RoW Update

Department releases competition review of mobile wireless industryIndustry Canada has released a study on competition in the Canadian mobile wireless industry in preparation of a pending release of spectrum for advanced wireless services, otherwise known as third generation, or 3G. The study, A Competitive Assessment of the Canadian Mobile Wireless Industry, prepared by Wall Communications Inc., is part of the background work the department is doing to prepare the policy framework for the licensing of 3G spectrum. "The study is intended to provide the ministry with a better understanding of the market forces impacting the mobile wireless industry and to assist in evaluating the potential impact of different policy provisions on future spectrum licensing," the report states. More details. Microcell could get downgrade from Dominion Bond Rating ServiceDominion Bond Rating Service (DBRS) is worried that Microcell Telecommunications Inc. is falling farther behind its much bigger rivals and could, as a result, downgrade the Montreal-based company’s senior unsecured notes and debentures. As a warning, the credit rating agency put those notes and debentures "under review with negative implications."In its brief, DBRS writes that several factors have contributed to this action against Microcell’s credit. "This action reflects DBRS’s concern relating to the following issues: (1) a greater reduction in subscriber growth than anticipated (most recently in the fourth quarter of 2001); (2) greater financial risk expected to be placed on the current business model increasing the likelihood of not reaching free cash flow break-even as anticipated; (3) a steady decline in average revenue (ARPU); and (4) the possibility that significant shareholders like Deutsche Telekom have limited incentive to offer further support to Microcell as they are: (a) restricted from taking a controlling interest by foreign ownership limitations; and (b) focused on their own credit concerns and reducing their debt levels," the credit agency wrote in a March 7 release. More details. CRTC orders better services for visually impaired at reseller levelThe CRTC has ordered telecommunications carriers, including wireless operators, affiliated and unaffiliated resellers, to provide alternative billing formats, rate information, and terms and conditions of service upon request to subscribers and potential subscribers – Telecom Decision 2002-13. On the wireless side, the issue came to a head about 18 months ago when Chris Stark filed a Part VII application with the commission (RoW, March 5/01 & Sept. 5/00). In his application, he asked the CRTC to require Microcell Solutions "to provide equal and equitable service to a customer who is blind, as required by the Telecommunications Act." Stark, a longtime advocate for the blind on telecom and broadcasting issues, has made numerous submissions to the CRTC over the years.In Decision 2002-13, dated March 8, the commission stated that both affiliated and unaffiliated resellers should provide the same level of service as it required the carriers to do in the previous decision. WaveRider introduces two new wireless access starter kitsToronto-based WaveRider Communications Inc. has launched two new starter kits for its LMS wireless Internet access products. It has added 2.4 GHz and dual band versions to its roster of products. Both starter kits are complete with wireless Internet access systems that are designed for the roll out of high-speed services to businesses that can’t currently access high-bandwidth services. This new line of starter kits capitalizes on the success of the first version introduced in January. "The family of LMS starter kits now available offers solutions to deliver high-speed wireless access to large, medium and small business, home offices and residential subscribers, all at entry-level prices," Charles Brown, WaveRider’s VP of sales and marketing, said in a news release. The 2.4 GHz starter kit is priced at US$7,695 and delivers 11 Mbps connection to commercial Internet subscribers, while the dual band version, priced at US$13,995, delivers 11 Mbps speeds in a line-of-sight configuration and 2.75 Mbps for non-line-of-sight networks. More details. Infowave more than doubles revenue for 2001Infowave Software of Vancouver posted an impressive increase in revenue last year. According to its figures, the company recorded a 111% per cent increase over revenue posted in 2000 growing to nearly US$3.2 million from 2000 levels of a little more than US$1.5 million. Its core enterprise software business accounted for more than 80% of total revenue, increasing from 43% of 2000 revenue. Infowave noted in a news release that 2001 was a challenging year for wireless data, and forced the company to alter some of its strategies. But the Vancouver firm maintains that it has emerged from the last year in a healthy state and is well positioned going forward. "Infowave also secured funding in November, which ensures that the company is capitalized through 2002. We believe this combination puts us in a strong position to lead the market as adoption increases," Infowave CEO Thomas Koll said in a release. More details. Mitec posts strong increase in top line growthMontreal-based Mitec Telecom Inc. has recorded strong revenue growth in the third quarter and nine-month period ending Jan. 31, 2002. Q3 revenue grew to $23.4 million, a nearly 75% increase over the third quarter of the previous year. Revenue for the first nine months of the fiscal year increased to more than $90 million. "The healthy increase in year-to-date sales is the result of the aggressive acquisition strategy the company has pursued over the past 14 months and the continuing growth in wireless sales in those segments where MITEC-BEVE has recognized expertise," the company stated in a news release. Most recently, Mitec completed the acquisition of certain assets from COM DEV International for about $23 million, which have contributed significantly to the top line (RoW Update, Feb. 25/02 & Jan. 14/02). More details. netPCS lays off majority of employeesOttawa-based netPCS Networks Inc. has laid off the majority of its staff, according to reports in an Ottawa-based business publication. The Ottawa Business Journal reports that the maker of products used to manage voice, wireless, and email over a single network had failed to finalize terms of a new round of financing and had no other option but to lay off most of its staff. The company had last received an infusion of funding two years ago. Prior to the layoffs, netPCS had more than 100 employees working in offices in Hull QC, Kanata ON, New York, Los Angeles, and the United Kingdom. According to netPCS’ web site, the firm seemed to be performing well. The following is highlighted on the corporate overview section of the web site: "In a period of less than six months, netPCS has gone from $0 to $6 million run-rate, 0 to 14 million users, with 2500 corporate clients using netPCS product in more than 33 countries throughout the world." There is no word on if or when the company will file for bankruptcy. More details. INTERNATIONAL NEWS VoiceStream and MobileStar brand names to disappearNow that VoiceStream Wireless Corp. has begun to absorb the assets of defunct MobileStar Networks, the U.S. wireless operator’s parent company, Deutsche Telekom, plans to unite all of its wireless offerings under the single brand of "T-Mobile". By the end of this year, VoiceStream will begin to market MobileStar’s wireless LAN services under the T-Mobile brand, and over the course of this year, Deutsche Telekom will also begin to phase out the VoiceStream brand. It will be replaced by the "Global Wireless by T-Mobile" brand. In a filing with the Securities and Exchange Commission, the company wrote: "We plan to phase out the VoiceStream brand over the next year, forming a cohesive international wireless brand using the T-Mobile name." More details Cell phone sales decline for first timeGlobal sales of cell phones decreased last year, marking the first decline in the industry’s history, according to numbers released recently. Research firm Gartner Dataquest says cell phone sales dipped below the 400-million mark to 399.6 million units. That’s a far cry from the 60 per cent annual average growth rate of cell phone sales between 1996 to 2000. Senior Gartner analyst Bryan Prohm told Cnet News that there are many reasons why the industry has had a setback: sales were affected by market saturation in Europe, and the lifting of cell phone subsidies, among others. But, more importantly, handset makers failed to introduce newer devices with greater functionality to convince consumers to give up their older handset for a fancier more expensive one. More details. Pringles can used to locate wireless networksSecurity firm i-sec has found that by using an empty can of Pringles, hackers can locate networks that are open to attack. The company recently drove through the financial district in London U.K. and attempted to crack the security of wireless networks and determined that about two-thirds of them based on the Wi-Fi or 802.11b standard were vulnerable.While these types of networks have security built in, the encryption system is not turned on when the basic hardware of the network is set up. In its informal survey, the company found that 67% of the networks had the encryption turned off, Geoff Davies, managing director of the firm, told the BBC. Additionally, during the company’s 30-minute drive through the district, it found nearly 60 wireless networks. More details.

RoW Update

News | 03/11/2002 5:00 am EST

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