Cell phone competition obviously intensifying
Posted in Commentary on March 28th, 2011 by Sacha PeterRogers’ shell, Fido, is offering a $35/month “unlimited” package for both voice and text messaging that allows people to use their phones within certain urban zones. This is undoubtedly a response to Wind Mobile and Mobilicity coming into the scene with similarly priced packages.
Since cell networks are virtually indistinguishable in terms of quality when you are connected to the network, the only avenues of competition involve geography (e.g. out in Chilliwack there is still no competition between Telus, Bell and Rogers since the new network providers have not expanded out there), but in the urban zones the competition is intense.
There also is data service competition, but this is lesser so because of bandwidth constraints on mobile equipment. Eventually when capacity is higher there should be price compression on the data side as well.
The government decision to only allow new companies to bid on certain chunks of wireless spectrum is allowing the consumers to win with the intensifying competition. Eventually the “party” will end when the new carriers will likely get eaten up by the old ones, but in the meantime consumers can enjoy the cheaper and better alternatives that are being offered amongst them.
Being the economical person that I am, I still think $35/month is too much to pay for mobile phone service – my monthly bill (assuming I don’t do any long distance) is about $25/month after HST.
