Wispra, C1 join forces to offer wireless broadband in Canada’s major markets

Joe Church has handed over the reins of his broadband wireless venture, Wispra Networks Inc, to the experienced management team at C1 Communications Inc in a proposed agreement that will see the two companies combine operations under the banner of XO Communications Canada. XO Canada is affiliated with U.S. fixed wireless giant XO Communications, formerly know as NEXTLINK, which is also a major backer in Wispra Networks. The deal is expected to close within the next couple of months. "I’m not (intending on taking on) a direct management role in this joint venture going forward," Church told Report on Wireless. However, he will still be involved in an advisory role and probably have a seat on the board. While he couldn’t provide additional details of the transaction, he indicated that the agreement is now with the lawyers and tax accountants to determine the structure of the deal. Complying with foreign ownership rules isn’t anticipated to be a problem, says Church. Wispra, with the backing of XO Communications, was awarded licences in the 24 GHz range covering Canada’s six largest cities in the country’s first spectrum auction last fall (RoW, Nov 29/99). By linking up with a competitive local exchange carrier (CLEC) like C1 and its extensive fibre network in the major Canadian centres, XO Canada hopes to become a formidable competitive force in the voice, data and Internet access markets. Research analyst for Canadian market strategies at the Yankee Group, Jeremy Depow, wrote in a recent brief that "access to LMCS licences in six top cities combined with C1’s resources will enable the new company to quickly build networks and begin to offer facilities-based services to its customers. The new company will also benefit from the experience and extensive intercity fibre networks of Virginia-based XO Communications." XO Canada will concentrate on the lucrative markets of Toronto, Ottawa, Montreal, Edmonton, Calgary and Vancouver. The inaugural CEO at XO Communications Canada will be Tony Cassetta, president of C1 Communications whose has held senior executive positions with Bell Canada and Bell Canada International. Cassetta, who will take on the new position when the deal is finalized, expects to turn on service in Toronto and Vancouver in the first quarter of next year. "This deal expands the technological cap-ability available to the company," Cassetta told RoW. With a ready-made portfolio that now includes LMCS, DSL and fibre in-house, he says the company can offer the lowest price points possible, depending on the access technology. Considering that it’s infrastructure is already in place, Cassetta says the new company should be able to hit the ground running. "You’ve got a company that’s ready to go out there and do some serious business for customers and compete on this landscape," he notes. Church says services will likely be branded under the XO Communications Canada moniker. "Now XO is a brand new (name), but over time, it will become known just like the Sprint one has become known in Canada," he says. "We should benefit from any cross-border advertising that goes on." Church turns his focus to mobility and PCS auction With Church letting go of day-to-day operations of the company, he will now shift focus to his mobile wireless venture, Wireless2net.com Inc, which is expected to participate in the upcoming PCS spectrum auction. Church says a final decision on whether his company will participate has yet to be made. "It all depends on so many things: money, other people, partners …," he says. The application deadline for participants wanting to take part on the auction of additional PCS spectrum is Nov. 14.

Wispra, C1 join forces to offer wireless broadband in Canada’s major markets

News | 11/13/2000 5:00 am EST

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