For the first time in about 15 years, Canada is starting to see some more competition in the cell phone market.
Beyond Bell, Telus and Rogers (note that Rogers owns Fido) there were no options. By virtue of their technology, Bell and Telus were joined at the hip, so effectively there were two companies controlling the Canadian mobile phone market.
Now there are two new entrants of relevance – Wind Mobile, which is financially backed by Orascom, and Mobilicity, financially backed by John Bitove (a Canadian businessman having ownership interests in various real estate, media and fast food ventures) and some companies he is associated with. I have no idea what calculations this guy made to decide to get into the Canadian wireless market – if I had a billion dollars in my bank account, opening a wireless network would be fairly low on my list of economic priorities, at least if I wanted to generate a reasonable return.
Shaw is expected to enter the market a year or two later, presumably after they see what happens when the dust settles.
The two new entrants have started their operations in Toronto, being the largest market in Canada, but both are expected to operate in Vancouver later this year. It is not known whether Vancouver means “Metro Vancouver” or the “Lower Mainland” (i.e. including Abbotsford/Chilliwack) but in either case, the competition will likely result in a war of attrition where those with the deep pockets will be able to survive. Using this metric alone suggests that Bell/Telus and/or Rogers will be able to snap up the companies after there is enough bleeding, but in the meantime, the consumer is likely to see some cheaper cell service in the future.
Of note are the “internet on USB” type data plans offered – Wind Mobile has it for $55/mo, while Mobilicity has it for $40/mo for unlimited access. Rogers and other providers have it for roughly $50/mo for 2 gigabytes a month. I have no idea how much bandwidth I would consume in a month if it were to replace my cable modem.
I do note, however, that my notebook was on for 3.6 days (obviously I was not in front of the thing for that length of time!) but when I do a netstat -e, it shows that I’ve chewed up 3.1 gigabytes of download and 230 megabytes of upload data, so I suspect that 2 gigabytes a month would be a drop in the bucket if I were to get one of those sticks (26 gigabytes on a one-month basis). I have no idea why I took up so much bandwidth since I don’t have bittorrent or any related data-sucking applets running.