Calgary MUD awaits approval to add cable TV to telephone, Internet bundle

A subsidiary of a Calgary rental property owner has received CLEC status and is hoping to offer bundled telephony, Internet and cable services soon. Suite Systems Inc (SSI), a division of Boardwalk Equities Inc, hopes to offer phone service in Edmonton and Calgary, with an eye to rolling out to other communities across the country. "If you wanted to put them in order of where we’re likely to go obviously Calgary would be first because we’re here," Mike Guyette, VP operations for SSI told Network Letter. "Edmonton would probably be second because that’s where our largest concentration of apartments are . And then after that it would be up in the air if we would be in Saskatchewan or in Ontario." In addition to providing telephony services in the two major cities in Alberta, Suite Systems is asking the CRTC for a broadcast distribution undertaking licence that would permit it to offer IP-based cable services. Service would be available in communities in all three prairie provinces and in Ontario. The telephone services will have class 5 functionality and will feature standard components such as caller ID, call forwarding and messaging. The company is predicting a strong market penetration, and the financial sector tends to agree. In a research paper on the firm, the National Bank endorses the move. "Although forming a communications services company is a major step for any company, management has already proven itself to be technologically competent, embracing leading-edge processes and software to maximize and optimize its relationship with its tenants," the study’s three authors write. Among the points in SSI’s favour are the captive market it has with its apartment and condo clientele, being situated in centres with strong real estate markets and a stable asset class, and being a preferred supplier of communications and e-commerce products. Weighing the risks Red flags are raised on several fronts, however. The timing of the roll out depends on third parties such as ILECs and fibre providers. Established telephone and cable operators are not likely to cede market share without a fierce fight. Guyette counters that being so close to its tenants, Boardwalk has a better one-on-one relationship with them. The National analysts also warn that too much concentration on SSI could distract Boardwalk’s managers from their core operations. Boardwalk doesn’t seem troubled by that last possibility. Guyette points out that in addition to his hiring, SSI has hired a VP of business development, a chief information officer and a chief technology officer. In its annual report, Boardwalk maintains extending telecommunications and cable services to its tenants fulfills its mandate. "A house without services is a warehouse. A house with services is a home," the company writes.

Calgary MUD awaits approval to add cable TV to telephone, Internet bundle

News | November 6, 2000

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