Seventeen companies interested in providing 1.9 GHz personal communications services in Canada met Industry Canada’s Sept. 15 deadline for submitting detailed business plans.
The Canadian government plans to grant up to six licenses by the end of the year, three each in 30-megahertz and 10-megahertz frequency blocks.
Atlantic Telephone Co., Clearnet PCS Inc., LanSer Personal Communications Inc., Mobility Personacom Canada Ltd., TeleZone Corp.-all based in Ontario-and Microcell 1-2-1 Inc. and Star Communications Systems of Quebec submitted plans for building nationwide networks using a 30-megahertz frequency block. Rogers Cantel Mobile Inc. of Ontario and Wireless Interconnect Network Consortium of Alberta each requested a 10-megahertz license for operating a nationwide system.
Consortia vying for a regional 30-megahertz PCS license include LTI Telecommunications Inc. of Ontario, OneWorld Telecommunications Inc. of Quebec, PCS Canada (part of Prime Communications Corp.) and Xanatel Communications Inc. (part of Spectrum Trading Inc.), both of British Columbia. Four groups-3183254 Canada Inc. of Ontario, AGT Mobility Inc. of Alberta, BC TEL Mobility Cellular Inc. of British Columbia and Saskatchewan Telecommunications Holding Corp. of Saskatchewan-have requested a 10-megahertz license. Regional Mobility Canada companies AGT Mobility and BC TEL Mobility originally applied in conjunction with Mobility Personacomm. Those two and Saskatchewan Telecom are regional Mobility Canada companies and have applied for licenses as a “back up,” in the event the parent company doesn’t receive a nationwide license.
Technology companies COM DEV International Ltd. and Research in Motion Ltd. of Ontario, both of which filed entries in July, formed a strategic alliance with Clearnet Communications Inc. to support Clearnet PCS. COM DEV and RIM previously planned to apply jointly for a license. The two companies will make an equity investment of up to $10 million, said Clearnet. If Clearnet PCS wins a license, COM DEV and RIM would have the option to purchase Class A nonvoting shares in Clearnet.
Metro Calgary Fiber Services Inc. and the consortium of Hutchison Telecommunications Ltd., Distacom Telecommunications Inc. and Canadian Imperial Bank of Commerce, submitted expressions of interest in July, but failed to deliver plans by the September deadline. Ontario Telephone Association has now teamed up with Mobility Personacomm.
TeleZone, which has an experimental license for testing PCS, said it plans to invest $1 billion in its PCS network, assuming it is granted a license. “Service innovation, coupled with uncompromising customer satisfaction will ensure that TeleZone’s PCS offering will be readily accepted by Canadians,” said Raymond Doucet, TeleZone’s president and chief executive officer.
If it wins a 30-megahertz license, Mobility Canada-comprised of 12 regional cellular companies-said it plans to sink $2.6 billion into its PCS operations during the next 10 years. Mobility Canada announced last month it created a PCS Advancement Fund, in which the company would invest $35 million in telecommunications R & D in the next five years, invest $100 million in small- to medium-sized Canadian businesses to develop PCS products and invite international involvement in those businesses and contribute management and financial expertise.
