Telus plans to phase out CDPD wireless data services within next several years

Telus Mobility plans to phase out its analog CDPD wireless data network and migrate the network’s users to either its Mike or CDMA 1XRTT wireless networks within three years. The company hasn’t yet finalized its phase-out plans, but a company executive tells Report on Wireless that it is simply following the lead of other wireless operators that have CDPD networks. In the U.S., AT&T Wireless has announced plans to shutter its networks in mid-2004 and Verizon Wireless has also said it will shut down its network, but an exact timeframe has yet to be announced. Bob Petrovic, manager of mobile computing for Telus Mobility’s business/enterprise division, says there are still several considerations to mull over. The company is looking at two possibilities that would eventually see CDPD customers move onto the Mike or CDMA 1X networks. One is to follow AT&T’s lead and turn the lights off on its network in 2005 or leave the network in place until the 2006/2007 timeframe. "What we’re sizing up now is (whether) we have a shorter time line for running that network and run migration programs for our customers to move them onto one of those two other networks, or run that network as long as we possibly can and allow ourselves to max out the capital investment in that network," he tells Report on Wireless. While the company hasn’t yet made a decision, it is leaning towards decommissioning the network in 2005, Petrovic says, adding that timeframe "gives our customers a good two and a half years to plan a migration and to start moving things across to (other networks)." Mike network still key, but 1X is the future The Mike network will remain a key part of Telus Mobility’s wireless data plans for the near future, according to Petrovic. But eventually, all services will be migrated up to the company’s 1X network, he notes. The company’s CDMA 1X network was launched this summer (RoW Update, June 3/02). "What we’re in the process of doing right now is developing 1X services that will allow Mike and CDPD customers to move onto that network because there are certain economies of scale and coverage advantages of being on that network," Petrovic explains. Rogers standing pat with Mobitex network and services While Telus Mobility is phasing out its dedicated wireless data network, there are no such plans in the works for Rogers Wireless Inc.’s Mobitex network. The Toronto-based wireless operator is operating a healthy business on the network with approximately 65,000 active devices of various sorts on the network. "To paraphrase a well-known quote, ‘rumours of its demise have been greatly exaggerated,’" David Neale, VP of new product development at Rogers, tells RoW. Two new Mobitex networks have been turned up in China, Neale notes, adding that the Mobitex network is experiencing a renaissance of sorts in many parts of the world such as Europe, Korea, Hong Kong and Australia. Cingular Wireless, a U.S.-based wireless operator, has approximately 1 million users on its Mobitex network. Many had predicted the fall of Mobitex a couple of years ago following an announcement from Motorola Inc. that demand for its Ardis network was waning. Neale says that simply wasn’t the case as Ericsson, which developed the Mobitex network, proceeded to announce new orders for the network. Asked how long Rogers would continue to operate its Mobitex network, Neale responds that he doesn’t know. "If you look at it from a pragmatic point of view, you continue to operate a network as long as a) there is revenue that exceeds the cost of operating the network and b) maintenance of the network does not become onerous," he explains.

Telus plans to phase out CDPD wireless data services within next several years

News | 12/09/2002 5:00 am EST

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