The concept of fixed-wireless broadband service has been a dream since AT&T rolled out its much-ballyhooed "Angel" project five years ago. With all the talk about Wi-Fi and Wi-Max (see Om Malik's posting on how the market is slow to develop), you would think fixed wireless is poised to make a huge comeback. Given this enthusiasm, what does one make of Manitoba Telecom/Allstream's decision to dump its stake in a fixed-wireless joint venture with Rogers and NR Communications, the private holding company backed by Craig McCaw. MTS quietly sold its one-third equity position last month to Rogers and NR for a measly C$8.1-million.
MTS said after doing an evaluation of the technology and its commercial potential, it wants to focus on being a strategic telecom service suppliers. This sounds like a vote on non-confidence in a service that was supposed to deliver IP-based services such as Internet access and voice. Rogers said it is exploring its options, while NR has been silent.
It was only six months ago Allstream, Microcell and NR were confidently talking about how the new joint venture was going to disrupt Canada's broadband market. Now, it sounds like this JV may quietly disappear into the ether.