RoW Update

Microcell not ruling out merger with another telecom firmReports surfaced last week that Microcell Telecommunications Inc. is in talks with Call-Net Enterprises Inc.’s Sprint Canada. According to a Toronto Star article, the two companies are in discussions over a potential resale agreement, which would allow Sprint to resell Fido-branded mobile wireless services. André Tremblay, president and CEO of Microcell, didn’t rule out the possibility of a merger or some other form of business combination in an in-depth interview with Report on Wireless on June 10. Details of Tremblay’s detailed discussion about the Canadian mobile wireless industry and Microcell’s strategy going forward will be presented in a Q&A format in future issues of Report on Wireless.CRTC seeks comment on consumer bill of rightsThe CRTC has issued Telecom Public Notice 2003-6 seeking comment on issues related to the development of a consumer bill of rights. The commission originally raised the possibility of moving ahead with a consumer bill of rights (COBR) in the May 30, 2002 price cap ruling (Telecom Decision 2002-34).In that decision, “the commission indicated its intent to initiate a public proceeding to consider detailed submissions on a COBR’s content and related issues,” the CRTC writes in PN 2003-6 dated June 13. “This COBR will apply to regulated telecommunication services offered on a retail basis by the ILECs that are made parties to this proceeding.”Services provided by Aliant Telecom Inc., Bell Canada, MTS Communications Inc., Saskatchewan Telecommunications, Société en commandite Télébec, Telus Communications Inc. and Telus Communications (Québec) Inc. are subject to this public notice.Initial comments are due Aug. 27, 2003.Mitec and COM DEV end legal wranglingCOM DEV International Ltd. and Mitec Telecom Inc. have settled their legal tussle over a Dec. 19, 2001 asset and share purchase agreement. Mitec has initially sought $12 million in damages stemming from its purchase of certain RF conditioning and satellite ground station components business from COM DEV (RoW Update, Feb. 10/03). In reaching an agreement, COM DEV has agreed to pay Mitec nearly $1 million.RIM unveils new BlackBerry development environmentResearch in Motion Ltd. has upgraded its Java-based BlackBerry Development Environment to allow for over-the-air application deployment. There is also a new BlackBerry API, which allows application developers to leverage and integrate with email and PIM applications.“The new BlackBerry Development Environment for Java marks another important step in the evolution of BlackBerry as an open, secure, and global platform for push-based, wireless connectivity,” the company noted in a June 11 news release.TeraGo introduces new high-speed serviceToronto-based TeraGo Networks Inc. has introduced TeraGo Symmetrical Line Service (TSL), a new high-speed Internet access service that offers symmetrical upload and download speeds of 3 Mbps. “Businesses are demanding faster Internet connections than DSL and cable technologies can deliver, Bryan Boyd, president and CEO of TeraGo, said in a news release. “TeraGo’s wireless network offers affordable service with download and upload speeds faster than DSL.”The company is currently offering service to 800 customers in 13 Canadian cities and continues to grow at 30% per quarter. TeraGo noted that it is currently adding about 60 new business customers per month.Infowave brings new capabilities in-house, announces financingInfowave Software Inc. is adding customer side application development to its portfolio of service offerings through the acquisition of HiddenMind Technology. Bill Tam, Infowave’s executive VP of sales and marketing, tells Report on Wireless that the acquisition of HiddenMind allows Infowave to offer a more complete solution to enterprise customers by being able to build client-side applications.“Increasingly, we found that there are users looking for us to provide them with more of a turnkey solution. So the HiddenMind acquisition gives us the tools to do that,” he explains.The Vancouver-based firm is also shoring up its finances and has announced a total of $7 million in private placement deals in the last two weeks. The first agreement was announced with the acquisition of HiddenMind, while the second was announced on June 2.INTERNATIONAL NEWSWi-Fi gets speed boostWi-Fi networks, technically referred to as 802.11b, got a major boost in speed last week when the Institute of Electrical and Electronics Engineers (IEEE) approved an amendment to the protocol increasing the speed of equipment operating in the licence-exempt 2.4 GHz frequency band from 11 Mbps to 54 Mbps. The newly approved standard, 802.11g, gives Wi-Fi operators the ability to serve four to five times as many users than currently possible.“It also opens the possibility for using IEEE 802.11 networks in more demanding applications such as wireless multimedia video transmission and broadcast MPEG,” the IEEE noted in a news release announcing the approved amendment.Number portability can reduce churn, analyst saysWireless industry players have long talked about the pending doom from the implementation of wireless number portability, but one telecom analyst says there is a huge opportunity for carriers to reduce churn from number portability. Martin Dunsby, VP of operations at wireless consulting firm inCode Telecom, says despite what many consultants have described as the “nail in the coffin” for wireless carriers, there is considerable upside for carriers in reducing churn levels.Operators should study their subscriber data and then develop programs aimed at keeping their most valuable subscribers, Dunsby said in an email to Report on Wireless. “Carriers need to institute preemptive strike programs to prevent profitable customers from taking their business and their numbers with them. Wireless carriers should let unprofitable customers and their numbers go.”Public safety at odds with broadcastersPublic broadcasters are under heavy fire from representatives of the public safety community as the debate over spectrum availability continues in the U.S. House of Representatives. Emotions ran high as some representatives stated that broadcasters should be moved off valuable spectrum so public safety organizations such as fire, police and rescue agencies could communicate more effectively.“I’m disgusted with public broadcasters. They haven’t considered safety ahead of profits,” Curt Weldon, a republican from Pennsylvania, said during testimony.Movement on this front isn’t likely to happen quickly, though. Billy Tauzin, chair of the Energy and Commerce Committee, recognizes the frustration public safety advocates are experiencing, but notes that the transition to digital TV isn’t as simple as it sounds.

RoW Update

News | June 16, 2003

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