Suite Systems abandons BDU plans due to costs, pole access problems

Calgary-based Suite Systems Inc. abandoned its plans for an IP-based television distribution service due to a downturn in the markets and its inability to gain access to utility poles that would bring fibre to its buildings, according to VP of operations Michael Guyette. "We shut down for two reasons: the financial markets aren’t what they used to be and, as you know, we had trouble getting access to the poles to connect to our wired units," Guyette tells Canadian Communications Reports. According to parent company Boardwalk Equities’ annual report of last year, Suite Systems wrote down close to $40 million as a result of its failed venture into television distribution. Guyette would not elaborate on the financial analysis that led to the decision to shut down, nor on what it had estimated the capital costs would be of rolling out the television service across the country. The last 34 Suite Systems customers were converted to a competitor, which Guyette would not name, at the end of August. Suite Systems’ battle to gain access to poles to connect to the buildings it had wired on the inside was evident early in the process. Back in February 2001, after Suite Systems had completed a small pilot of its television service, financial analysts quizzed company officials during an investors conference call on the fact that no contracts had been signed with municipal electric utilities (CCR, Feb. 1/01). In the summer of 2001, Suite Systems filed a Part VII application with the CRTC asking it to resolve the problem it was having gaining access to the poles (CCR, Aug. 15/01). A decision on that complaint has not yet been released by the CRTC. In September, Suite Systems submitted an application to the CRTC to have its broadcasting distribution undertaking (BDU) licence revoked. Approval was granted in October (CCR, Oct. 24/02). CCR was only able to reach Suite Systems this month.

Suite Systems abandons BDU plans due to costs, pole access problems

News | 12/13/2002 5:00 am EST

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