ROW Short Takes

The above chart demonstrates that Rogers Wireless Inc. experienced a strong first quarter of 2004 as well as a combined first half of the year. In its financial results, the company notes that its post-paid subscriber net additions increased 16.6% compared to the second quarter of last year. In addition, post-paid subscriber churn fell to 1.76%. For the three-month period ended June 30, 2004 Rogers Wireless had a post-paid average revenue per user (ARPU) rate of $59.20, compared to $56.78 for the same quarter in the previous year. In the first half of 2004, the company posted an ARPU of $57.49 compared to $55.56. On the wireless data revenue front, the company pulled in about $30 million with an even split between consumer and business users. SMS revenue was about $7 million or about 25% of total wireless data revenue. Picture messaging is well positioned and will continue to grow following the company’s agreement with Lightsurf earlier this year. Nadir Mohamed, president and CEO of Rogers Wireless, said during a conference call that the company is really focusing on retention and has avoided competing on price. He notes that retention costs were 7% of revenue compared to 6% in last year’s Q2. Chart Source: Rogers Wireless second quarter financial results. Comment period for MDS spectrum review extendedIndustry Canada has extended the period for comments on its review of the 2500-2690 MHz band following a request by the Radio Advisory Board of Canada (RABC). The comment period has been extended from Aug. 9 to Oct. 1 (RoW, May 19/04). The RABC wrote in a July 14 letter to the department that it was unable to prepare a full slate of comments because the Federal Communications Commission has yet to publish rules for the 2495-2690 MHz band. "The details in the full text of the R&O may have a material effect on our deliberations in Canada outside of the band plan described in the FCC’s press release, and it is difficult to provide a complete response without reviewing the R&O," wrote the RABC. The department agreed that it would be difficult to provide a full response to its notice without the details of the FCC’s order. As a result, Industry Canada set Oct. 1 as the new deadline for comments. TELUS extends offer for Microcell TelecommunicationsTELUS Corp. has extended for another month its offer to acquire all the issued and outstanding shares of Microcell Telecommunications Inc. The offer was set to expire on July 22, but the incumbent telco decided to give Microcell stockholders an additional month to think about the proposed transaction. As of July 22, 288 class A restricted voting shares, 15,785 class B non-voting shares, 71,917 Warrants 2005 and 51,080 Warrants 2008 of Microcell had accepted the offer. Just one day before the offer was extended, Microcell told its shareholders that it continued to receive inquiries from both domestic and international parties and has entered into confidentiality agreements with a number of interested parties. A July 21 news release reads: "The company has also provided bid documentation to potential interested parties to facilitate alternatives to the TELUS offers. This may result in negotiations regarding a sale of the company to TELUS or another party, an equity investment in the company by a strategic or financial investor, the separation of certain assets of the company, or some combination of these alternatives." Rogers Wireless to bundle Wi-Fi with mobile servicesVP of business development at Rogers Wireless Inc. David Robinson told a conference last week that the company will have a bundled Wi-Fi/mobile wireless service package next year. Speaking at the Wireless & Mobile WorldExpo, he said that a service offering won’t likely be available before 2005. This news shouldn’t come as a big surprise since all of Canada’s national operators are looking for ways to gain incremental revenue from data services. In other Rogers Wireless news, the company announced that AT&T Wireless was unable to sell its 34% interest before the expiration of a 60-day period as was permitted under a shareholders’ agreement between the two companies. CityTel files for forbearanceCityTel Mobility Cellular has asked the CRTC to forbear from regulating its service. In a July 9 letter to the commission, the regional wireless operator cites Telecom Order 98-19 and 2001-501 as evidence in support of the company’s application. "… the commission has refrained from the regulation of cellular service providers where a competitive environment either exists or is likely to exist. CityTel currently is the sole provider of cellular service but open to the market for cellular competition. Also in prior forbearance decisions, the commission has refrained, with some conditions, from regulating markets where mobile voice wireless telecommunications services are connected to the public switched telephone network," the company writes referring to Telecom Order 2001-501. Mobileway and ZIM launch premium SMS web portalOttawa-based ZIM Technologies and Mobileway of the U.K. unveiled their premium SMS self-service web portal on July 20. The two companies indicate in a news release that the new portal addresses three key issues for business looking to generate revenue from premium SMS services: price, ease of use and flexibility. "This breakthrough, web-based service eliminates hefty setup charges and does require users to do any complex programming. This reduces the barriers to entry for many businesses and simplifies the process for those already using premium SMS," reads a July 20 news release. Inukshuk inks deal to bring broadband to Quebec northInukshuk Internet Inc. has signed an agreement with the Kativik Regional Government KRG) to build out a broadband wireless access network that will eventually serve 14 Inuit municipalities in Northern Quebec. "This agreement ensures that the network will be owned and deployed by the Inuit, and that its benefits will be enjoyed by the Inuit. The network will contribute significantly to the economic development of the communities in Quebec’s north, as well as to the integration of our administrative infrastructures as a whole," Joe Lance, director of the administration department for the KRG, said in a news release. Microcell and Danger expand hiptop technical capabilitiesMicrocell Solutions Inc. and Danger Inc. have announced the commercial availability of an enhanced hiptop handheld wireless device that can now operate in more than 50 countries with which Microcell has roaming agreements. Additionally, the hiptop is equipped with new capabilities that allow the device’s user to download ringtones from Sony Music Entertainment (Canada) Inc., other applications and games. Users can upgrade to the new software by simply downloading it over the air. CH2M HILL selects Redline for wireless networkEngineering, consulting and program management company CH2M HILL has deployed Redline Communications Inc.’s AN-50 wireless broadband system as the primary network for a major nuclear deactivation and decommissioning project as its Rocky Flats facility in Golden CO. The AN-50 will provide nomadic point-to-point communications, point-to-multipoint backhaul, Voice over IP services and data connectivity. "Part of the project requires the removal of traditional copper and fiber infrastructure, and turning off local leased lines and power in buildings scheduled for demolition, while continuing to provide data and voice services. We needed a wireless system that was completely fluid and nomadic, and could also provide robust, high-performance broadband services," CTO for the project Kelly Guthner said in a news release. 724 Solutions inks deal with wireless operatorToronto-based 724 Solutions Inc. has inked an agreement that will see it provide a major mobile wireless network operator with its X-treme MMS Accelerator (XMA) system. The XMA allows wireless carriers to cost-effectively and efficiently launch revenue-generating application-to-person (A2P) multimedia messaging services. "Traditional MMS Service Centers are adequate for the delivery of peer-to-peer MMS messages, but lack the message throughput to allow mobile network operators to take advantage of the newly emerging application-to-person MMS messaging opportunity," reads a July 20 news release. Strategy Analytics projects that global A2P MMS messaging revenue to hit US$10 billion by 2008, capturing about half of the entire MMS market. Panda Mobile selects eZiText’R’ from Zi Corp.Predictive text technology from Zi Corp. has been selected by Panda Mobile Communications Equipment Co. Ltd. (PMC), an Asian-based handset maker. Zi unveiled its latest eZiText‘R’ technology at the CommunicAsia Exposition in Singapore in June. PMC is expected to release new handsets with the embedded predictive text technology in the second half of this year. Agilent introduces new radio frequency calibration toolAgilent Technologies Inc. has introduced the N5530S measuring system for calibrating RF and microwave signal generators and attenuators. Some of the new features in the N5530S include: standard frequency coverage of 3 GHz, performs measurements up to 26.5 GHz without external downconverters and has a minimum RF bandwidth of 1 Hz. SkyWave reaches milestone in satellite receivers soldSkyWave Mobile Communications Inc. announced on July 21 that it has manufactured, sold and delivered more than 33,000 Inmarsat D+ satellite terminals. The company says that it is the first Inmarsat D+ terminal manufacturer and service provider to reach these levels. SkyWave also notes that this achievement corresponds to strong sales growth, which has increased 40% in the quarter ended June 30, compared to the previous year’s quarter.

ROW Short Takes

News | July 27, 2004

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