The opinions expressed in this editorial are those of the author and do not necessarily reflect those of Decima Reports. When Microcell Telecom announced that it was folding its capacity wholesale operation into its retail PCS activities, it abandoned a long-time strategy of keeping separate companies separate – dubbed the Chinese wall. Microcell Connexions and Microcell Solutions are now being rolled into one organization under the Microcell PCS moniker. The distinct separation of companies, which will be maintained throughout the rest of the organization, was supposed to promote an open network allowing other companies to buy wholesale capacity on Microcell’s GSM network. It also gave prospective customers, primarily the business community, the assurance that they wouldn’t be bumped from airwaves by a growing number of consumers.  It wasn’t the open network philosophy that was the problem, so much as its wholesale strategy. The company scored its biggest contract only recently, when Research in Motion agreed to purchase capacity. During a recent conference call, executives put a brave face on Connexions disappointing financials. They projected that its wholesale operations would double the number of subscribers and quadruple in revenue. The company counted 15,000 subscribers with revenue of $3 million at the end of last year and projected 30,000 subscribers bringing in $12 million for 2001.  Despite a recent surge in subscribers to its wholesale business – it really began to pick up in 2000Q3, according to company executives – the business case didn’t exist for the company to forge ahead especially with the high costs of management.  The elimination of some duplication will probably follow under one consolidated management team enabling the streamlined operation to maximize the benefits of a closer relationship between the two former groups.  While this may be considered an about-face of strategy, it’s a prudent move by the country’s smallest national wireless carrier. To remain a viable competitor in the Canadian wireless market, it now has access to a larger pool of money to expand its network and attract more consumers.