Microcell and Inukshuk Internet ready for major network builds this year

Microcell Telecommunications Inc’s plan to spend $375 million and increase capacity by about 25 per cent constitutes the single largest network expansion since the company’s initial build out. Speaking to investors on Feb. 13, president and CEO André Tremblay explained that an investment of this scale will enable the Montreal-based company to add about 300 to 350 cell sites. By 2002, Microcell hopes to have between 1400 and 1500 cell sites covering 63 per cent of the country’s population. Microcell finished the year off with a record-number of new additions in the fourth quarter, bringing total pre-paid and post-paid subscribers to more than 920,000. With wireless penetration anticipated to hit the 35-per cent mark by year’s end, an additional two million potential subscribers will be in the market for cell phones. Microcell forecasts 400,000 new additions this year giving it a potential to top 1.3 million subscribers by the end of this year. It anticipates being earnings positive by the end of the year. Tremblay says growth at this rate would give Microcell the distinction of being the quickest wireless operator in Canada to the one million-subscriber mark. Canada’s smallest wireless carrier is also moving quickly to become the first carrier to complete an upgrade to its national network that would provide higher data speeds. Microcell completed live tests of GPRS in conjunction with Research in Motion Ltd late last year and is now moving to implement GPRS across its entire network which is to be completed by the middle of the year (RoW, Jan. 8/01). Microcell is in a race against Rogers Wireless Inc which has also opted for a GSM/GPRS overlay of its TDMA network. Rogers expects to complete its network upgrade about the same time as Microcell (RoW, Dec. 11/00). Earlier this year, Microcell Connexions president and COO Rajiv Pancholy told Report on Wireless that Rogers’ plans would not affect Microcell’s GPRS deployment in any way. Major network-build for Inukshuk on the horizon Inukshuk Internet Inc, Microcell’s wholly-owned fixed wireless subsidiary, is also poised to make significant investments in building out its near-national MCS network. Tremblay estimates the total cost of network deployment will range from $250-$350 million. Inukshuk will be completely self-financed, he adds. "We’re waiting to get the right technology. When (we’re) ready to deploy that technology, we will have access to many kinds of financing (including) vendor financing on one hand and on the other high yield (bonds)," says Tremblay. "We don’t expect any dollars from Microcell to go there in the future." While it has been nearly a year since it was awarded 12 of the 13 licences (RoW, April 3/00), the company is still searching for the right non-line-of-sight technology. Inukshuk is evaluating equipment from a couple of vendors and Tremblay says he expects technology issues regarding line-of-sight will be solved this year. If that’s the case, the company can start signing up customers.

Microcell and Inukshuk Internet ready for major network builds this year

News | February 19, 2001

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us