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Growing Telecom Competitors Equals Cost Reduction for Most Canadians

Submitted by on Saturday, 12 March 20114 Comments
Growing Telecom Competitors Equals Cost Reduction for Most Canadians

Over the last several years a few paradigm shifts have taken place in the Canadian market space including the addition of more retailers, technology enhancements but most notably the entrance of large telecommunications plays such as Wind Mobile and Mobilicity. After entering Canadian soil for just over a year, there has been a dramatic shift in telecom all together.

The mobile industry was once dominated by three major players (Rogers, Bell, Telus) who have been given the name “Robellus” to better describe the three. They were able to charge ridiculous fees understanding that Canadian had limited options. The most notable shift was when Wind Mobile entered the Canadian space with some of the best packages in the market. It made it difficult for Canadians to resist the tempting offers including porting credits, windtabs, back to school promos and a fairly decent assortment of phone for a new company. This is a clear indication that Canadian’s have more choices and in most cases will pay less for a comparable service. Granted the new entrants have much work to do on their network and expansion but for a company that is just a little over a year, they have made a significant contribution to cost cutting initiatives in Canada. This has forced some of the other carriers to lower their prices. Once companies like Wind solidify their network, I would be surprised if Robellus didn’t further lower prices and offer a more direct comparable offering.

The main competitive advantage that “Robellus” has today (further to larger network) is the support of the iphone and ipad which aren’t available in AWS frequency at the moment. However, as companies like Wind, Mobilcity and fellow US AWS provider T-Mobile gain market share, they will surely get the attention of Mr. Jobs in hopes that the next device will be AWS compatible. RIM today provides AWS compatible phones which has given incentive to many Canadians to switch carriers and kick Robellus to the curb.

If you step back and really take a look at what’s happened over the last year, its a clear indication that the future will provide Canadian’s more options. Who would have thought that unlimited data (subject to fair usage) and voice could be possible at $40-$45 dollars a month. Isn’t Telus charging $30 just to have a basic 500MB data plan? I’d personally like to thank the new entrants for helping to lower the price on mobile plans. As a matter of fact, while I’m typing this i’m using my windspeed data stick. The future is looking better for us. Understand they still have quite a ways to go but stay positive and it will only get better!

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  • Mike R said:

    This is very true. That’s why services like Chatr opened up. We have high cell costs in Canada. Hope companies like this can help drive down the price

  • edgar friendly said:

    True Mike R, but don’t forget that chatr is a subspecies of “Robbers” created to compete with wind. And a poorly planned effort with substandard devices and prehistoric 2g network.

  • Hank Moody said:

    Great post. the shift has been interesting to watch. We have even seen Robellus lower the prices on handsets as a lot of us want to be contract free. Its about damn time, I cant wait until the wind zone is the whole country. The hanset selection will get better. Americans complain about T-Mo’s handset choices as well. As far as I know AWS a frequency exclusive to North America.

  • Shane Wilks said:

    Hit the nail right on the head. I’m with Mobilicity and I know Wind is great as well but I was abused and mistreated when I was with Telus. Their customer service were outright rude. I’m now with Mobilicity and yes they have their kinks to work out, but they are friendlier and most of all cheaper. Better value for the money, the big three will come down to their knees one day and follow suit. Thanks for the post, put a smile on my face and its good to know our Country is getting smarter.