It took him three tries - the first two went to voicemail - but Alek Krstajic finally made what's believed to be the first cellphone call in the country using an orphaned swath of wireless spectrum known as "G-block."

Standing in a downtown coffee shop today in front of reporters and analysts, the CEO of newly-minted Public Mobile attempted to put to rest questions about the company's plans to launch a low-cost wireless service in regions of Southern Ontario, including Toronto, and Quebec later this year.

In particular, Krstajic said he wanted to prove that the company's business plan - offering all-you-can-eat talk and text plans for $40 a month using specially-made handsets that are G-block capable - was technologically feasible.

The next step, said Krstajic, will be convincing the roughly 40 per cent of Canadians that don't currently own cellphones that Public Mobile, formally BMV Holdings, is an attractive and affordable option.

"Everyone could use a cellphone," said Krstajic. "No one should be denied its benefits."

Public Mobile, which plans to sell its service through a combination of its own stores and existing retailers, is not the only prospective wireless start-up that has its sights set on the low end of the market.

Following the federal government's auction of airwaves last year, several other players have announced intentions to challenge the existing Big Three wireless providers - Rogers Communications Inc., Bell Canada Inc. and Telus Corp. - in markets across the country. That includes Quebecor Inc.'s Videotron unit and new independents such as Globalive Wireless and John Bitove's DAVE Wireless.

Krstajic, a former executive at Rogers Cable and Bell Mobility, said a key advantage enjoyed by Public Mobile's is that it faces much lower start-up costs than its competitors at a time when financing is difficult to secure.

The company, which is also backed by U.S. investors and the Ontario Municipal Employees Retirement System, paid a paltry $52 million for its wireless spectrum licenses. That's about a fifth of what others paid in the same markets.

Dvai Ghose, an analyst at Genuity Capital Markets, said the real question facing Public Mobile is not whether its spectrum can be used to carry cellular traffic, but the degree to which the business will be economically viable.

In addition to the challenges face by all start-ups, he said the current lack of wireless equipment made to run on G-block spectrum means Public Mobile is unlikely to enjoy much pricing power with vendors.

As well, he noted that Public Mobile is attempting to build a business on a frequency band that virtually every other wireless carrier has elected to ignore.

"What Alek has to do is prove that he's right and they were all wrong."