RoW Update

Sprint Canada unveils wireless bundle priceSprint Canada Inc. has priced its soon-to-be-launched local residential wireless-wireline bundle at $44.95/month, the company announced in an August 31 news release. Earlier this summer, the company said that it was working with struggling wireless operator Microcell Telecommunications Inc. to offer a wireless-wireline local residential service bundle (RoW, July 9/03). Details of the package can be found here. This agreement appears to be a win-win for both companies. Sprint Canada was looking for a way to bolster its local residential service offering, while Microcell was searching for greater marketing muscle without the added expense. In a conference call announcing the agreement, Microcell PCS president and COO Alain Rheame said the company would not decrease its $100 per subscriber marketing budget as a result of the deal with Sprint Canada. Microcell should now be able to acquire customers at a premium compared to its rivals. In advance of unveiling the details of the new bundle, Sprint Canada commissioned a survey of Canadians’ telephone habits. The survey revealed that parents are more likely to consider purchasing a cell phone for their children if they demonstrate good school habits. If competing for a job in Toronto, people should make sure to put their cell phone number on the job application, the survey found. It also noted that Canadians are quickly adopting text messaging as a “speedy” form of communication for business and pleasure, but SMS shouldn’t be used to fire someone or file for divorce.PointShot expands rail offering to U.S.Ottawa-based PointShot Wireless has turned its successful mobile Wi-Fi trial with Via Rail and Bell Canada into similar trials south of the border. On August 25, the company unveiled details of a three-month trial with Altamont Commuter Express, or ACE Rail, under which passengers between Stockton and San Jose CA will be able to access the Internet for free. The trial is to begin mid-September. Another trial is slated for a commuter rail line extending from Sacramento to Oakland and San Jose. As is the case with the Bell Canada-Via Rail trial, the ACE Rail experiment will use a satellite connection to connect to a Wi-Fi network within the rail cars and then outgoing requests will be routed through a cellular network. Prices for the service after the trial period is complete have yet to be determined.EARNINGS ANNOUNCEMENTSSR Telecom takes top line hitMontreal-based SR Telecom Inc. has taken a significant hit to its top line in the second quarter of the 2003 fiscal year, posting a substantial decrease in revenue over levels recorded in same period in 2002. For the second quarter ended June 30, SR Telecom had revenue of $30.6 million compared to $49 million achieved in the second quarter of 2002. For the six-month period, revenue was $60.2 million, two-thirds the level recorded in the same period last year ($94.5 million). The hit on the bottom line was equally significant, skyrocketing from an operating loss of $339,000 in Q2 2002 to $5.6 million in Q2 2003. During the first six months of 2003, SR Telecom posted a net loss from operations of $12.6 million compared to operating earnings of $407,000 in the same period last year. “The decrease in revenue in the quarter was largely due to large sales to two customers in the second quarter of 2002 that were not replicated in the second quarter of 2003. For the first half of 2003, revenues were also directly affected by the conflict in Iraq and by delays in closing significant new orders,” SR Telecom noted in an August 28 news release.Wi-LAN Libra 5800 certified for ChinaWi-LAN Inc.’s Libra 5800 fixed wireless access product has received certification for the Chinese market from the State Regulatory Radio Commission. The Calgary-based company can now begin selling the non-line-of-sight wireless access product throughout the large market. The product approval marks another product certification for Wi-LAN. Also, the company posted third-quarter income of $37,000 compared to a net loss of $6.3 million recorded in the third quarter of the previous year. For the quarter ended July 31, Wi-LAN had revenue of nearly $7.5 million and generated positive cash flow from operations of $1.8 million. The company posted a 25% increase in revenue over both the previous quarter and Q3 2002.CSI Wireless doubles revenue in second quarterCalgary-based CSI Wireless Inc. doubled revenue in its fiscal 2003 second quarter ended June 30 over the same quarter last year. The company recorded revenue of nearly $22 million in Q2 2003 compared to revenue of $10.7 million in last year’s second quarter. The bottom-line revenue improvement helped CSI Wireless record net earnings of $505,000 compared to a net loss of $578,000 in the second quarter of last year. The company cites increased sales and improved margins on the Motorola Inc.-branded FX800t as key drivers for the return to profitability. The latest quarter represents the first bottom-line profitable quarter for the wireless business unit since it was acquired in 2000. CSI Wireless also believes that the investment required for the wireless segment is largely complete.Ignition Point reports increased business activity and revenueIgnition Point Technologies Corp. has reported increased income from both recurring revenue charges and revenue for network prepayment charges, referred to as unearned revenue. In its fiscal 2003 third quarter ended June 30, the Vancouver-based firm recorded a total of $180,000 in recurring revenue and $439,000 in unearned revenue. The company, which owns Wi-Fi operator Fatport Corp., continues to post quarterly losses, although they are on a downward trend. In Q3 2003, Ignition recorded net losses of $569,000 compared to $642,000 in the previous quarter and $2 million in the same quarter last year.INTERNATIONAL NEWSIEEE shoots for new notebook battery standardThe Institute of Electrical and Electronics Engineers (IEEE) has released the first draft of a new standard for notebook and handheld computers, IEEE P1625. The new specification aims to improve the reliability of lithium-ion and lithium-ion polymer batteries and to better their capability to handle greater power and energy density.The new battery standard takes a system approach, which should help improve overall reliability, according to the IEEE. “Other battery standards tend to emphasize the cell or the pack. This will be the first standard that seeks to improve the experience by addressing the entire system from individual cells to the overall device. This approach makes a lot of sense because the interactions between the battery cell, battery pack and computer require a close look at the operating envelope for all elements alone and in concert,” IEEE P1625 Working Group chair Jeff Layton said in a news release.Wi-Fi to get major push next monthPublic wireless hotspots around the United States will get a major push next month when Intel Corp. will foot the bill for an entire day of Wi-Fi use by mobile computer users. On September 25, laptop and wireless handheld users who are equipped with Wi-Fi cards will be able to access the Internet, check email or even play games for free as part of Intel’s One Unwired Day campaign. The campaign will also feature a slew of festivals hosted by Intel in major cities such as New York, Chicago, San Francisco and Seattle where there will be product demonstrations and where people can win prizes such as computers and wireless home networking equipment. Attendees will also be treated to live concerts. While there can be little doubt that Wi-Fi is receiving significant attention and has now garnered the interest of large telcos, a free Wi-Fi day may mean that uptake of the service is proceeding slower than stakeholders would like the public to believe.Palm and 3Com under the gun following court rulingPalm Inc. and 3Com will likely be faced with more litigation following a Washington D.C. court of appeals ruling that extends the definition of credit-card sized devices to include handheld devices and PDAs. The case stems from a February 2000 patent lawsuit filed by E-Pass Technologies, McLean VA, against Palm and 3Com. A district court in California cleared the two companies of any wrongdoing in August 2002. “With a view towards the vigorous enforcement and protection of its intellectual property rights, E-Pass is currently undergoing a thorough evaluation of all products and processes that might be covered by its patent, now that the patent has been vindicated by the Federal Circuit in Washington,” the company said in a statement.

RoW Update

News | September 2, 2003

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