SaskTel sells Navigata; focuses on innovation and long-term fibre roll-out

SaskTel has reached an agreement to sell its BC-based IP phone division, Navigata, taking a significant loss as it sets its sights on an ambitious, province-wide broadband roll-out, and a push to sell its innovative OpenSwitchGate activation solution. “We are happy; we got good value for it,” SaskTel president Robert Watson tells Tech Media Reports, in reference to the Navigata sale. “We sold it as a going concern, giving the employees a future, which was our biggest concern.” This is putting a good face on a $1.25-million deal that comes after a total cash loss of $90.8 million. SaskTel bought Navigata in 2001, and the Communications, Energy and Paperworkers Union has claimed that the sale leaves SaskTel more vulnerable, but Watson argues that Navigata has essentially become irrelevant to SaskTel’s long-term strategy. “The industry changed dramatically over the past few years,” says Watson. “Frankly, VoIP didn’t take hold when it was supposed to, and in new market areas you don’t necessarily have to own the network to provide good service.” Watson would rather discuss SaskTel’s long-term fibre plans, and the innovation coming out of SaskTel International, which has just released Version 6.0 of its OpenSwitchGate activation solution, built in the open standard platform Java SE. “We expect this part of the business to grow greatly in the next few years,” says Watson. “We have a consultant arm and also a software and provisioning side. This is a very good piece of software – we have eleven telcos using it now, the largest being CenturyTel in the US. Aliant also uses it, as do other regional carriers.” SaskTel has no new products in development, but has started a partnership division in the hopes of developing and growing the service, which automates the jump from provisioning to activation. Recently, SaskTel partnered with Contactual to provide users additional hosting for Contactual’s software-as-a-service contact centre solution. But without a doubt SaskTel’s greatest ambition is its fibre roll-out. “We have a ten-year program for fibre-to-the-home,” says Watson. “We will provision all homes and businesses in the ten major communities.” Watson anticipates that consumer demand will soar. In the next year, the telco will provision fibre to 3,200 homes, and within 10 years will have broadband – defined as 5 meg service – to 300,000 homes. For rural and remote areas, SaskTel has partnered with Barrett Xplore for fixed broadband wireless and satellite delivery. “This is a fully-funded, ten-year plan,” says Watson. “By the time we finish we will have the best geographic network in the world.” SaskTel also recently announced that it would be increasing residential phone rates in high cost serving areas in Saskatchewan as a result of the CRTC’s price cap decision. Watson was cautious in his assessment. “The rural rates, their increased contribution, it’s unfortunate,” he says. “We are increasing the rural rates proportional to the formula, for inflation. They won’t increase next year because there won’t be any inflation. To me, inflation-based rates seem like a fair way to do it.” Watson said part of the problem is a lack of a national broadband strategy. “This should flow out into a digital economy strategy, and from that to mobile broadband” he says. “The government should even consider making it an essential service with budget funding. There is now no money for ongoing sustainability.”

SaskTel sells Navigata; focuses on innovation and long-term fibre roll-out

News | October 30, 2009

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