Future of Inukshuk learning content fund in question as ownership passes on to Rogers

New media content producers are becoming edgy about the fate of the Inukshuk Learning Plan fund in the wake of a takeover of parent company Microcell Telecommunications Inc. by Rogers Wireless Inc. One producer who has asked to remain anonymous was invited to submit a second phase application to the fund after an expression of interest phase. That second application was submitted in July, and there have apparently been no decisions yet made. The producer was told by fund administrators only that "the evaluation process is taking longer than expected." Inukshuk Internet Inc. officials are referring inquiries about the program to Rogers. A Rogers spokesperson would make no comment about when producers might expect funding decisions, or on whether the acquisition of Microcell by Rogers is either extending the process or possibly putting the fund in jeopardy. The viability of Inukshuk, however, remains as issue. The company, co-owned by Microcell and NR Communications, was once a three-way partnership between Microcell, NR and Allstream Inc. until last month when Allstream sold its 33% ownership in the company back to its two partners. Inukshuk made a first call in Ontario for Learning Plan proposals on April 7, 2004, with subsequent calls across the country over the next several months. According to fund documents on the web, the company was to contact applicants "on or about" September 30, and sign contribution agreements and begin work on projects by the end of November. On November 8, Inukshuk’s parent company Microcell was purchased in a high-profile acquisition by Rogers Wireless. Inukshuk offered the learning plan as a benefit to Canadians in return for being awarded valuable MCS (multi-communications service) radio frequency licences in the spring of 2000, which can be used to offer a variety of wireless applications. It was widely assumed that Inukshuk – then owned 50% by Look Communications – won 12 of 13 regional licences (SaskTel won the MCS licence in its home territory) because of its strong learning plan that placed an emphasis on service to the North. Rogers Wireless was unsuccessful in its bid for the same spectrum, as were TELUS, Craig Wireless and others. At the time of its application in 1999, Microcell executive Dean Proctor told Canadian NEW MEDIA affiliate publication Report on Wireless that the company would spend a projected $20 million in the first five years on its learning plan. The landscape has changed considerably since then. Look eventually ran into financial difficulties forcing the sale of its half of the Inukshuk partnership to Microcell. Unique Broadband Systems Inc. eventually acquired a controlling interest in Look, and became embroiled in a dispute with Microcell over Inukshuk’s spectrum. Inukshuk committed a significant chunk of its wireless bandwidth to a joint venture between it, Allstream and NR Communications – a move UBS said infringed on its rights to the same spectrum. Last summer, that dispute was headed to court. All this led up to the Rogers/Microcell acquisition last fall. In two subsequent spectrum auctions, Rogers Wireless won licences to a different radio frequency that can be used for the same purposes as its MCS licences, however, and it is questionable whether it now needs to use MCS spectrum that has an expensive learning plan attached, or whether it might let those licences lapse, with the frequencies reverting back to Industry Canada.

Future of Inukshuk learning content fund in question as ownership passes on to Rogers

Broadcast | February 4, 2005

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