ROW Update

First week of bidding in 2300/3500 MHz auction: recapIndustry Canada’s 2300/3500 MHz spectrum auction kicked off one week ago with more action than anticipated. By mid-week several of the bidders’ strategies were becoming apparent. Telus Communications Inc., previously thought to be going after a swath of licences across the country, unveiled a well-hidden strategy of seeking only about a dozen licences in Quebec. Bell Canada and Rogers Wireless Inc. have blanketed the country with bids. While the auction won’t be a huge financial success for the department, it has proved to be an effective tool for getting spectrum into the hands of newcomers for relatively low cost. For more detailed information on the first week of bidding, please visit the auction web site here. VIA Rail to issue RFP for mobile Wi-Fi servicesA VIA Rail representative tells Report on Wireless that the company is putting the final touches on a request for proposal (RFP) for on-train Wi-Fi services that it hopes to put out by the end of the first quarter. Guy Faulkner, VIA’s product manager for corridor services (Quebec and Ontario), says the company also hopes to initiate a pay-per-use trial in the near future. Further details on VIA’s decision to offer customers a commercial Wi-Fi service will be presented in the next issue of Report on Wireless. Wireless carriers post strong subscriber numbers Canada’s four national wireless operators posted strong subscriber figures in the fourth quarter and fiscal year 2003, combining to bring approximately 634,000 net additions online in Q4, and nearly 1.5 million for the entire year. Of significant note is the 70,000 net additions Microcell had through its CityFido wireline replacement initiative in Vancouver. While that figure is impressive, the company’s relative share of the 2003 new subscriber pie shows Microcell might still be encountering difficulty in regaining traction in the broader Canadian market. Report on Wireless will provide an in-depth look at the four companies’ figures and other aspects of their 2003 financial results in an upcoming issue. Inukshuk launches service in YellowknifeInukshuk Internet Inc. has launched long-awaited MCS services in Yellowknife. The subsidiary of Microcell Telecommunications Inc. is working with local ISP SSI Micro to provide the service. The service is aimed at consumers, but there is a business service coming down the pipe, Jeff Phillip, president and CEO of SSI Micro, said during a February 11 press conference. Setting the service apart, consumers will be able to roam onto other Inukshuk-operated networks in other parts of the country. Details of further network builds weren’t provided, but Dean Proctor, VP of Inukshuk, said plans for future network deployments will be announced in due course. The service will cost $59.95/month including a modem rental. Revised Canadian Table of Frequency Allocations releasedIndustry Canada has released an updated version of the Canadian Table of Frequency Allocations incorporating changes that were made stemming from decisions at the World Radiocommunications Conference in 2000 (WRC-00). In DGTP-003-04, the department also notes that it will soon launch a consultation on adopting changes to the Table resulting from WRC-03. Industry Canada indicates in the notice that it will begin or has already initiated public consultations on the following bands: 614-806 MHz, 1710-2200 MHz, 2500-2690 MHz and 3-30 GHz (selected domestic footnotes). Mitec closes major financing, signs multi-year letter of intentMitec Telecom Inc. has been on a roll lately, closing a $30-million equity financing and securing a multi-year letter of intent (LOI) with a major wireless equipment maker. Desjardins Securities Inc. led a syndicate of underwriters, including Orion Securities Inc., BMO Nesbitt Burns Inc. and Research Capital Corp. to secure the financing. The group purchased nearly 11 million common shares at $2.75 per share. The financing’s net proceeds will be used to pay down on the company’s debt, for working capital purchases, and for potential acquisition opportunities. Mitec’s LOI calls for the company to supply a range of radio frequency products and subsystems for fourth-generation broadband data networks. “The marketplace has clearly signaled its enthusiasm for next-generation wireless, and our strategic R&D investments position us to immediately seize these opportunities,” David Kennedy, Mitec’s executive VP sales and marketing, said in a news release. ZIM inks agreement with Mexican wireless operatorZIM Technologies International Inc. has signed an agreement with Mexican wireless operator Telcel, a wholly owned subsidiary of America Movil, for the introduction of its SMS products. The products, to be called Telcel SMS Office and Telcel SMS Mail, will offer Telcel subscribers the advanced functionality of higher-end handsets through any mobile phone. “Many of our customers desire low-cost wireless devices, solutions and connectivity. The combination of ZIM’s mobile tools and our users’ existing mobile phones is ideal and we believe will have a strong appeal in the marketplace,” Humberto Chavez, value-added service and revenue assurance corporate director for Telcel, said in a news release.

ROW Update

News | February 16, 2004

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