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#Written by David Tam, 1996. #
#davidkftam@netscape.net Copyright 1999#
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David Tam
Wednesday, October 30, 1996.
Business Press Review
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Surtees, Lawrence. "Ottawa issues wireless cable licenses". The Globe and Mail.
Wednesday, October 30, 1996. ------------------
The federal industry minister issued licenses to three companies to provide
Local Multipoint Communications Systems Services (LMCS). Licenses were awarded
to Cellular Vision Canada Ltd., Maxlink Communications Inc., and Regional
Vision Inc. These high speed, wireless communication network services are
considered a "third lane" on the electronic information highway. John Manley,
the industry minister, says LMCS will create an alternative to both local
telephone and cable television companies by providing consumers greater choice,
lower prices, and newer services. It operates in the very high frequency end
of the radio spectrum at 28 gigahertz and will be able to deliver wireless
two-way digital video signals along with voice and data access. The capacity
and bandwidth of this wireless network equals that of cable systems,
approximately 1000 times faster than standard telephone lines.
All three winners are supported by major broadcasters. Cellular Vision has
the backing of WIC Western International Communications Co.. MaxLink is
supported by Caisse de depot et placement du Quebec, Texas Instruments, and
Toronto businessman Joel Bell. Regional Vision, a Mississauga-based company,
is supported by Canadian Satellite Communications Inc. The former two
companies will service 66 large urban centers, where as the latter company will
service 127 smaller communities. The LMCS service should be available within a
year or two.
These companies can be considered entrepreneurial, though they may be quite
large, because they are creating a new market. This new market of very high
speed wireless networks exists almost as a contradiction to the popular trend
of "getting connected" to the internet. These companies exist solely on the
belief that "wirelessness" is the way of the future. Imagine future when the
Internet moves from the wired world into the wireless world. Networks would
exist in the air, and become truly ubiquitous, very much like commercial FM and
AM radio broadcasts. Millions of dollars are being spent by these companies on
research and development and in the installation of the infrastructure of these
wireless networks. Personally, I believe these companies, who have been
awarded licenses in the early stages, will experience tremendous growth in the
future when the world realizes that becoming "wiredless" has more advantages
than becoming "wired". These companies have recognized the next paradigm shift
in information technology and will be fully ready to take advantage of the new
business opportunities that will arise.
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