Data & Audio Visual Enterprises Wireless Inc. (DAVE Wireless), the company formed by John Bitove and venture capitalists from the United States, this week announced that it has signed a licensing agreement with Bell Mobility for wireless cell-site sharing. (http://www.digitalhome.ca/content/view/4065/282/)

so theyre merely sharing land real estate and tower space, but not equiptment, dave will errect its own equiptment right?

That is certainly the way it was presented by DAVE.

I really don't see how this is going to benefit any startup...the tag line is "If there is space, and according to Bell's regulations"...which means they could easily say "NO"...like they have with the ISP's in the CO's. And if they DO allow it, they'd make the rent on the towers so high, DAVE would be forced to raise their rates to somewhere at the same level as Bell's.

I imagine Dave has also negotiated with Rogers and Telus and got the best deal. I'm sure they can also lease sites from Rogers and Telus and failing that build their own.

It's good for Dave because its cheaper than building a whole new infrastructure and its good for Bell because it reduces capital costs. If both firms can bring down capital costs then presumably they can both be more competitive with Telus and Rogers.

While it seems good now, it's probably bad for the future (unless of course, they're planning to be bought out a couple years' time)
ANY relationship to the other 'big boys' can go bad, fast. (à la Bell & wholesale ISP in the past 2 years)
Better to make the necessary investments up front to get your own towers and only lease where absolutely necessary (and on a temporary basis)

It's only good for Bell until DAVE starts outselling them, then they suddenly want to increase rent several times over, or just kick DAVE out completely.