Pathcom Wireless, a 3.5 GHz spectrum licensee, begins network rollout in AB

Cochrane AB-based Pathcom Wireless Inc., a winner in the 2004 spectrum auction of 3.5 GHz bandwidth, is now beginning to roll out its network and hopes to have a significant chunk of its licensed territories up and running within the next few years. In an interview with Report on Wireless, Pathcom president Chet Perry says getting out of the chaos band and obtaining some clean air was key for the company to move forward. "We started in the Internet business (using unlicensed bands) back in 2000. Things went along swimmingly for a while, but as different consumer products started to show up on the scene, it, of course, became a nightmare. Then even the Wi-Fi that people liked to have in their homes (presented) a fairly big challenge for us," he tells RoW. Perry says the company stopped growing its unlicensed network about a year ago after acquiring a substantial number of licences in the 2004 spectrum auction. Since that time, Pathcom waited to see the outcome of the 2005 auction of unassigned licences and it also waited for the manufacturers to complete development of equipment. (In the 2004 spectrum auction, Pathcom emerged as a significant winner of licences in Western Canada. It secured the rights to 37 licences, covering a total population of more than 1.5 million people for slightly more than $93,000. The table below shows a sample of the licences Pathcom purchased in the spectrum auction.) But now the company is receiving quantities of equipment sufficient to begin a fairly rapid rollout. "We are (rolling out) right now in our existing footprint around Calgary. We’re doing it because we have to look after the clients we have, who have been suffering through the chaos band, and then we’re rolling out to other areas," Perry says. The hope is to get a good start over the summer months with longer-term rapid growth taking place over the next 18 to 24 months. Pathcom is currently using equipment from California-based Aperto Networks, one of the leaders in broadband wireless access gear, but is also testing solutions from other vendors. "We’re not planning on getting married to any of them," Perry says. "We’re evaluating a Wi-LAN product, and we’re using Redline (gear) for some of our backbone." The licensed frequencies the company acquired in the 2004 spectrum auction will allow the company to better serve existing customers with remote locations. With clients in resource industries such as oil and gas, mining, limber etc., Perry says the 3.5 GHz band provides Pathcom a high-bandwidth solution it can offer its customers. "For the last probably 12 years, we’ve served those clients with VSAT and we will still continue to do that, but the SuperNet in combination with our fixed licences allows us to get out there with larger bandwidth," he says. International experience brings benefits to Alberta Pathcom has a history of international experience and was one of the lead developers in enabling broadband wireless Internet access on trains in the United Kingdom. Its technical background helped it get in the ground floor of developing the mobile broadband wireless system, says Perry. "We built the system and tested it out east of Calgary with Chevy Suburbans going at 150 km/h," he states, adding the result of the contribution was equity in a company called Nomad Digital. Perry says there could be additional opportunities for the company in Europe as he says there is currently a process underway to outfit the rail system in Denmark with mobile high-speed Internet access. Not only does the company have international experience, it relies on nearly three decades of telecommunications knowledge. Originally formed in 1976 as a telecommunications industry consulting firm, it later moved into the service delivery model in the early 1990s. With operations spanning both wireless and satellite, the company appears well poised for growth. On the revenue front, Perry says it’s hard to provide accurate growth figures because the company’s revenue fluctuates substantially from year to year, adding that the company, over its lifetime, has been profitable. There will, however, be more money going out the door than coming in, he admits. "We expect for the next couple of years we would be burning a little bit just because we’re rolling out (our network). We’re not expecting our customers to pay the full shot, capital wise, even on the customer equipment."

Pathcom Wireless, a 3.5 GHz spectrum licensee, begins network rollout in AB

News | 06/16/2005 4:00 am EDT

To keep reading, get a free trial.

Already a Subscriber?

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us