SaskTel and Craig Wireless join forces to develop regional multimedia content

Saskatchewan Telecommunications Inc (SaskTel) is making plans to become a regional developer of multimedia content, in the wake of two recent deals that will see the Crown-owned corporation move into broadband wireless cable. Details are sketchy at this point, and Sasktel executives will only say that they are evaluating several options to become content providers following the telco's 29 per cent purchase of Craig Wireless International, and its success in winning high-speed wireless spectrum licences in the province. "Our ambitions go beyond just an access provider," Dan Baldwin, VP of strategic business development at SaskTel, told Canadian NEW MEDIA. "We want to be an application service provider with hosting and a variety of other functions- I think Craig has the same sort of vision. They would like to move into the Internet and develop revenue streams that are not solely associated with just access. I think given what they own in terms of radio stations, television stations, I think there may be some very good synergies there." On March 24, Ottawa awarded SaskTel a licence to build a Multipoint Communications Services (MCS) microwave network in Saskatchewan. The telco committed to spend $40 million to make high-speed Internet access available to 95 per cent of the province's population and to more than 500 schools and libraries within its third year of deployment. Late last month, the telco announced that it would be teaming up with Craig Wireless, a subsidiary of Craig Broadcast Systems Inc. "We're certainly not in the league of BCE that's going to go out and buy CTV for $12 billion," says Baldwin. "We actually believe that there is a role to be played in developing regional content. I think that the Yahoos and the Lycoses and the AOLs certainly have the global/national content well in hand. I think where there is some interest, and where there is a niche for people like SaskTel and Craig Wireless to play is in developing regional portals and, certainly, when we look at our business, we are the biggest ISP in the province." Craig Wireless is a natural partner to help SaskTel move into the wireless delivery of content. It provides wireless cable TV services in Manitoba, and several companies in Canada are looking at ways to use the fixed wireless technology to deliver high-speed Internet access. Baldwin is reluctant to discuss the future growth areas, reserving his comments to disclosing the near-term testing of MCS sites, and ongoing negotiations with Saskatchewan's learning community about providing them with access as part of the MCS licence requirements. "The Internet is a key area, and then some of the things we could grow on the Internet," says Baldwin. "We didn't invest just to do cable- In the end we both want to have multi-function, high-speed multimedia networks. The big challenge for both industries is to see who is most effective in serving the customers that they want."

SaskTel and Craig Wireless join forces to develop regional multimedia content

News | 05/04/2000 4:00 am EDT

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