RoW Update

Rogers Wireless introduces new “no worries” planRogers Wireless Inc. will offer new subscribers three months of calling at a flat rate for all types of calls while it tracks users’ calling patterns. Following the three-month period, the wireless carrier will then recommend the most appropriate package for that customer, hopefully mitigating customer uncertainty over which plan to buy. “Choosing a wireless airtime plan used to be very confusing for those customers who are buying a wireless phone for the first time,” Rogers Wireless’ VP consumer marketing John Boynton said in a news release. The new “No Worries Starter Service” is available from May until June 16. NSI revises lending agreementsNSI Global Inc. has negotiated revisions to its loan agreements with its bank and a secured lender. The Montreal-based company is also in discussions with its other lender, a government agency, and believes it can reach a satisfactory agreement in the near future. As part of the agreements, NSI has paid $1.75 million to the lenders. A balance of $1.2 million remains outstanding with the secured lender, but will be repaid in 18 equal monthly payments starting in October 2003. A non-revolving loan of $1.9 million, which is the residual balance of NSI’s broadband business unit’s bank borrowings, remains outstanding with the bank.NSI Global has also announced that its Vistar Telecommunications Inc. subsidiary has licensed technology to Aether Systems Inc. for net proceeds of $2.3 million. Vistar has also sold inventory associated with the satellite communications technology for $1.3 million. Aether has been granted a limited perpetual licence to the technology. “As a result of this agreement, Vistar will no longer be involved in the manufacturing of products using this technology. This will mean a substantial reduction in our revenue, however, ongoing gross margins will be higher than they otherwise would have been and net results in 2003, including the gain from this transaction, will also be higher than they otherwise would have been,” NSI president and CEO David Ben-David said in a news release. Plaintree to showcase new products at AGMPlaintree Systems Inc. will demo two new products for the telecom and metro markets at its annual general meeting on May 6 in Ottawa. The 4xE1/T1 is a new addition to the WaveBridge product line and offers telecom operators an alternative to RF-based systems. It provides four simultaneous E1 or T1 lines with a single link. The WaveBridge 400 series, which addresses the metro area network market, offers speeds from T1 to 155 Mbps at up to 1 kilometre. The Ottawa-based free-space optics (FSO) product maker has been struggling to sell product since it moved into the space two years ago. However, the new products appear to bolster the company’s potential for making sales. “For the first time in a year, we have new customers approaching us and indicating serious interest. We are doing everything we can to ensure that when these users are ready to begin material orders, Plaintree is their supplier of choice,” Plaintree president and CEO David Watson said in a news release. AirIQ posts strong year-end financial resultsToronto-based AirIQ Inc. has reported strong year-end financial results showing a 120% increase in revenue for the period ending Dec. 31, 2002 compared to the previous unaudited 12-month period. The company altered its year-end date following the acquisition of eDispatch Wireless Data Inc. last year.Gross profit for the fiscal year was $2.25 million compared to $362,000 for the eight-month period in the previous fiscal year. As a percentage of revenue, gross profit was 38.2%. On a quarterly basis, gross profit skyrocketed by more then 330%, jumping from approximately $180,000 for the quarter ending December 2001 to more than $775,000 for the quarter ending December 2002. The monthly average revenue per unit (ARPU) is also increasing as AirIQ adds more services and expands its commercial transport customer base, it noted in a news release. At year-end, ARPU was $25.10. Telesat posts stronger earnings for Q1BCE Inc.-owned Telesat Canada posted higher revenue in Q1 2003 compared to the previous year’s first quarter, according to financial results released by the satellite carrier last week. Telesat’s top line rose to $79.2 million in this year’s first quarter from $77.2 million in the same period last year. Net earnings increased dramatically, rising from $12.6 million in Q1 2002 to more than $22 million in Q1 2003. In addition to a remarkable financial quarter, the company had a highlight-reel quarter operationally. It signed a research and development agreement with Storm Internet Services to build a terrestrial wireless and satellite system to showcase and test the viability of delivering broadband Internet services to rural and remote areas. Other highlights include the signing of a contract with Astrium to build a replacement satellite for the failing Anik F1. The Anik F1R will be launched in 2005. Telesat also inked an agreement to launch the new satellite with International Launch Services. ICO Global acquires GlobalstarLate last month, the U.S. Bankruptcy Court in Delaware approved the acquisition of control of Globalstar LP by ICO Global Communications Ltd. This agreement supercedes a previous proposal by Thermo Capital Partners to purchase the struggling satellite services provider. Under terms of this agreement, a new company controlled by ICO purchased Globalstar’s assets for an investment of $55 million. In return, ICO gains a 54% controlling stake in the new operating company. This deal also brings to an end months of struggle for Globalstar, which in January had apparently reached an agreement with New Valley Corp. only to have it pulled out from under its feet (RoW, Feb. 4/03). “We believe that the $4 billion spent this far on Globalstar, however, will result in useful services for governments, corporations and communities around the world. We like the Globalstar system architecture and see this as a turning point for the MSS industry and for Globalstar in particular,” ICO chair Craig McCaw said in a news release. INTERNATIONAL NEWS Cell phone spam could be a damaging virusAT&T Wireless subscribers are indicating a text message could actually be a potentially damaging virus, which wipes out text-messaging capabilities and the user’s address book, reports out of the United States are saying. According to CNET News.com, subscribers reporting problems each owned a Siemens S46 model cell phone. It is unclear whether this is a targeted attack, but it is probably one of the first of its kind in the U.S. The S46 uses the same software as two other Siemens models that were disabled in March by possibly malicious emails. Antenova to target handset and Wi-Fi marketInnovative antenna developer Antenova has announced that it will be aggressively targeting the high-volume handset and Wi-Fi markets. The move comes on the heels of the appointment of Greg McCray as CEO, who would like to accelerate the company’s push into these two lucrative areas. “We’ve made significant traction in both markets with clients and hope to be in a position to announce a deal with a major handset provider very soon,” McCray said in a recent media advisory.(Note: An online version of the media advisory was not available at press time.) Two executives spar over Wi-Fi potentialSky Dayton and Irwin Jacobs took verbal jabs at the potential for Wi-Fi technology in two separate interviews with BusinessWeek reporter Arlene Weintraub. Dayton, of Boingo Wireless, described Wi-Fi as a major opportunity, while Qualcomm’s Jacobs labeled it unbridled hype. An edited Q&A with the two is available here.

RoW Update

News | May 5, 2003

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ISED spends $73 million on two fibre projects in New Brunswick

CRTC says wholesale access is having ‘positive impacts’ amidst job losses, spending cuts in telecoms sector

FCM calls for greater cell and internet coverage in north

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