androiduk
Senior Member
I am always amazed how busy the Wind mobile phone store in the Holt Renfrew Centre is since it opened. Today though was amazing, with line-ups out the door. Compare that with the Bell store a few doors away. An article from the Financial Post below shows that Rogers is running scared, and rightly so. I wonder if new offerings from Bell & Telus are far behind. Whatever happens, it looks like for once, we're the winners.
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Rogers Communications Inc. announced Wednesday plans to launch of a new discount cellphone service it hopes will sap demand for rival offerings from a host of upstart wireless providers.
The service is called “Chatr” and will offer unlimited voice and texting with no contracts, a "category" the country's largest wireless provider says is growing.
"Chatr will offer voice and text only, and unlimited pricing options without term contracts within defined chatr zones," the company said in a release Wednesday afternoon. Details on the geographic footprint of the discount brand's home zone, as well as handsets and pricing will be made available at a launch slated for "later this summer."
Rogers said the brand is part of a strategy "targeting distinct market segments." That is perhaps code for Rogers moving to more aggressively pursue low-income, working class and immigrant communities within large cities and suburban areas.
The demographic groups are the most prized customers of a cast of independent new wireless players that have launched across several markets this year. Since their respective launches, Wind Mobile, Mobilicity and Public Mobile have been having the greatest success in winning over such customers with cheap, simple plans and handsets.
Public Mobile for example offer unlimited talk and text for a flat $40 a month. It sells no smartphones or data plans.
All three newcomers paid hefty sums to acquire spectrum licences in 2008 in a federal auction designed to introduce new competition to Canada's $16-million wireless market, derided in recent years by critics who say prices are high while services lag.
Chatr will complement Fido, Rogers original discount brand which will remain, the company said.
How competitors respond to the new brand is uncertain, but another round of price cuts may be on its way.
Analysts have expected that such a move will provoke re-pricing within other discount brands owned by fellow incumbents Bell Canada and Telus Corp. Bell owns the Virgin and Solo brands while Telus operates Koodo. All three so-called "flanker" brands are found in malls and plazas across the country.
When reached, Bell Canada declined comment. A respond from Telus was not immediately available.
Wind launched in December with unlimited voice and data plans that undercut incumbents rates. Mobilicity and Public followed in may with similarly cheaper deals for consumers. Wind is currently available in Toronto, Calgary, Edmonton, Vancouver and Ottawa.
Mobilicity is available across the Greater Toronto Area while Public Mobile has opened stores in Toronto and Montreal. All plan to expand their coverage zones.
Sources close to another incumbent said Wednesday they were skeptical that another brand could be supported, especially in places like Toronto and Montreal where there are no less than eight already competing.
Read more: http://www.financialpost.com/news/R...hone+service/3221346/story.html#ixzz0sNQhBlOh
