In the News...

Wireless firms team up
New network offers strength in numbers for troubled sector
Business in Vancouver - May 06, 2002

Perry Quan knows about the difficulties facing young wireless companies. Indeed, when the Wireless Innovation Network Society of British Columbia celebrates its first anniversary in September, Quan -- the organization's president and director -- doesn't expect that all of its members will still exist.

"It's a challenging time right now," he said, noting the possibilities of bankruptcies and consolidation. "It's going to be difficult for emerging companies to survive."

Yet Quan, also the president and CEO of Port Coquitlam-based Contec Innovations, believes most WIN BC members will last. And the network should provide a helping hand in tough times.

Plummeting demand, lack of capital, slow uptake and product delays are just some of the wireless industry's persistent problems.

Rob Millham, a wireless analyst at Research Capital in Vancouver, said the market malaise can cause more trouble for start-ups. "In this environment, the availability of capital is particularly scarce for companies with unproven business models, without near-term visibility to profits."

But WIN BC is a positive for B.C.'s emerging wireless firms, many of which are based in the Vancouver area.

"Rarely can anybody make a go of it by themselves," said Millham. "Partnerships and alliances are extremely valuable."

For Contec, which develops software, allying with other WIN BC members is a key benefit. It's established a partnership with Vancouver-based Ucora Corp. for marketing and research and development. Other marketing partnerships have been set with Veratium, Clearigo and HyperWallet.

WIN BC officially started on September 17, 2001. It has about 50 regular members, which pay an annual $150 membership fee and provide a $150 in-kind contribution. Affiliate members, including Infowave, Motorola and Sierra Wireless, pay $500 a year. It's estimated that more than 100 wireless companies are in B.C., and "our intention is to sign up most of them," said Quan.

The network helps members collaborate on marketing, research and development, financing, and business development and sales. But will companies be wary to cooperate with potential competitors? Quan doesn't think so. "By learning about each other I think it helps them sharpen their competitive position," he said.

Collaboration, added Colligo Networks president and CEO Barry Jinks, "can build a better industry and stronger companies."

One of the most pressing topics facing young companies is access to much-needed capital. Quan says WIN BC has helped raise the profile of the province's wireless industry among the investment community. Some members, including Contec, Veratium and FatPort have recently won financings; Quan said that WIN BC "indirectly" helps such deals develop.

Richard Osborn, a partner at Greenstone Venture Partners, agrees that the network has increased its members' visibility. "I think that's the biggest value -- to try and have substantive interactions rather than just the usual cocktail party," he said.

Greenstone is an early-stage fund with wireless as a core investment area. "So [WIN BC] is perfect for us," said Osborn, who participated in a WIN BC financing roundtable earlier this year. The firm hasn't signed any deals with network members - yet.

"We've had a number of follow-up meetings with folks that we've met there," said Osborn.

Workshops on intellectual property and software development have been held, and networking events are another feature. An "equipment zoo" is also in the works. This permanent facility, planned to open later this year, will showcase WIN BC products. In addition, it will feature a technical lab for companies to test their offerings.

WIN BC participated in a recent trade mission that visited Hong Kong, South Korea and Singapore. It strengthened ties with the Hong Kong Wireless Technology Industry Association. Next, Quan wants to see such collaboration on a "company-to-company" basis. "When we first formed the organization, we actually had smaller goals and ambitions than what we have today," said Quan. "But we're prepared for the challenge."

For more information, visit Web site at www.winbc.org.