To: JohnG who wrote (32698 ) 6/19/1999 9:07:00 AM From: JohnG Respond to of 152472
Canadian LMCS--Is Q involved here?? High-speed wireless telecom ready for rapid expansion TORONTO, Jun 17, 1999 (The Canadian Press via COMTEX) -- Canada's telecommunications market witnessed the birth of a new national competitor Thursday. But it's a safe bet few Canadians have heard of MaxLink Communications. The Toronto-based company announced it had acquired rival WIC Connexus and affiliate Regional Vision Inc. in a $48.3-million deal that gives MaxLink access to 207 communities across Canada. MaxLink and Connexus are both startup companies working on a relatively new type of telecom technology known as local multipoint communications systems, or LMCS. ''This is very new,'' said Joel Bell, chief executive at MaxLink. ''It's not in the market yet... But five years from now, we won't be able to imagine doing business without high-speed broadband connectivity.'' LMCS is a wireless service that transmits and receives calls, data, Internet and other digital traffic via rooftop antennas instead of wires. ''It's relatively easy to deploy because it doesn't mean carving up streets and going through sewer pipes,'' said George Karidis, associate director at the Yankee Group in Canada, a research firm based in Brockville, Ont. ''It means finding the right rooftop and connecting to the existing wiring in the building.'' LMCS can handle video conferencing, virtual private networks, electronic commerce and almost any other type of digital communication. The download and upload speeds are roughly 300 times faster than the quickest dial-up services and 10 times faster than cable modems. More importantly, LMCS will give businesses and some consumers a cheaper alternative to high-speed fibre-optic lines, which are typically reserved for big businesses in big cities. ''It's broadband capability beyond the economic reach of fibre,'' said Bell. That means high-speed services could soon become a more feasible option for small businesses in small towns. Bell said he expects commercial service to be introduced in the Ottawa-Hull area within weeks. Later this summer, Montreal and Calgary will sprout tiny LMCS antennas, followed by Toronto and Vancouver. The newly merged company expects to spend $1 billion in the next four years bringing LMCS to the rest of Canada. ''The excitement comes from the possibility that this is a new way to provide... high-speed connectivity,'' said Roger Poirier, president of the Canadian Wireless Telecommunications Association in Ottawa. ''The interest in this has really been driven by the Internet.'' But MaxLink's urge to merge has been driven by the federal government's recent decision to allow more competitors in the LMCS market, said Karidis. Industry Canada has been disappointed with the lack of progress made by MaxLink and Connexus. Indeed, technical glitches have kept LMCS in the test stage since the first licences were issued more than two years ago. ''The technology has failed to keep up with market expectations,'' said Karidis. Bell agreed. ''We have all been disappointed,'' he said. ''The technology needed debugging... and that takes time.'' A licence auction will be held in October, ''which means ... it's going to get some heavy hitters into the game.'' In the United States, WinStar Communications Inc. of New York and Teligent Inc., based in Vienna, Va., already offer commercial, wireless broadband services in scores of cities. Copyright (c) 1999 The Canadian Press (CP), All rights reserved.