Craig Wireless Systems Ltd. a Winnipeg-based company, said Friday it has sold all of its 2.5 Ghz Canadian spectrum to a consortium called Inukshuk, headed by two of the country's biggest incumbent wireless carriers.

The future of Craig's planned WiMax deployment in Palm Springs, Calif. isn't known. It also has spectrum interests through subsidiaries in Greece, Norway and New Zealand. A company executive couldn't be reached for comment.

Craig Wireless gave no explanation for the move, but it has been in financial trouble for years. "This sale is very supportive of the company's strategy to create value for shareholders through a portfolio of spectrum investments," Boyd Craig, who is co-CEO with is brother, Drew, said in a press release.

Craig Wireless operates fixed wireless Interent service in Vancouver and Winnipeg, Man., where the company is headquartered. It uses a proprietary fixed wireless system which the company has wanted to upgrade for years so it can increase subscribers.

Last September a company executive said a WiMax-based network using the 802.16e standard was under construction using equipment from Motorola Canada. In February the company said the network was up and would start commercial service early in the second quarter.