RoW Update

Hearings on foreign ownership in telecommunications firms begin this weekThis week the House of Commons Standing Committee on Industry, Science and Technology begins hearing arguments on potentially changing the country’s rules governing foreign ownership in telecommunications service providers. On Tuesday, January 28, the following Industry Canada officials are scheduled to appear: Peter Harder, deputy minister; Michael Binder, assistant deputy minister; Larry Shaw, deputy director general; Allan MacGillivray, director; and Pierre-Yves Boivin, economist. On Wednesday, January 29, the following wireless industry representatives are slated to appear: Rogers Wireless Inc. – Francis Fox, president strategic relations; Dawn Hunt, VP government and inter-carrier relations; Microcell Telecommunications Inc. – André Tremblay, president and CEO; and Ericsson Canada Inc. – Lionel Hurtubise, chair. CWTA following Copyright Board hearing on blank media tariffThe Canadian Wireless Telecommunications Association (CWTA) is keeping a close eye on the Copyright Board of Canada’s hearing on proposed new tariffs regarding blank audio media. While the Canadian Private Copying Collective (CPCC) has indicated that cell phones, PDAs, laptop computers and other wireless communications devices aren’t on the targeted list, the CWTA is at the hearing to make sure they won’t be next year. In comments to the 2002/2003 tariff consultation process, the CWTA noted that the CPCC had agreed with the wireless association that wireless devices whose explicit use is not for downloading or playing music, such as cell phones and PDAs, would not be on the targeted device list (RoW, Dec. 9/02).A representative of Canada’s wireless industry lobby tells Report on Wireless that the CPCC has not given any assurances that it won’t propose tariffs next year that target wireless communications devices such as cell phones and PDAs. For more information on the hearing, please refer to the Jan. 23/03 issue of Report on Wireless affiliate publication Canadian NEW MEDIA. Service providers using high-capacity, high-bandwidth airwaves need to be focusedFixed wireless service providers need to adopt a more focused business strategy if they are going to succeed, says the head of one of Canada’s fixed wireless service providers. Bryan Boyd, president and CEO of TeraGo Networks Inc., had that message for existing and emerging fixed wireless providers at the Wireless Communications Association’s Technical Symposium in San Jose last month. TeraGo won 70 licences in the 1999 auction of frequencies in the 24 GHz and 38 GHz range. Boyd tells Report on Wireless that much of TeraGo’s success is a result of a concentrated data communications strategy and that the company isn’t trying to be all things to all enterprises. Fixed wireless service providers have to present themselves as an alternative to the incumbents, he explains. That’s exactly what TeraGo has done. The Toronto-based firm is a data communications provider to businesses operating in suburban business parks. It’s growing at a healthy clip, adding about 40 new customers every month. Be sure to check out next week’s full issue of Report on Wireless for more information on TeraGo Networks and Boyd’s message to fixed wireless service providers. Details of Craig’s purchase of Look shares emerging slowlyDetails of Craig Wireless International Inc.’s recent purchase of nearly 7.2 million shares in Look Communications Inc. are beginning to emerge slowly. On the same day Look announced that it had come to an agreement with Unique Broadband Systems Inc. for the sale of 20% interest in the company, Craig revealed that it had also purchased a significant ownership stake in Look from an undisclosed third party (RoW, Jan. 20/03).Winnipeg-based Craig now holds almost 8.8 million shares in Look representing 29.9% of the company’s outstanding shares. Craig also plans to apply to the CRTC to acquire an additional 752,923 common shares, which would bring Craig’s total Look common share holdings to 32.2%.A Look representative tells Report on Wireless that the company won’t comment on Craig’s share purchase because Craig bought the shares from other Look shareholders. Craig has indicated that it has aspirations to build a national footprint for its wireless cable and high-speed Internet business.Who Craig purchased the shares from is currently unknown as it has refused to return repeated calls. BCE Inc., through its former Teleglobe holding, and Charles Sirois’ Telesystem Ltd. held a combined 70% ownership stake in Look after it emerged from bankruptcy protection early last year (RoW, Feb. 19/02). Mobile Knowledge defaults on debenture covenantsMobile Knowledge Inc. has defaulted on certain financial covenants under its March 2002 secured convertible debentures. In a news release containing little detail, the Ottawa-based company noted that the default was "as a result of delays in completing certain transactions in December 2002." Details on those transactions weren’t provided in the release. Mobile Knowledge, formerly known as SiGEM Inc., provides GPS and computer dispatch services to the taxi, limousine and transit markets. The company is currently in negotiations with debenture holder representatives "to cure and/or waive these defaults." Management is currently taking steps to manage the company’s resources. Prior to this announcement, the company had been experiencing slower than anticipated sales, but generally seemed to be enjoying solid growth and uptake of its products and services (RoW, Sept. 16/02). About 15 months ago, Mobile Knowledge undertook a restructuring to refocus on core operations and business (RoW, Sept. 18/01). Rogers launches new voice-activated serviceRogers Wireless Inc. has introduced a new and more advanced hands-free voice-activated dialing system eliminating the need to create voice tags. VoiceCommand combines voice recognition and text-to-speech technology, making it easier to store and manage phone numbers. "By dialing ‘(pound key) 11’ on their wireless phone, Rogers AT&T Wireless customers can easily place any number of calls using only their voice," Karen Webb, Rogers’ VP product management, said in a news release. The VoiceCommand platform allows Rogers’ subscribers to create an extended online address book enabling them to make hands-free calls, add contacts to their address book, or change their user profile. Subscribers can have access to this service for $5/month. This new method of voice dialing is similar to the "pound-pound" technology the company introduced last year (RoW, June 11/02). The "#-#" option allows subscribers to more quickly access wireless content as opposed to having to scroll through WAP-based menus. Telus Mobility shows off some "texting" abbreviationsTelus Mobility has introduced some SMS abbreviations to encourage more Canadians to take advantage of the text messaging service. The company showed off some of the abbreviations in light of the introduction of inter-carrier SMS between Canada and the United States. Report on Wireless broke the news that the introduction of the service between the two countries was imminent earlier this month (RoW Update, Jan. 13/03).In conjunction with the lighting up of the inter-country text messaging, Telus and its U.S. roaming partner Verizon Wireless unveiled their list of fun and friendly text messaging phrases. Here are a few: HI NABR – Hello neighbour CLD A? – Cold, eh? BNJR – Bonjour SK8? – Wanna go skating? HKY 2NITE – Let’s watch the hockey game tonight :) oO – Snowman UBS posts lower loss, but revenues low from Hughes contract endingUnique Broadband Systems Inc. posted a lower loss in its 2003 fiscal second quarter ended Nov. 30, 2002 compared to the same quarter the previous year, according to financial results released by the company. However, revenues were low in the first six months of the year as the company continued to struggle to find a major customer following the end of a major contract with Hughes Network Systems. The $66-million contract with Hughes ended in mid-2001 (RoW, Aug. 7/01). UBS had a net loss of $4.2 million in Q2 2003, compared to $6.6 million in Q2 2002. For the six-month period ending November 30, the company posted revenue of $2.9 million, driven primarily by sales of digital video broadcast equipment, MMDS transmitters and waveguide passive components. UBS indicated that sales channels for new and existing product lines are continuing to develop, and recent acquisitions have helped it to offer a more comprehensive portfolio of products. On a going forward basis, the company has secured some recurring revenue through the acquisition of a 20% ownership stake in Look Communications Inc. (RoW, Jan. 20/03). INTERNATIONAL NEWS U.S. wireless lobby steps up campaign on wireless LNPThe Cellular Telecommunications and Internet Association (CTIA) is intensifying its campaign against the Federal Communications Commission’s (FCC) mandated wireless local number portability (LNP) policy. According to the policy, all wireless operators must implement wireless LNP by November 2003. The CTIA isn’t satisfied with the policy and wants it to level the playing field between wireline and wireless carriers. Most recently, the CTIA filed a petition with the commission asking it to rule that a wireline carrier must allow its subscribers to keep their phone number when they switch service to a wireless operator. "The FCC’s current wireless LNP rules will force the wireless industry to invest billions of dollars over the next decade to support portability, and ostensibly, to increase wireline-wireless competition. But, the FCC has never resolved whether wireline carriers can restrict a customer’s ability to port his telephone numbers to a wireless carrier whose service area covers the wireline carrier’s rate center," states a January 23 CTIA news release. Tom Wheeler, president and CEO of the CTIA, had some harsh words for the FCC. "Number portability is as unnecessary in the competitive wireless market as socks on a fish – but the FCC has made the situation even worse. Despite pro-competition claims, in about 90% of the cases consumers won’t be able to take their wireline telephone number to a wireless phone," he said in the news release.Last year, a Decima Research survey revealed that two-thirds of Canadians support the introduction of wireless LNP (RoW, Oct. 15/02). FCC evaluates Wi-Fi in the analog TV bandsThe Federal Communications Commission (FCC) is considering allowing a multitude of wireless devices to operate in the analog TV spectrum. Since late last month, the FCC has been quietly studying a proposal that would allow devices using unlicensed spectrum to operate in the TV spectrum. However, the devices would only be allowed to tap into currently unused TV spectrum and could not cause unwanted interference to authorized services. The proposal was adopted on December 20, but has yet to be published. Once published, there will be a 75-day comment period. The FCC expects the broadcasters to vehemently defend their turf, while others want access to the spectrum once broadcasters migrate to digital. "We’re in for a bit of a bumpy ride," Alan Scrime, chief of the FCC’s policy and rules division, told CNET News.com.

RoW Update

News | January 27, 2003

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