New Barrett 4G network could make rural broadband faster than urban

Barrett Xplore Inc.’s upcoming 4G and satellite network may mark the first time rural Canadians will have access to higher broadband speeds than many of their urban counterparts. On Oct. 7, Barrett announced it will launch a next-generation 4G network by the end of the year, a first of its kind in Canada. The network will employ WiMax or LTE technology, in combination with a new high-throughput satellite architecture, to offer broadband to rural customers. The system aims to employ terrestrial WiMax and LTE wherever possible, but the satellite system will be used in markets where topography and density are an obstacle. The satellite network will allow for a maximum speed of 25 Mbps, but the new terrestrial wireless network is expected to initially provide speeds up to 40 Mbps. The terrestrial network will later be upgraded to LTE, allowing for speeds up to 100 Mbps. Most broadband subscribers, whether urban or rural, currently use service in the five-to-10 Mbps range. Urban broadband currently tends to be delivered through wired DSL or cable networks that typically reach between five-to-15 Mbps, although higher price points hit 25 to 50 Mbps and wireless 3G and HSPA+ technologies offer speeds of up to 21 Mbps. Barrett CEO John Maduri said in an interview that Barrett’s hybrid solution should provide “ubiquitous national broadband for anyone who wants it,” and with significant added value and reliability compared to today’s offerings. The network will first launch in Quebec and southwestern Ontario, and will expand over the next two years. Maduri said he estimates the service will reach 2.5 million currently unserved or underserved consumers. Mark Goldberg, head of telecom consultancy Mark H. Goldberg & Associates Inc., said in an interview the technology solutions chosen by Barrett provide “a long-term path and evolutionary plan for those markets that are currently underserved.” Goldberg said he demoed satellite technology over the summer and found he could use all the applications he needed, including video chat and voice-over-IP services like Skype and Google Talk. The new network’s upgraded speeds significantly improve on current options for high-speed Internet access in rural areas. “ would significantly improve the cost-per-megabit value of broadband,” Maduri said, adding that the network will become “more competitive with terrestrial solutions on both price and speed.” Maduri said pricing for the new service will remain on par with the company’s existing pricing plans, which range from $60 to $80 a month for 1 Mbps service. He added that the new satellite technology should yield a more affordable installation cost, despite the fact that satellite technology has traditionally been linked to significantly higher start-up costs than other forms of broadband. The initial cost of launching the satellite portion of the network will be shared with companies in the United States and Europe, which is expected to make the technology more cost-effective. The satellite network will function through a new Viasat1 satellite being launched in early 2011. Viasat, the company that designed and operates the satellite, said in a release the new technology allows for more bandwidth than the entire fleet of satellites currently serving North America. But Barrett’s competitors seem unfazed by the announcement. Ian Stevenson, CEO of broadband provider Execulink, said he wasn’t surprised by Barrett’s announcement. “ essentially the same network improvements that all companies are doing right now to meet the growing needs of the consumer,” he said. But Stevenson said he finds Barrett’s proposed 100 Mbps service to be “a pretty bold claim.” Even if Barrett can offer speeds that high, most consumers wouldn’t have a need for it in the foreseeable future, Stevenson said. Duncan Stewart, director of research for technology, media and telecom at Deloitte Canada, said in an interview that Barrett’s hybrid solution leaves “the market an awful lot more competitive.” Stewart said he anticipates Barrett’s competitors to pursue similar improvements. But Stewart did express concern the yet-to-be unproven high-throughput satellite technology can deliver on its promises. Historically, the latency lag and limited upload speeds of satellite “don’t represent a true 4G solution,” Stewart said, adding that Barrett’s speeds probably “represent an absolute best-case scenario.” Still, the improved speeds will help improve broadband access and quality in rural Canada. Though Rogers Communications Inc. and Bell Canada are now testing LTE wireless solutions, the incumbents have traditionally emphasised Canada’s urban markets when deploying their 3G and HSPA+ technology. It remains to be seen what impact Barrett’s new technology will have on a forthcoming CRTC hearing that will look at whether broadband should mandated as a basic service. Goldberg pointed out that Barrett’s new network represents “an impressive level of investment by a private sector company” to serve existing and new customers. news@thewirereport.ca

New Barrett 4G network could make rural broadband faster than urban

News | October 15, 2010

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