CCR Update

January 22, 2003

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RoW Editorial

The opinions expressed in this editorial are those of the author and do not necessarily reflect those of Decima Reports.
 

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RoW International Short Takes

Companies team for wireless interoperability work
Motorola Inc., Proxim and Avaya have joined forces to develop technology that will enable greater interoperability between varying wireless networks. This could mean that a data download beginning over a wireless network in Starbucks won’t be interrupted when the consumer moves within range of the corporate network. There are enormous technical hurdles to overcome if this is going to become a reality. The move has been described as the most ambitious wireless roaming initiative to take advantage of the expanding use of Wi-Fi networks. In other Motorola news, the U.S. company unveiled details of its new wireless application developer program, dubbed MotoCoder. The program was kicked off in Shanghai, China and is designed to be the driver behind the company’s ongoing application development program. Motorola also used the city as a venue to introduce a whole range of new handsets as it celebrates the 20th anniversary of its first commercial mobile phone.

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RoW People

Dawn Hunt, VP government and inter-carrier relations at Rogers Wireless Inc., has been elected as chair of the Canadian Wireless Telecommunications Association (CWTA) effective immediately, replacing Ted Maksimowski, former president of Bell Mobility Investments (BMI). She was previously a vice-chair of the CWTA. Hunt’s career spans 25 years in the Canadian telecommunications industry having served with Rogers since 1994. Prior to joining Rogers, she spent 16 years at Unitel Communications (now AT&T Canada). Maksimowski left BMI in December to pursue other interests and therefore couldn’t remain chair of the CWTA.

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RoW Short Takes

UBS and Craig take stakes in Look Communications
Unique Broadband Systems Inc. (UBS) and Craig Wireless International have purchased significant ownership stakes in Look Communications Inc. UBS bought a 20% stake in Look for approximately $2.4 million, while Craig purchased about 30% of Look for nearly $2.9 million. UBS and Look had previously tried to complete a deal last year (RoW, Aug. 19/02). Under that deal, UBS was to have invested $5 million in Look for a 9% stake. UBS could have increased its stake to 23% if it converted a debenture. However, that deal was pulled off the table last year. The UBS transaction was completed through a private placement. Craig is seeking to acquire a further ownership stake in Look, but that needs CRTC approval.

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Canadians continue to oppose foreign control of telcos: Decima survey

The percentage of Canadians opposed to foreign control of domestic communications companies including telcos increased over the past 18 months, according to a new survey conducted by Decima Research Inc. for Decima Publishing Inc. The latest research could become a focus of debate when the House of Commons Standing Committee on Industry, Science and Technology begins its review on foreign ownership restrictions in the telecom sector on January 27. Industry minister Allan Rock announced the review last November (RoW, Nov. 25/02).

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Wireless industry lobby group urges second lawful access consultation

The Canadian Wireless Telecommunications Association (CWTA) believes the federal government’s current consultation process on lawful access to information and communications is flawed because the consultation document lacks critical information needed to have any meaningful discussion. The flaw, as the CWTA sees it, is the omission of certain definitions, which severely hampers its ability to provide constructive comments.

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New Microcell strategy focuses on easy customer acquisitions, high growth areas

Microcell Telecommunications Inc. has discontinued its wholesale business, scaled back corporate market activities and is now focused almost entirely on the consumer retail market as it fights to survive in the highly competitive wireless telecommunications sector. Earlier this month, the struggling wireless operator reached an agreement with its bankers and noteholders on a recapitalization plan that will keep the Montreal-based company solvent. The agreement was unveiled on January 6, the same day the company filed for protection from creditors under the Companies’ Creditor Arrangement Act (RoW Update, Jan. 13/03).

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Ban on using handheld cell phones while driving likely limited to Newfoundland

The Canadian Wireless Telecommunications Association (CWTA) doesn’t plan to alter its safe driving education campaign following Newfoundland and Labrador’s passing of a bill banning the use of handheld cell phones while driving. Passed on December 19, the law will give the province’s police officers the right to levy $45 to $180 fines and will cost drivers demerit points on their driver’s licence. The new law is expected to come into effect in late March or early April.

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CWTA to use spectrum licence review to relay message of high fee level

The chief lobbyist for Canada’s wireless telecommunications industry plans to use a new consultation on the current spectrum licensing and fee regime to bolster his message that the sector pays too much money in spectrum licence fees. Peter Barnes, president and CEO of the Canadian Wireless Telecommunications Association (CWTA), says the level of fees paid by the four national wireless operators is unreasonable and could be considered excessive. According to CWTA figures, Canada’s wireless industry pays about $10 per subscriber in spectrum licence fees compared to the U.S. industry, which pays approximately $0.40 on a per subscriber basis.

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