Jamie Sturgeon
Sun
Telefon AB LM Ericsson was wasting no time getting to work in Canada on Wednesday, inking a long-term agreement to build out DAVE Wireless Inc.’s mobile phone network as the Toronto-based startup carrier prepares to enter a competitive market set to get even tougher.
Swedish telecom giant Ericsson — winner of the recent bidding process for Nortel Networks Corp.’s wireless unit — will construct the new network starting with the five largest markets that DAVE — Data & Audio Visual Enterprise Wireless Inc. — plans to operate in by early next year, a list that includes Vancouver, Toronto, Ottawa, Calgary and Edmonton.
Financial details of the deal were not disclosed.
The partnership will see DAVE Wireless deploy a third-generation network that uses HSPA, or high-speed packet access, technology.
HSPA is the same network gear used by Rogers Communications Inc., the largest wireless provider in Canada, which can support mobile Internet-equipped smart-phones such Apple Inc.’s iPhone and the BlackBerry made by Research In Motion Ltd.
Dave Dobbin, chief executive of DAVE Wireless, said the announcement represents a “milestone” for the soon-to-be rival of Rogers as well as other incumbent carriers Bell Canada Inc., and Telus Corp., providing the company with end-to-end infrastructure.
Network quality among the new players, which include Globalive Holdings, Public Mobile and Quebec‘s Videotron, has been a concern for some analysts, who believe they’ll have a difficult time maintaining large volumes of calls and data transfers through their limited amounts of wireless spectrum.
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