Wireless cable operator Look Communications Inc scored a minor victory last week in its ongoing battle to remain in business. The Milton ON-based firm received a seven-day extension from the Bank of Montreal and the Bank of Nova Scotia on loan payments in order to come up with a new business plan and new financing. The extension allows Look to continue discussions with the banks and its two principal investors, Charles Sirois’ holding company Telesystem Ltd and Montreal-based BCE Inc.

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The demise of Internet incubator itemus Inc effectively kills a plan to launch Canada’s first mobile virtual network operator (MVNO). The Toronto-based company, which was the lead proponent of the plan, filed for bankruptcy last week.

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New financing potentially totaling US$15 million and cost-reduction measures should give Infowave Software Inc the necessary capital to meet its business plan during difficult financial markets, the company says. The Vancouver-based wireless software developer has secured a US$5 million credit facility and is close to landing another US$10 million private placement.

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SR Telecom Inc’s proposed acquisition of the French-based fixed wireless assets of its struggling competitor Lucent Technologies Inc would give the company a better presence in Europe and access to important European financing. The deal would also consolidate the Montreal-based company’s already dominant position in the rural telephony market giving it an additional 30 per cent market share.

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Industry Canada has launched technical tests to determine if more FM radio stations can be squeezed into spectrum-congested markets, particularly Toronto. Department officials won’t speculate as to how many new FM stations can be accommodated by reducing the space between each channel, but they doubt it will be as many as 16, as suggested in an engineering report prepared by Imagineering Ltd and submitted to Industry Canada in January (RoW, Feb. 5/01).

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Unique Broadband Systems Inc is willing to consider a merger or sale of certain assets to ward off a potential cash crisis in the wake of two senior resignations and the end of a major contract with Hughes Network Systems. The Concord ON-based company has enlisted a group of high profile directors, including former Prime Minister John Turner, to head a special committee to review operations and look at ways to "maximize shareholder value" (see box). UBS’ stock price has plummeted from a high last year of $17.85 to just $0.77.

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Flatlining wireless subscriber growth numbers are giving Canada’s wireless companies good reason to anticipate next-gen services even as most lower their future projections for the take-up of current technology, say industry observers. As new net subscriber additions generally fell short of expectations in the most recent quarter, some analysts suggest advanced wireless data services could be the answer to re-invigorate the industry.

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SaskTel buys RSL COM Canada
Provincial telco SaskTel has paid $17 million to acquire RSL COM Canada, which operates in British Columbia, Alberta, Ontario and Quebec. The current RSL staff will stay in place, president/CEO David Alsop reports. He expects a fair degree of autonomy from his new bosses in Regina. "They will be active at the board level, they will provide support at the management level if we need it," he tells Network Letter, "but they’re going to run it as an investment. We’re not going to be a division or a department." More details.

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