Rapid progress to market for Canada’s personal communications services licensees is marked by Industry Canada’s recent release of license conditions and Bell Mobility’s announcement to use Code Division Multiple Access technology.
Canadian Minister of Communications John Manley announced guidelines for PCS, including stipulations for the two nationwide cellular carriers that won PCS licenses-Mobility Canada and Rogers Cantel Mobile Inc.-in aims to create a level playing field.
Cantel and the regional members of Mobility Canada, each granted a 10-megahertz PCS license, and Clearnet Communications Inc. and Microcell Telecommunications Inc., each awarded a 30-megahertz license, are racing to build their networks, set up distribution channels and define business strategies, said Mark Lowenstein, director wireless/mobile communications at the Boston-based Yankee Group.
David Bosquet, national systems analyst at Industry Canada, said operators are expected to begin service in major markets within the next year. Toronto, Montreal and Vancouver will be launch cities for most players.
Angela Hislop, spokeswoman for Toronto-based Bell Mobility, said Industry Canada’s final version of license conditions was imperative in making a technology decision.
Industry Canada stated all PCS firms; must “substantially” implement nationwide systems within five years; invest an average of 2 percent of adjusted gross revenue from PCS operations toward PCS-related research and development during the next five years; each honor the commitments specified in initial proposals; provide Industry Canada with annual reports the first five years showing compliance with the above and other conditions; comply with transition and relocation procedures of microwave incumbents and comply with a number of eligibility criteria set out in Canada’s telecommunications act, the Interim Sharing Agreement between Industry Canada and the Federal Communications Commission regarding spectrum, site specific authorization for building out networks and lawful interception rules.
The cellular carriers (Cantel and Mobility Canada) may offer PCS services in the country’s 25 Census Metropolitan Areas only when the following criteria are met. All PCS licensees must have interconnection to the public switched telephone network in a market area; cellular carriers and their resellers must offer analog cellular resale and analog cellular roaming services throughout a given cellular service area on a non-discriminatory basis to the other two PCS providers.
“Clearnet will be able to offer its PCS clients the extended footprint of the cellular operators … in less populated areas where Clearnet has not yet built-out its PCS system,” said the Pickering, Ontario-based company. Clearnet PCS was not available for comment, but several months ago stated plans to use its current enhanced specialized mobile radio sites for PCS as well. The company has not indicated what technology it will use.
Mobility Canada’s regional affiliates may decide to create a national network. Bell Mobility is the first of 15 regional Mobility companies to announce a technology platform. BCTel Mobility has selected CDMA for 800 MHz. John MacLise, spokesman for MTS Mobility in Winnipeg, Manitoba, said each regional company will operate its own PCS network, but that it is in the customers best interest for all Mobility Canada affiliates to use a similar technology.
Most PCS providers, including Bell Mobility, plan to provide phones capable of analog and digital transmission at cellular and PCS frequencies.
Montreal-based Microcell PCS, plans to use Global System for Mobile communications technology with equipment supplied by L.M. Ericsson and Nortel. Andre Tremblay, Microcell president and chief executive officer, suggested prices for PCS versus cellular will be comparable to that of American Personal Communications in Washington, D.C., and Orange plc in the United Kingdom-between 10 percent and 40 percent below cellular, he said.
“You see basically the wireless industry going from the technology era to the mass market area,” said Tremblay. Microcell will take a mass market approach, Tremblay commented, but with a “better product and price quality ratio.”
By 2000, Canada will garner about 900,000 PCS subscribers and $540 million in revenue and four years later claim 2.9 million subscribers and $1.5 billion in revenue, forecasts the Yankee Group.
