Itemus unveils plans for delivering services to mobile workers via a virtual network

Itemus Inc, Toronto, is assembling the final pieces of a new virtual network that it will probably launch in Europe or Asia in September before rolling out in North America early next year. The mobile virtual network operator (MVNO) would be one of the first of its kind in North America, offering a variety of wireless services to businesses over a data-centric network. "We envision being in a position by Labour Day of having several enterprises and one or more consumer portals on a wholesale basis working with us on an alpha test or at least being able to launch an alpha test of these applications over wireless fabric," says Chris Scatliff, who is in charge of itemus’ broadband initiatives. "So what we’re focusing on right now is lining up the key enterprises which will hopefully be global 200 enterprises and (then) demonstrate that (network) running sometime shortly after Labour Day." Launching a service in either Canada or the U.S. won’t happen until about the second quarter of 2002, once networks here are at least 2.5G-ready. "We will be looking to start our commercial service initially with the operators that are the furthest down the road in deploying next generation wireless networks," he says. MVNO-type model gaining steam in Europe with Virgin The MVNO model, which is becoming more prevalent in Europe, enables newcomers to provide services much in the same way as do facilities-based carriers, but without having to pay high upfront costs of acquiring spectrum. Itemus secures bandwidth by leasing wholesale capacity from other carriers. Unlike Richard Branson’s Virgin Mobile, which is essentially a resale arrangement according to Scatliff, the true MVNO actually owns the customers and in some cases owns its core Internet network to backhaul all of the traffic. Scatliff says itemus wants to create a new generation of wireless Internet applications and services, reminiscent of the pioneering strides made by wireline ISPs in the mid-1990s. More specifically, it’s trying to replicate, in the wireless space, the success of wireline ISP UUNET, which became one of the world’s largest ISPs providing access to the business community. Now part of the WorldCom empire, UUNET became a major revenue generator and was profitable. "We see a completely different market (…) that is very much parallel to the ISP market," Scatliff told Report on Wireless. "(They) were strictly businesses-oriented and focused on meeting the technical support requirements, the service level agreement requirements, the customer care requirements, the technical competence requirements that enterprises require." Today, carriers aren’t set up to provide that type of service, says Scatliff, adding that despite their efforts to attract the business community, they are still offering consumer-type applications. Businesses are looking for applications that have their origins in the corporate world and create value for the business, he says. He says itemus’ main focus will be applications geared to the corporate intranet and extranet, such as programs that allow mobile workers to manipulate supply and distribution chains and customer service process applications. Scatliff estimates that anywhere from 25-60 per cent of a company has a mobile requirement as part of the job description, whether it be technicians or sales representatives. On the wireline side of the Internet, consumers are typically spending between $18-22/month for Internet access, while businesses are often spending $1000s/month on a per individual basis. "So you wind up with a huge difference in the revenue outlook when you’re looking at business applications," says Scatliff. "And this is where itemus sees the great opportunity." Despite the market fluctuations of late, there is a massive amount of spending going on in the area of intranets, extranets and Internet-based business processes, contends Scatliff, adding that "this is one area where spending seems to be unabated." Scatliff adds that their new virtual network shouldn’t be perceived as a competitive threat to facilities-based cellular carriers because they will be driving traffic to their networks. "The premise is going to have to be that it adds substantial revenue from sources that they either don’t have today or would find it difficult to bring today," he says.

Itemus unveils plans for delivering services to mobile workers via a virtual network

News | March 5, 2001

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