Craig Wireless requests another delay to roll out wireless cable system in B.C.

Equipment delays have forced Craig Wireless International Inc. to ask the CRTC to grant it yet another delay for the deployment of wireless cable services in British Columbia. But while the company has requested that the deadline for implementation be pushed back to December 31, 2002, a commercial launch of its B.C. wireless cable system could happen as early as next month. "There’s been a request (for an extension) put in, but we’re hoping not to actually go beyond the end of August," says Craig Wireless CFO Darcy Kindred. "I’m actually moving out to Vancouver September 1 and I’d like to have the service available for me (when) I get on the ground there." SkyCable Pacific Inc., Craig’s wireless cable subsidiary in B.C., was to have begun offering commercial multipoint distribution system (MDS) services in five major communities in the country’s westernmost province last July (RoW, July 24/00), but was given a one-year extension by the CRTC (RoW, Aug. 21/01). That implementation extension was to have provided Craig Wireless enough time to raise up to $10 million in financing and find partners to assist in the rollout of its wireless cable system. In asking for an additional delay, the company notes in a July 3 letter to the commission that "this (the extension) will assist us in the event of unexpected or unavoidable delays relating to the installation and implementation of the equipment in British Columbia." Speaking for Craig Wireless, Jennifer Strain, Craig Broadcast Systems Inc.’s VP of corporate and regulatory affairs, says a problem with getting the necessary equipment from its primary vendor on time has forced SkyCable Pacific to alter its implementation schedule again. It is still unknown whether the CRTC will heed the company’s July 3 request, but Strain doesn’t foresee any problems with the new proposed deployment date. "We’re hoping (the extension) is going to be until December 31. I’ve had conversations with the commission and I’m led to believe that December 31 will be okay, but I’m still waiting for the confirmation," she tells Report on Wireless. At press time, the commission had not yet released its decision. While the CRTC has been known to usually rubberstamp these types of applications, some are speculating the commission has had enough of Craig’s delays and could deny the extension application. Funding nearly done, partners in place With commercial launch targeted for as early as August, Kindred says almost everything is in place. The company will initially partner with the Canadian Broadcasting Corp. to co-locate with its tower on Mount Seymour. SkyCable Pacific is also hoping to work with another company that has a number of tower sites in the region. Kindred declined to name that outfit. On the funding side, Kindred admits that the souring of the markets for anything related to telecommunications made it difficult to go that route to raise money for the deployment. "We’ve actually moved around some monies internally to come up with the funds we need to launch (services)," he explains, adding that an equity partner agreement is currently in the works. Kindred wouldn’t reveal further details of the potential equity partner. "We’ve also been working on a number of equity deals and, not to hex ourselves, but we think that we’re going to be bringing on board a substantial and knowledgeable equity partner," he tells RoW. "We got some good word earlier (last week), so I think we’ve found a good partner." The CRTC awarded SkyCable Pacific the MDS licence two years ago, favouring its application over that of Look Communications Inc. (RoW, July 24/00). In the comparative review, the MDS licence would have given Look a near-national footprint to compete against the larger cable and satellite TV players. In Decision 2000-220, the commission stated that free installation was one of the mitigating factors in awarding SkyCable the licence. "(It) eliminates a significant barrier that discourages potential customers from considering MDS as an alternative to cable or DTH satellite services," the commission noted in Decision 2000-220. At the time of the decision, Look wasn’t too concerned that it lost out on the licence since it had a 50 per cent stake in Inukshuk Internet Inc., which is planning to roll out high-speed Internet access in 12 of 13 serving areas across the country. "Not receiving the MDS licence for BC will in no way hamper our efforts or in any way delay implementation of our plan. Indeed our business plan does not assume that we would be granted the BC MDS licence," Look’s former president and CEO David Parkes stated at the time. Look has since undertaken a major restructuring that saw it sell its 50 per cent ownership in Inukshuk to Microcell Telecommunications Inc. The Milton ON-based firm has recently emerged from creditor protection and restarted sales and marketing activities (RoW Update, Feb. 11/02 and Dec. 17/01). High-speed Internet in future service offerings Besides offering digital TV services, SkyCable Pacific also plans to offer high-speed Internet access to its subscriber base, as its Manitoba affiliate does. It will use equipment produced by IPWireless, which also underwent a lengthy trial and testing with Inukshuk Internet. Kindred wouldn’t reveal the terms of the supply contract only to say that it is in the few million dollars range. "The number one priority is to get the video service up and running and get into the market with that (service) and then follow up with the data product in the fall," Kindred explains.

Craig Wireless requests another delay to roll out wireless cable system in B.C.

News | July 22, 2002

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