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News Story
Unique cellphone maker hears call of Ottawa
By Scott Foster, Ottawa Business Journal Staff
Wed, Jun 16, 2004 12:00 AM EST

After devoting over $2 million to a "world-first" wireless project, a seasoned telecom entrepreneur from British Columbia hopes to bring his venture to Ottawa.

After considering what this city's wireless cluster has to offer, Jerry Sedmak, president of Curo Interactive Inc., is eyeing Ottawa as the ideal place to grow his new business and develop what he calls "the first of its type in the world".

Mr. Sedmak, a telecom business developer and co-founder of Kelowna-based Omega Global Communications, is so sure of his new undertaking that he has devoted countless hours and over $2 million (most of which comes from his own pockets) to Curo's single-button cellphone.

The B.C. entrepreneur says the concept and prototype that Curo has developed responds to a call from many cellphone users who crave simplicity. Ever since cellphones were introduced, he has heard from various people on different continents who ask about making the wireless devices less complicated.

"I always got the request 'Can you get me a simple phone with only a few buttons?' People want simple devices. It was the case back then and it's the case now. At the time, I really didn't understand what all that meant, but that's where the market pull came from."

Curo believes large segments of the world's senior population want cellphones that are easier to use. It's a market that comprises 85 million potential customers, says Mr. Sedmak. The firm will also target the visually impaired, of which there are between 10 and 11 million in North America, and the disabled (between 55 and 58 million in North America).

The actual device has no screen, just a single button with audio prompts that takes the user through a host of options, such as pre-programmed phone numbers. When users hear the right prompt, they press the button to accept it.

Michael Inskip, vice president of business development at Curo, suggests carriers haven't considered this type of product before. Instead, they place more emphasis on SMS, e-mail and video games, he says.

"But I know when I say to my grandparents that this is an (affordable) single-button phone, they'll be interested in it."

Mr. Inskip adds the device will be affordable because "when you take away the keypad and display, costs come down dramatically".

Joe Greene, vice president of Canadian telecom and Internet research with IDC Canada, says the device holds promise.

It is especially promising if it eliminates a screen that the visually impaired may have difficulty seeing, or simplifies things for a senior who didn't grow up using a cellphone, he says, adding recent IDC figures show 48 per cent of Canadians over 60 years of age own cellphones.

"Anything that simplifies that process has some merit and will help (Curo) penetrate those marketplaces."

As for whether the device is a world-first, Greene says he and his colleagues have never heard of anything similar to what Curo is proposing.

Curo is receiving advice from five universities in the U.S. and one in Canada, says Mr. Sedmak, adding those U.S. institutions have audio user-interface and wireless divisions specifically for the disabled and senior populations. Schools such as Georgia State are spending "hundreds of millions of dollars on this", he adds.

"It's obvious in the U.S. that their market is huge."

Helping matters are recent laws in the U.S. that require those who sell technology to the federal government to have certain accessibility standards for disabled people, he says.

The firm is currently in talks with a contract manufacturer in Ottawa and plans to approach local venture capitalists in the coming weeks. There has already been some positive response from local angels, says Mr. Inskip.

The startup has six staff members, half of which would move to Ottawa if a lead investor can be found here, says Mr. Sedmak, adding the company needs about US$4 million to go ahead with a manufacturing agreement and start production.

Curo has applied for patents in 30 countries, most of which are pending. In the U.S., the firm just received notice that both of its patent applications have been approved.


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