Yak sets sights on new wireless spectrum; plans to leverage existing base

Yak Communications Corp., best known as a dial-around long distance provider, believes it can become a successful wireless operator by leveraging its existing customer base and offering a "no contracts, no gimmicks" wireless service. Yak and its parent company Globalive Communications Corp. announced on November 29 - a day after Industry Minister Jim Prentice released the rules for the advanced wireless services spectrum auction - it plans to participate in the auction, set for May 27, 2008.Anthony Lacavera, CEO of Yak and Globalive, is bullish about the company's mobile strategy should it win the right to participate in the auction and ultimately secure spectrum. He points to the company's almost one million residential customers, 6,000 business customers and 3,000 customers in the hospitality sector as a solid base on which to build a wireless business. "We have to put a good business plan in front of the government to win the right to compete , but we've certainly got a customer base that has a real need," he tells Report on Wireless. He notes many of the company's customers are located in Tier 2 cities that are under-served in broadband and in wireless. While Yak's decision to get into the wireless business may come as a surprise to some, the company has been exploring the possibility since it was acquired by Globalive in January. When the deal was first announced last September, Lacavera told RoW that the company was hopeful it could enter the wireless market within six to nine months as a mobile virtual network operator. Yak launched its YakCell call back service in March, allowing cell phone users to use incoming minutes for long distance calls. Lacavera says there's been a void in simple wireless pricing and describes current telecommunications services as "bait and switch pricing." He notes that "heavy handset subsidies" from the existing wireless operators lock consumers into long-term contracts. While details are still vague, Lacavera say Yak will come to market with a "no nonsense offering" without any contracts and surprise fees. "Certainly we won't get out there with zero-cost handsets the way the big guys are," he tells RoW. "But on the other hand, we will be out there with everyday low pricing. Customers will own their handsets and if they don't like our service...they can go across the street to another provider." There are still big hurdles to overcome just to get into the game, but recent developments south of the border, namely Google Inc.'s foray into wireless with its Android wireless platform and Verizon Wireless' decision to implement an open-access network, present some exciting opportunities for a new wireless entrant. Lacavera suggest these developments will not only give Yak the tools to compete effectively, but will also "set the stage for a lot of long-term innovation, new applications and new features, that a Yak will certainly be fast to market with." Despite the optimism, the company won't find it easy to win spectrum. Not only will the usual suspects such as Vidéotron ltée, MTS Allstream Inc. and perhaps Shaw Communications Inc. compete for the 40 MHz of reserved spectrum, others have also thrown their hats into the ring. On the same day Yak announced its intention to participate in the auction, so did Matthew Bassett, CEO of the Bassett Media Group, a digital signage company.

Yak sets sights on new wireless spectrum; plans to leverage existing base

News | November 30, 2007

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us