Vidéotron acquires Stream’s assets, needs approval for spectrum licences

Vidéotron Télécom ltée finalized the acquisition of Stream Intelligent Networks Corp.’s assets last week, including the Toronto company’s spectrum licences. As expected, there was no opposition to the acquisition, but the affiliate of Quebec-based cable operator Vidéotron ltée still needs regulatory approval from Industry Canada to gain control of the vault of 38 GHz spectrum licences. Stream, which paid more than $22 million for 92 licences covering every major serving region of the country (RoW, Nov. 29/99), was forced into receivership in late February when one of its financial backers, GE Capital Canada, pulled the plug on future funding (RoW, March 5/02). At the time, GE was owed about $13 million and raised doubts about Stream’s ability to continue to operate as a going concern. The next hurdle for Vidéotron is to get the regulatory go-ahead from Industry Canada. Andy Wilczinksi, senior VP at receiver PricewaterhouseCoopers, tells Report on Wireless that Vidéotron Télécom was well aware that it had to get approval from the department before it could gain control of the spectrum licences. For that to happen, both Vidéotron and the department have to come to a consensus on terms and conditions of the licences. According to Stream’s conditions for spectrum deployment, it had until January 20, 2003 to demonstrate that the spectrum had been put into use. It is still unclear, however, what Vidéotron plans to do with the newly acquired assets. Gaining control of the fibre laying robotic technology Stream had previously licensed may have been an incentive. As for the spectrum resource assets, that part of the company’s strategy has not yet been revealed. Representatives for the company were unavailable at press time. Vidéotron’s acquisition of Stream’s assets was first reported by RoW affiliate publication Network Letter on March 27. At the time, sources said the telco had hired some laid-off Stream employees on contract to keep operations going. The quick close to the Stream receivership situation is in stark contrast to other recent high-profile telecom failures, some of which have dragged on for more than a year. In the case of Norigen Communications Inc.’s receivership, sale of non-telecom assets has been brisk while little concrete interest has been expressed for the telecom assets. Norigen filed for receivership about six months ago (RoW Update, Aug. 27/01 and RoW, Sept. 4/01), and the receiver has yet to unload the spectrum resources. Maxlink Communications, which recently had its spectrum licences revoked by the department, went into receivership nearly 18 months ago (RoW, Dec. 11/00). The department worked with the receiver and a potential suitor to come to an arrangement concerning the terms and conditions of Maxlink’s massive spectrum holdings in the 28 GHz range. The deal fell through late last year (RoW, Feb. 5/02).

Vidéotron acquires Stream’s assets, needs approval for spectrum licences

News | 04/03/2002 5:00 am EST

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