Less than a year since licenses were awarded, PCS is live in Canada.
Microcell Telecommunications Inc. turned on its personal communications services network in Montreal and is offering service at low rates.
The Montreal-based company is targeting the mass market with its wireless service, branded Fido. Fido launched with a package that includes 400 minutes airtime, call waiting, call forwarding and conference calling for about $30 (U.S. dollars) per month. Fido customers also are charged $35 per year for access.
Microcell’s sales approach is direct, through company-owned and other retail stores. “You will find our sales representatives at the Fido Store and at our other points of sale,” commented Gary Switzer, vice president, sales and distribution. “Our objective is to build an outstanding company. We have a lot to prove, in a short time.”
Fido customers can choose between a Nokia Corp. phone, priced at $185, or an Ericsson Inc. phone, priced at $332. The phones can be purchased up front or paid over 12 or 24 months.
Microcell Solutions provides the Fido service, while Microcell Telecom’s Microcell Connexions division holds the PCS license and is responsible for network deployment, operations and marketing. Microcell Labs is dedicated to research and development of new applications.
“In the next few months, we will add to our line of services and extend coverage to the Quebec City, Ottawa, Toronto and Vancouver areas,” said Andre Tremblay, Microcell Telecommunications’ president and chief executive officer. “In addition, we will be finalizing major R & D projects and setting up our venture-capital fund.”
Microcell Capital plans to provide initial funding to small companies and entrepreneurs interested in PCS. Candidates must present a business plan with objectives in line with Microcell’s and which promise a return on investment. In the next five years, the company plans to generate at least $90 million in investment capital this way.
Tremblay noted other service providers will have the opportunity to lease space on Microcell Connexions’ network.
Ericsson and Northern Telecom Ltd. are supplying Microcell’s network equipment. The system uses Global System for Mobile communications technology. Microcell said it plans to offer coverage to about 20 million Canadians by the end of 1998, which represents about 70 percent of the population.
Fido’s optional services include call display, personal voice messaging, fax and text messaging. Smart cards are available for $37.
Long-distance service rates are competitive, said Microcell. Calls within Quebec cost 15 cents per minute at any time. Calls placed to the rest of Canada or to the United States cost 20 cents per minute. Airtime is billed per second.
Concurrent with its network launch, Microcell announced it signed U.S. roaming agreements with BellSouth Mobility DCS, Pacific Bell Mobile Services and Omnipoint Corp.
Microcell Telecommunications is owned by a handful of companies. Telesystem Ltd. of Canada holds a 33 percent share, Sprint Canada owns 19 percent, Videotron holds 10 percent, Shaw Cable Systems holds 10 percent and FirstTel has 12 percent.
Microcell and Clearnet Communications Inc. each won a 30 megahertz nationwide PCS license. Cellular operator Rogers Cantel Inc. received a 10 megahertz nationwide PCS license and the members of Mobility Canada each hold a 10 megahertz regional PCS license.
Clearnet expects to launch its Code Division Multiple Access service in three major cities by the middle of 1997. Rogers and some of the Mobility Canada members have indicated no rush in activating PCS. As nationwide operators of cellular service, their priority is bringing digital services to the market, be it at 900 MHz or 1.8 GHz.
