CSP Internet, first to use 3.4 GHz band for fixed wireless services in Canada

Vancouver-based CSP Internet Ltd will one of the first wireless access providers to use the 3.4 GHz band to provide commercial non-military service after acquiring nearly 90 spectrum licences for the band in British Columbia and Saskatchewan early last month. An additional 55 licences in Alberta will be added to the company’s spectrum holdings when it receives approval for the licences, expected within the next couple of months. The 3.4 GHz band was previously reserved for military use. It was opened up to commercial applications about six months ago. Discussions to loosen the band’s regulations began early last year when Nortel Networks Corp (then Northern Telecom Ltd) and the Department of National Defence (DND) agreed on the technical specifications for fixed wireless equipment (RoW March 29/99) operating in that band. DND used the frequencies for some naval and land-based radar systems, and the potential for interference with commercial access systems was extensively studied by both parties. They ultimately decided an agreement was doable. Wayne Wilson, director of the wireless division at the BC-based company, says the potential for interference still exists. There are only two major military installations in Canada that can possibly cause problems for the 3.4 GHz band and one of them is situated in Victoria. The other is in Eastern Canada. The company was granted licences covering 30 communities and surrounding areas in BC and another 18 in Saskatchewan. While interference remains an issue, he says there are larger issues that need to be resolved before the spectrum can become widely used for wireless access. Policy coordination with the Federal Communications Commission (FCC) in the United States is probably a greater problem, he says. "(The FCC) still reserves this band for military use and I’m definitely going to have some problems there (because) the rules have actually not been set yet," he told Report on Wireless. "Unfortunately, that makes it harder." Issues surrounding power levels and antenna polarization will need to be addressed, but Wilson doubts that will be difficult. "It’s just one more layer of rules that we have to deal with." Building on unlicensed deployments to grow business The company, which already has an extensive network of more than 400 radios operating in the licence-exempt 2.4 GHz band, is the prime contractor for the Provincial Learning Initiative for the BC government. It’s using the ISM band to provide local area network extension and public Internet access for the schools. Wilson says the additional 3.4 GHz spectrum means his company can provide its customers with a sense of certainty in terms of low levels of interference. And with the growing number of ISM band deployments, it was becoming increasingly difficult to guarantee a satisfactory level of clear airwaves. The company is predicting significant growth as a result of the new licences. Annual revenue is about $4 million and Wilson says CSP Internet will spend about $11 million to build out the network for the initial 88 licences it was awarded from Industry Canada. The wireless access provider doubts it will be that difficult to secure the financing needed to build out the network. "We think that’s the least of our problems," says Wilson. "We’ve been approached by a number of groups that want to get involved and certainly our band is on board. They’re prepared to provide some pretty significant funding." He says equipment manufacturers are clamouring to get in on the action as well. "We’ve talked to different manufacturers of radio gear, who are offering all kinds of wonderful deals if we’ll just deploy their equipment," Wilson states. "And we’ve had a number of feelers from the venture groups as well." The company will deploy equipment designed and developed by Breezecom of Israel. He says the BreezeAccess radios have a RJ11 port on them and are telephone-ready which adds another element to the business. Voice services in the fray While the band is ideally suited for voice, LAN extension and public Internet access, CSP Internet isn’t planning on becoming a local phone competitor. Wilson says that despite the capabilities of the band and the radios that will be deployed, "we have no intention of trying to become (CLEC) in the next six months or so." It appears that the company doesn’t require CLEC status to provide second-line tele-phone services in homes or businesses. "As long as the guy has a wired telephone into his house, we can offer him a second line and we don’t have to be a CLEC," he says, adding that lines for fax machines or a second phone line are on the slate for potential service offerings. "We are going to offer those services, but that’s an area where we don’t think we have that much expertise," he told RoW. "So we’re building our model on data and if we make the model work on data, then we can add other things like voice."

CSP Internet, first to use 3.4 GHz band for fixed wireless services in Canada

News | 10/02/2000 4:00 am EDT

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