Canadian telecom giants Rogers Communications Inc. and Bell Canada said they plan to jointly build and manage a nationwide wireless broadband network that through a potential roaming agreement could include Craig McCaw’s U.S.-based wireless broadband provider Clearwire Corp.
Bell Canada and Rogers said they will pool their wireless broadband spectrum holdings into the joint venture-dubbed Inukshuk Internet Inc., which will build and operate the network-with plans to cover more than two-thirds of the country’s population within three years.
Each company will invest an estimated $200 million during three years into the venture with plans to cover more than 40 cities and about 50 unserved rural and remote communities across Canada. Rogers said it will contribute its entire spectrum holdings in the 2.3 GHz, 2.5 GHz and 3.5 GHz frequency bands to the venture, while Bell Canada said it will offer its holdings in the 2.3 GHz and 2.5 GHz bands.
Inukshuk will operate the network on a cost-recovery basis, with Bell Canada and Rogers each having the rights to use 50 percent of the network’s total transmission capacity. Sales, marketing, end-user customer care and billing functions will be handled by the respective operator.
Inukshuk said it plans to negotiate a roaming agreement with Clearwire and plans to use network equipment manufactured by Clearwire subsidiary NextNet.
The service will be targeted at both enterprises and consumers and include access to the Internet, as well as voice, video streaming and data applications. Bell Canada and Rogers said they will compete in the marketing and delivery of applications and services to end users over the network, ensuring competition and consumer choice.
“This is an efficient, effective and responsible approach to getting more high-speed Internet services to more Canadians more quickly,” noted Stephen Wetmore, group president of national sales for Bell Canada. “Wireless broadband offers exciting opportunities for the delivery of these services, particularly for many of those living in unserved and remote communities.”
In a separate announcement, Bell Canada said it will acquire Craig McCaw’s 50-percent interest in NR Communications that Bell Canada does not currently control. NR and Rogers subsidiary Microcell Telecommunications Inc. are the two partners in the current Inukshuk joint venture that holds about 98 megahertz of wireless broadband spectrum in the 2.5 GHz band across much of Canada and offers service using NextNet’s infrastructure.
Bell Canada announced an alliance with Clearwire earlier this year that included a $100 million investment in NR and called for Bell Canada to be Clearwire’s exclusive strategic partner for Voice over Internet Protocol and certain other value-added IP services and applications in the United States. Bell Canada also was named Clearwire’s preferred provider of IP-based services and applications outside of North America.
