North American Wireless Inc. has yet to announce the name of a U.S. utility company expected to take the place of Cable & Wireless Inc., which recently withdrew from the partnership.
Vienna, Va.-based NAWI was formed last fall with the goal of building a nationwide network by tying together designated-entity licenses for personal communications services. The group intends to use Code Division Multiple Access technology.
AT&T Network Systems Inc. signed on to be the network architect, prime contractor and equipment provider, which could amount to a $2 billion opportunity for AT&T. That agreement remains intact.
Cable & Wireless Inc., the U.S. arm of London-based Cable & Wireless plc, had a preliminary contract to provide long-distance and signaling support for the NAWI network, as well as customer service billing and marketing support services.
But Cable & Wireless recently left the partnership, saying it was concerned about continuing “delays and uncertainties” related to the DE auction, which currently is on hold for the second time due to litigation. The company is pursuing “a more aggressive wireless strategy.” It plans to make an announcement concerning that strategy later this fall.
U.K.-based Cable & Wireless is a strong proponent of Global System for Mobile communications, a European mobile standard gaining favor with some PCS operators.
Cable & Wireless wouldn’t say whether its decision to leave the NAWI partnership was related to anti-GSM activity conducted this summer by NAWI’s president and chief executive officer, James Valentine.
Valentine is a public spokesman for a Washington political action campaign that opposes the introduction of GSM technology into the U.S. market. The group claims GSM doesn’t protect hearing-aid customers from RF interference. Valentine recently resigned as NAWI president and CEO, but he still holds a seat on the NAWI board and remains involved in NAWI’s venture capital activity.
The new utility company will appoint Valentine’s replacement, said Bill Leonard, NAWI chief financial officer. Hopes aren’t dashed by the auction’s postponement, he said. NAWI won’t own licenses, but intends to serve as a integrator of license holders.
“We’re frustrated that there are some entities that might have been in a position to participate who may find it harder to do so. Money doesn’t sit around waiting for something to do. Some may not be able to resurrect their funds,” Leonard said.
But once the auction flies, so will NAWI, the company said.
“At the end of the day, there will be entities with licenses. We’ll have a customer, one way or another,” Leonard said.
NAWI chose CDMA for its U.S. network in part because CDMA is a North American standard and could pose fewer interoperability problems in the long run, said Ford Greene, North American’s chief operating officer.
