Pole access problems stall rollout of IP-based digital cable system in Calgary

Suite Systems Inc’s rollout of its new IP-based digital cable system in Calgary has been stymied by the inability to gain access to utility poles that would bring fibre to its buildings. The new competitor in the broadcast distribution market has put its rollout plans on hold as the CRTC reviews an application by the company for a regulatory solution to its access problems. "Unfortunately, it doesn’t make a lot of sense in wiring more buildings until we know we can get fibre access," says Michael Guyette, VP operations at Suite Systems, which is initially targeting the multi-unit dwelling market. The subsidiary of Boardwalk Equities Inc, which owns 25,000 residential units mostly in western Canada, has wired approximately 1,500 Boardwalk units, but only 350 are actually connected to fibre, Guyette says. Suite Systems recently filed a Part VII application with the commission asking it to resolve its pole access problems. The poles that Suite Systems would like to use are owned by the City of Calgary’s electrical utility, Enmax Corp, which has allocated space on them to Telus Corp, Shaw Communications Inc and its own subsidiary, Enmax Power Corp. When Suite Systems approached Enmax about negotiating a deal to access the poles, it was told to consult Telus to sublease the telco’s space. Telus referred Suite Systems back to Enmax, saying it does not have the right to sublease to other companies. Guyette calls Suite Systems’ inability to even begin negotiating pole access a stall tactic being employed by its competitors. "We haven’t talked to Shaw to any great extent, but we’ve focused on Telus, whom we believe is able to sublease their space," he told CCR. "All they are doing is effectively stopping competition from happening by playing games. Quite honestly, I’ve been in the business for a dozen years, so I’m not at all surprised. That’s how the incumbents act. That’s how they protect their turf." Gary Mielke, a senior policy analyst at Telus, says the poles in question are owned by Enmax, and Telus believes that it does not have the authority to grant the access that Suite Systems is seeking. He adds that Telus’ space on the poles is already fully occupied. "Even in the event that we could sublet to them or give away our space, we already occupy it," Mielke says. "…We don’t have any spare capacity any-way…They interpret a space to mean that they can put multiple cables or multiple attachments in there when in fact Enmax’s own technical guidelines really only permit the attachment of one cable strand." A recent federal court ruling that said the CRTC does not have the jurisdiction to resolve pole access issues involving provincially or municipally owned electrical utilities may not have an impact on Suite Systems’ application since it has gone after federally-regulated Telus (CCR, Aug. 2/01). "We’re saying, let us know who has access to the space, let us know the rules that govern that space, and who has the right to provide us access," Guyette says. Suite Systems is unlikely to reach its goal of having 2,000 units wired by the end of the year unless a quick solution is found to its access problems. If a solution can’t be found, Guyette says, Suite Systems could offer its TV service in another way. "There are a few technologies and relatively well-known (alternatives to fibre) for delivering the service, but it would not be a fully convergent solution," he says. "We’ve made the investment and commitment to go ahead, but the frustrating thing is that we are unable to move ahead until this fibre issue is worked out or we find other ways to resolve this." Suite Systems began offering about 120 channels for a monthly fee of $34.95 after being granted in December 2000 two regional Class 1 broadcast distribution licences covering 17 communities in Alberta, Saskatchewan, Manitoba and Ontario (CCR, May 10/01; Feb. 1/01). Suite Systems’ business plan involved bundling cable, Internet and telephony services. For more information on Suite Systems’ Part VII application, see the July 30/01 edition of CCR affiliate publication, Network Letter.

Pole access problems stall rollout of IP-based digital cable system in Calgary

News | 08/15/2001 4:00 am EDT

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