Craig Wireless expects Industry Canada to greenlight mobile WiMAX spectrum for BC

Craig Wireless Systems Ltd. expects final approval this summer from Industry Canada to use 2.5 GHz spectrum to launch a new mobile service in British Columbia, the company's top executive revealed at the Canadian Wireless Telecommunications Association's WiMAX conference in Toronto last week. If approved, Craig Wireless could become the first in Canada to rollout a WiMAX network for mobile services in Canada. "We hope that within the next couple of months we can have that spectrum authorized for mobile and we'll figure out our launch plans from there," newly minted Craig Wireless CEO David Lazzarato tells Report on Wireless. Industry Canada had previously licensed this bandwidth for fixed services, but in 2006 the government adopted new policies that enable existing licensees to offer mobile services. To go mobile though, licensees have to return some of the spectrum. The decision to add a mobile services allocation resulted from the 2.5 GHz band being named as a 3G band by the International Telecommunication Union. A similar decision was rendered by the US Federal Communications Commission. Despite the requirement to return 30% of the spectrum, Craig is undeterred and confident it can be the first with a commercial mobile WiMAX network in Canada. "We look at the quid pro quo as okay, provided we'll be treated the same as the other 2.5 GHz holders," he says. Craig Wireless' spectrum portfolio includes about 1.6 billion MHz-POPs, with holdings in Palm Springs CA, Greece, Norway, New Zealand, Manitoba and southern British Columbia. The company isn't ruling out a mobile service in Manitoba either. Primus Telecommunications Canada Inc. is currently testing mobile WiMAX equipment from Motorola Inc. and Alcatel-Lucent in the Toronto and Hamilton areas. The objective of those trials is less about mobility and more about robustness of the gear in a variety of situations. Craig Wireless' decision to go mobile will run also full-steam ahead into well-established networks such as high speed packet access (HSPA) and emerging ones such as Long-Term Evolution (LTE). While Lazzarato concedes that HSPA technology has a strong foot-hold in the market, he is confident WiMAX can leave its mark. "In a developed market like the City of Toronto or the City of Vancouver that mobility aspect is huge ... you can't be attached to a string or a cord or a cable. A little mobility can go along way," he says. "In some areas it would be an alternative to DSL or cable, but there will be differences. The mobile application and features make it a different product and a different experience, a richer experience." The Craig Wireless CEO also suggests that mobile WiMAX will help increase Canada's overall level of broadband connectivity, "It will help with the penetration, because even Canada isn't at 100% connectivity," Lazzarato says. According to a report released earlier this month by the Oganisation for Economic Co-operation and Development (OECD), 78% of rural Canadians are within the broadband footprint, while virtually all Canadians residing in urban centres have access to broadband. OECD figures reveal that 8.7 million Canadians had broadband access at the end of last year. WiMAX has it supporters, but some don't believe WiMAX will make any significant inroads into the mobile space. "We already know that the underserved broadband market is going to be huge for WiMAX," says Nortel Network Corp.'s Alan Pritchard, VP carrier solutions. "Will it compete with GSM in five years? No, but it will be a relevant technology." Juniper Research recently predicted that 70% of the total mobile subscriber base would be though HSPA/LTE networks by 2012, with WiMAX accounting for single digital penetration rates. But some large service providers are bucking the trend; earlier this month Clearwire Corp. and Sprint Nextel Corp. entered a joint venture partnership to launch an US-wide WiMAX network. Craig Wireless is also willing to roll the dice. "WiMAX has been talked about for more than five years. It's here. It's not being launched in every market, but it's here. It's not a bet on 18 months from now," Lazzarato says referring to LTE's expected commercial launch in a few years. "Let's start rolling out the business models. Some people will be successful and some people will fail. It's like that in any business."

Craig Wireless expects Industry Canada to greenlight mobile WiMAX spectrum for BC

News | 05/28/2008 2:18 pm EDT

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