TORONTO and MONTREAL – Rogers Communications and Bell Canada today said they will jointly build and manage a Canada-wide wireless broadband network.
The network is expected to initially reach more than two-thirds of Canadians in less than three years. The companies will pool their wireless broadband spectrum holdings into a joint venture, Inukshuk Internet Inc., which will build and operate the network. Once built, Canada will have one of the most robust and extensive wireless broadband networks in the world.
Normally enemies on many competitive fronts, Bell and Rogers decided to get together on this project to split the costs and risks (because who knows when WiMax standards will be completed). And, working together will get the network completed more quickly.
The network is not meant for the companies’ wireless voice business, but for wireless broadband communications and all that may entail going forward.
"The promise of wireless broadband is here and Bell and Rogers have the expertise, resources and commitment to make it happen," said Bob Berner, chief technology officer of Rogers Communications. "This is a powerful tool for Canadian businesses and consumers – both of whom will benefit from the substantially increased and accelerated competition the network will bring."
Inukshuk will be the network services provider to Rogers and Bell and their subsidiaries, and will operate on a cost recovery basis. The arrangement will allow the companies to minimize costs and maximize wireless broadband network coverage by pooling their spectrum holdings and leveraging both companies’ existing wireless tower and network transport infrastructures.
The companies have not yet decided whether or not to sell access to other companies on a wholesale basis.
Ideal for Canadians on the go, the services will be portable allowing subscribers to access the Internet and use a host of voice, video streaming and data applications from wherever the service is available. Bell and Rogers will compete in the marketing and delivery of applications and services to end-customers over the network, “ensuring healthy competition and consumer choice,” says the release.
"This is an efficient, effective and responsible approach to getting more high speed Internet services to more Canadians more quickly," said Stephen Wetmore, group president national markets, Bell Canada. "Wireless broadband offers exciting opportunities for the delivery of these services, particularly for many of those living in unserved and remote communities."
Inukshuk will be owned and controlled equally by Rogers and Bell and will plan, design, build, operate and maintain a Canada-wide wireless broadband telecommunications network. Bell and Rogers will each have the right to use 50% of the network’s total transmission capacity. Sales, marketing, end-user customer care and billing functions will be provided directly by Rogers and Bell to their respective customers.
The companies will jointly and equally fund the initial network deployment costs estimated at $200 million over a three-year period, completing a network footprint that will cover over 40 cities and approximately 50 unserved rural and remote communities across Canada.
Inukshuk expects to negotiate a roaming agreement with Clearwire Corporation, a U.S.-based company building a similar wireless broadband network, allowing Rogers and Bell to offer customers access to an extensive Canada-U.S. wireless broadband footprint. Inukshuk plans to continue to use network equipment manufactured by NextNet, a wholly-owned subsidiary of Clearwire Corporation.
As standards-based technologies emerge, such as WiMax, Inukshuk is committed to evaluating their feasibility and evolving to such standards as appropriate.
"This agreement will keep Canada at the leading edge of next generation technologies," added Wetmore. "It also supports the Government of Canada’s rural broadband objectives."
Rogers currently controls and will contribute to the joint venture its entire broadband wireless spectrum in the 2.3 GHz, 2.5 GHz and 3.5 GHz frequency ranges. Bell controls and will contribute to the joint venture all of its broadband wireless spectrum in the 2.3 GHz and 3.5 GHz frequency ranges.
Separately, Bell has reached an agreement with companies controlled directly or indirectly by Craig McCaw under which Bell will acquire the remaining 50% of NR Communications that it does not already own. NR Communications and a subsidiary of Rogers are the two partners in the current Inukshuk joint venture which holds approximately 98 MHz of wireless broadband spectrum in the 2.5 GHz frequency range across much of Canada.
Spectrum transfer approvals from Industry Canada, completion of Bell’s acquisition of Craig McCaw’s interest in NR Communications, and other customary closing conditions are expected to be straightforward.
