Hotspot operators to discuss roaming agreements at meeting this week

Canada's three largest independent hotspot operators will be meeting in Toronto today (September 9) to discuss the development of roaming agreements, Report on Wireless has learned. Fatport Corp., Spotnik Mobile Inc. and BOLDstreet Wireless Internet were recently shunned from any participation in the mobile wireless carriers' decision to develop roaming and interconnection standards between their wide area wireless networks (RoW, Aug. 26/03). While Spotnik and BOLDstreet are approaching roaming issues in a more conservative manner, Fatport believes there needs to be more roaming in the industry. The Vancouver-based company will soon unveil details of its latest agreement. Despite having differing roaming strategies, the three emerging outfits believe that signing roaming agreements will go a long way to ensuring success for the Wi-Fi industry. "Everyone needs to wake up and participate and stop containing possible growth," Sean O'Mahony, president and CEO of Fatport, tells Report on Wireless. "The market is too small to be fighting over. We've got to work together and allow a customer from one network to roam to another and that's what provides the utility the customer is looking for." Spotnik's co-CEO Mark Wolinsky is equally strong in his support for roaming. "I think you'll see the big three independent Wi-Fi operators in Canada forming an alliance in the very near future," he tells RoW. There have been signs that the three companies were getting closer to working together on the roaming front. Two weeks ago, they signed separate agreements with Sony of Canada Ltd. to provide service for the Sony Clie PEG UX50 (the three agreements were announced in a single August 26 news release). Asked whether this deal signified a first step towards a roaming or interconnection agreement, Wolinsky states, "I think you could certainly view it as a step in that direction. I don't think that outwardly it is in fact a roaming agreement by any stretch of the imagination, but I think it certainly is a step in that direction." Tom Camps, president of BOLDstreet, was more vague. "The interesting thing is that the three vendors Sony is participating with cover off the vast majority of commercial hotspots in Canada and I think that's an important point to make," he says. Some hotspot operators miffed over carrier announcement The three hotspot operators generally praise the recent decision by Canada's four national wireless operators to integrate their systems, but some wanted to see more meat in the announcement. Both BOLDstreet and Fatport regard the announcement as a non-announcement because nothing of substance was provided in the news release. While BOLDstreet's Camps believes that, in general, the move is positive as a validation of the industry, he cautions the wireless carriers that they need to implement a model that has sustainable and recurring revenue. "Some people consider hotspots like laundry mats and want to build out a chain and they're going to harvest quarters in the washers and dryers. There has to be more to the business than harvesting the quarters. It's got to be more along the lines that the hotspot providers have an asset that is our network and if (the wireless carriers') users want access to the network this is what it costs," he explains. "We'll have to wait and see what happens, but it's in our interest and in the interest of our competitors and our partners to get involved in the process to make sure that it's meaningful on the street," he adds. O'Mahony agrees with Camps that the wireless carriers' roaming agreement is a positive step forward. "The good news is that they're making an announcement about Wi-Fi, which we think is a very positive step and … hope that their coming into the market is a good thing." But the head of Fatport goes so far as to say this announcement doesn't matter. "We've been trying to work with them (the wireless operators), but announcements like this don't really help anyone," he says. Spotnik is significantly more upbeat about the carriers' announcement, though. The Toronto-based hotspot provider may have reason to be so because it has received funding from Telus. "We see this as a great step in that direction with the four carriers getting together and laying the foundation for some common standards by which their customers will roam onto these hotspots. We think that it's great and it's great for the entire market and will help drive growth," Wolinsky tells RoW. "I think the small players - they'll have the opportunity to participate. We'll have the opportunity to participate equitably," he adds. It's unclear at this point whether the independent Wi-Fi players will be part of the development process. The Canadian Wireless Telecommunications Association and the four national operators put out a news release explaining their partnership in this area. The August 21 news release announcing the wireless carrier cooperation didn't mention working with the independent wireless operators and only mentioned that the mobile wireless industry is working within its own confines. The carriers plan to have definitive standards and agreements in place by the end of this year, allowing for implementation in 2004. "This agreement is expected to pave the way for future interoperability between carriers' wireless data networks and their Wi-Fi hotspots providing seamless integration of both technologies. This would enable customers to connect to the wireless network (depending on their physical proximity to a Wi-Fi hotspot) that would best serve their wireless needs," reads the news release. Camps says there could be competitive issues involved and that's why the independents should be part of any larger agreements. "Whether there is overt anti-competitive behaviour or it is by accident, these things create new laws of physics as they go and that worries me, which is why I think it's a mistake that they are not including the BOLDstreets in these discussions. But it's early days," he says. Wolinsky says that Spotnik's relationship with Telus does give it an advantage in terms of any competitive pressures. "I believe that our relationship with Telus does help us to some extent with respect to that agreement, but also the fact that we're still an independent gives us the opportunity to work through other partners and players in the industry on a more independent basis."

Hotspot operators to discuss roaming agreements at meeting this week

News | September 9, 2003

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