Two of Canada's leading communication companies, Rogers Communications and Bell Canada, have announced an agreement to jointly build and manage a Canada-wide wireless broadband network that is expected to reach more than two-thirds of all Canadians in less than three years. The companies will jointly and equally fund the initial network deployment at an estimated cost of USD $170 million. Once complete, the network footprint will cover over 40 cities and approximately 50 rural and remote communities across Canada, some of which are still waiting for high-speed Internet access.
Targeting business travelers and others who need what the companies describe as "portable" broadband, the service will allow subscribers to access the Internet and use a host of voice, video streaming and data applications from wherever the service is available in Canada. Additionally, they expect to negotiate a roaming agreement with U.S.-based Clearwire Corporation, a company building a similar wireless broadband network, which will give customers extensive American roaming access.
Rogers Communications, Canada's biggest cable company, and Bell Canada, the nation's largest phone company, are fierce competitors in the cellular phone and wired high-speed Internet business. But rather build separate networks to service what they see as an emerging wireless broadband market, the companies decided to pool their wireless broadband spectrum holdings into a joint venture, Inukshuk Internet Inc., which will build and operate the wireless network. Additionally, Rogers currently controls and will contribute its entire broadband wireless spectrum in the 2.3 GHz, 2.5 GHz and 3.5 GHz frequency ranges. Bell controls and will contribute all of its broadband wireless spectrum in the 2.3 GHz and 3.5 GHz frequency ranges.
The arrangement will allow the companies to minimize costs and maximize wireless broadband network coverage as well as leveraging both companies' existing wireless tower and network transport infrastructures.
Inukshuk, acting as a network services provider to Rogers and Bell, will operate on a cost recovery basis. It will be owned and controlled equally by Rogers and Bell and each company will have the right to use 50 percent of the network's total transmission capacity. However, Bell and Rogers will compete in the marketing and delivery of wireless applications and services to end-customers, thereby offering some competition and consumer choice. From a customer's perspective, subscriptions will be for either Rogers or Bell wireless broadband services.
Proprietary Technology
Initially, Inukshuk plans to deploy semi-proprietary network equipment manufactured by NextNet, a wholly-owned subsidiary of Clearwire Corporation. NextNet offers a non line-of-sight (NLOS) plug-and-play broadband wireless Internet access system that, according to the company, delivers the greatest aggregate throughput for the least amount of spectrum allocated, right to the edge of the cell. This means more subscribers have access to true broadband speeds.
It provides an end-to-end solution for operators with an integrated base station capable of operating in a multi-cell environment and the option of indoor and outdoor subscriber wireless modems, both with extended range NLOS coverage of up to 30 km. Subscriber hardware is customer installable (plug-and-play), facilitating new subscriber set-up.
The choice to go for proprietary technology for now was based on
its proven workability. "We spent a lot of time with the NextNet guys and their technology works whether users are inside buildings or wherever," David Robinson, vice-president of business implementation at Rogers Communications. "This is intended to be a very easily installed consumer product. You simply plug in and it works wherever you are. And it really is a true non-line of sight technology. Although it's proprietary, it is nevertheless pretty robust and advanced."
Shift To WiMAX
Over time, it is expected that NextNet will transition its equipment to the WiMAX standards base once that is fully developed. Last year, a joint development agreement between Intel and Clearwire was negotiated to develop future products supporting the IEEE 802.16e standard for WiMAX. As part of the collaboration, Clearwire intends to deploy WiMAX networks using wireless broadband equipment from NextNet Wireless that will include future Intel chips.
For the Canadian initiative, the shift to WiMAX is also expected. "It is absolutely the intention of the Rogers and Bell joint venture to move to standards," said Robinson. "And if WiMAX gets ratified and turns out to be the standard, then that is the way the wireless broadband network will eventually go."
To accomplish the shift, they in fact would at first overlay a WiMAX RF layer. So, from an operator's perspective, it would look like two networks. But as far as customers are concerned, access from anywhere the network extends should be the same.
"We did the same thing with cable modems as standards developed," explained Robinson. "Over time, you ultimately shift out all the capacity to the standardized and retire your pre-standard equipment. But the expectation is that when you do it, that equipment has been fully depreciated. From a customer's point of view, there really is not much difference. It is just from an economics point of view, the operator sees difference. With standards in place, we expect a vibrant competitive marketplace for the customer premise equipment because then anyone can build it. That means lots of volume, lots of competition and lower prices. So the biggest thing the customer is going to notice as we shift to WiMAX or whatever standard emerges is reduced cost."
Portability Verses Mobility
Robinson emphasizes that the wireless broadband service is a portable solution, rather than a mobile one. "Both Rogers and Bell are in the mobile business and have mobile solutions. So for us the distinction is important," said Robinson. "The only reason I differentiate is that this doesn't work in a car driving at speed. It will drop its connection as it moves out of a cell."
Nevertheless, the extent of the portability offered will still come at a price. "Typically mobile services are valued," Robinson added. "Certainly in the cellular business, people get more from mobile services, specifically the mobility, and are willing to pay more. So logically you would expect that wireless broadband will have a portability premium to it. If you are not using it as a portable service, what are you buying it for?"
As for which cities are to be included in the initial 40-city roll-out of the wireless broadband service, the joint venture has yet to announce these. "It's a matter of competition, so we haven't said," explained Robinson. "But let's face it, if you added up 40 cities and you wanted to reach two thirds of the population -- the country isn't that big population-wise. So you are going to make more right guesses than not."
