Suite Systems begins roll out of IP-based cable, declares pilot project a success

Suite Systems Inc has successfully completed a small pilot of its new IP-based digital cable system, and plans to have about 1,000 homes hooked up by April. The subsidiary of Boardwalk Equities Inc, which operates 25,000 high rise apartments, townhouses and other residential units, was awarded two regional Class 1 broadcast distribution licences covering 17 communities in Alberta, Saskatchewan, Manitoba and Ontario (CCR Sept. 14/00). In a conference call with investors this month, Boardwalk’s CEO Sam Kolias touted the results of a technical test of the cable service with about 35 tenants in one of its apartment buildings in Calgary. There was no charge for the service. Of the 22 tenants who turned up for a feedback session, 20 indicated they would subscribe to the service on a full-time basis, and the remaining two said maybe, according to Suite Systems. "We spoke to the other customers who did not show up (at the meeting) and they replied as well on the positive side," George Reti, Boardwalk’s executive VP told CCR. Suite Systems CFO Rob Geremia said the company was at the "technological feasibility stage" as it was actually providing content to customers. He added that the next units being rolled out would be larger incubator models to test penetration rates and ensure the quality of the service. Geremia told investors that Suite Systems will spend $2 million to equip 1,000 units with its IP-based cable service. The firm would not reveal the precise rates that it will charge customers for the service. It plans to bundle its cable offering with Internet and telephony at rates below current average prices, company officials noted. Other apartment buildings along its fibre route will also be invited to connect to the service. Suite Systems officials admitted during the call that negotiations had not been completed with municipal electric utility (MEU) services, which would provide a fibre link from the buildings they were wiring back to central facilities. "As we speak, we have in our receipt written documentation. We will be meeting to discuss some points. But ourselves and our first MEU company are anxious to move forward," said Reti. "As a result, we are not delaying the actual wiring and connecting of our apartments to fibre from our head end and central facilities."

Suite Systems begins roll out of IP-based cable, declares pilot project a success

News | 02/01/2001 5:00 am EST

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