Cantel 1983–1993
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Wireless in Wonderland Canadians Cut The Cord CANTEL 1983–1993 GEORGE A. FIERHELLER One Approach to a Mobile Phone © 2010 George Fierheller. All rights reserved. Permission to reproduce in any form must first be secured from George Fierheller through the publisher. Library and Archives Canada Cataloguing in Publication Fierheller, George A., 1933- Wireless in wonderland : Canadians cut the cord : CANTEL 1983-1993 / George A. Fierheller. Includes bibliographical references. ISBN 978-1-897486-11-5 1. Cellular telephone services industry--Canada. 2. Wireless communication systems--Canada. 3. Cantel (Firm). 4. Fierheller, George A., 1933-. I. Title. HE9715.C2F53 2010 384.5'350971 C2010-900332-2 Cover design by Lina Di Nardo Moss [email protected] Produced and printed by Stewart Publishing & Printing Markham, Ontario, Canada L3P 2X3 Tel: 905-294-4389 [email protected] www.stewartbooks.com WIRELESS IN WONDERLAND 3 “History will treat me kindly for I intend to write it” - Winston Churchill “Me too” - George Fierheller 4 WIRELESS IN WONDERLAND It is easy if you look at it this way... WIRELESS IN WONDERLAND 5 What’s Inside Dedication..........................................................................................................8 To my friend and associate, the late Ted Rogers who talked me into spending ten years in a field I knew nothing about. Acknowledgements ..........................................................................................9 The views expressed herein are not necessarily those of people who know anything about the field Other Stuff ......................................................................................................10 My opinions on everything else. CANTEL in Context ......................................................................................12 An obnoxious upstart starts up. PART ONE In The Beginning Starting at the Start ........................................................................................15 For most of human history, communication has been wireless. A Wired World................................................................................................21 Blame Morse and Bell for the streets always being torn up. Cutting the Cord ............................................................................................27 The Canadian connection to wireless. Wireless on the Waves....................................................................................31 Well, waves over the waves to be more precise. Phony Phones..................................................................................................32 If car phones looked promising, the fraud artists promised to look. The Spectre of Spectrum ..............................................................................35 A scarce, and therefore valuable, commodity. They aren’t making any more of it! Mobile on the Move ......................................................................................37 As might be expected, the move to mobile communications was led by the police and military. Why Cellular Sells ..........................................................................................39 Capacity creates demand. Cellular Size ....................................................................................................41 Size matters. Background to the Bidding............................................................................43 The process of opening up North America to cellular begins. 6 WIRELESS IN WONDERLAND PART TWO Let The Games Begin The Coming of CANTEL..............................................................................47 The founding partners are in place and I get placed as President and CEO. The Game Begins............................................................................................51 The bids are in, who knows who will win. The Cellular Series ........................................................................................63 All we had really won was the task of proving we deserved to win. A Man of Steel ................................................................................................67 CANTEL builds its team under its new President, Walter Steel, and Nick Kauser builds our network. Prioritizing the Priorities ................................................................................71 The headache of headstart and other challenges such as paying for the whole process. Switching Switches ..........................................................................................77 NovAtel was going nowhere. We switch switch suppliers. The Massé Mess..............................................................................................79 In the middle of all this, the federal government changes. Selling Cellular ................................................................................................81 We decide to sell through agents – The CANTEL Service Centres. Snatching Defeat from the Jaws of Victory..................................................85 When everything was going well, the partners decide to fire Walter Steel PART THREE Back In The Cellular Saddle The Next Cellular Cycle ................................................................................89 I was back as President and CEO, concentrating on the network build, marketing and morale Calling CANTEL............................................................................................95 Building equity in the name despite some network challenges. Momentum Through Motivation ..................................................................97 The company can only move as fast as its staff. How could I ‘keep them flying’? WIRELESS IN WONDERLAND 7 The Next Network ........................................................................................103 New phones lead to new network needs. Safety First ....................................................................................................105 Cellular safety becomes a big issue and a big headache for me. Every Speck of Spectrum ............................................................................107 CANTEL moves beyond voice to data and digital. Controlling CANTEL ..................................................................................109 Ted takes over. PART FOUR Room At The Top The Florida Fling ..........................................................................................113 The place to be in ’93. New Names for the 90s ................................................................................114 Jim Sward takes on the job of President and COO and I move back to being Chair and CEO. This is just the start of a series of changes at the top. Rogers Wireless Today..................................................................................117 By 2008 or 25 years after we had won the licences, Rogers Wireless dominates the field. PART FIVE Back To The Beginning The Ted Factor ..............................................................................................119 To answer the question I started with, how did all this happen? APPENDICES A. Off-base Off-shore ..................................................................................124 B. Prospects in the Pacific Rim....................................................................135 C. The Casino Gamble ................................................................................155 D. The Author’s Activities ..........................................................................160 E. Bibliography ............................................................................................163 8 WIRELESS IN WONDERLAND DEDICATION Edward S. (Ted) Rogers As has often been said, success has many claimants, but no one is more directly responsible for the ultimate success of what was then called CANTEL, now Rogers Wireless, than the late Ted Rogers. Where others’ faith faltered from time to time, Ted remained dedicated to the new wireless technology and the company that he and the other founders started. It is now the largest wireless communications organization in Canada, with more than eight million subscribers. Ted was the one most responsible for getting me involved in this incredible adventure. He and I had known each other since our college days at Trinity, Sigma Chi and elsewhere. He is remembered by everyone as one of Canada’s leading entrepreneurs – and by me as a wonderful friend. WIRELESS IN WONDERLAND 9 ACKNOWLEDGEMENTS As with any of my books, I take full responsibility for the ultimate text. There is no editor to blame and all of the opinionated opinions are mine. However, a number of people were very helpful in providing material from their own files. In particular, I would mention Roger Keay, recently retired Vice President, Technology at Rogers. Roger was one of the first employees of CANTEL.Also Bob Berner, Executive Vice President and Chief Technology Officer, Rogers Wireless, was one of CANTEL’s pioneers, and has been a good sounding board. Jeannie Hastie, the long- time Assistant to Ted Rogers, also was most helpful. In 1994, Alistair Dow was asked by Rogers Commu - nications to pull together some notes on the early history of CANTEL. He did this although the company never published any of it. He was kind Jeannie Hastie with Ted enough to send me copies and I have used parts of them from time to time. Finally, I would like to thank Connie Nesbitt who patiently typed my dictated text, and