Dave Dobbin, the CEO of Mobilicity Monday night said that in the year before entering the Canadian wireless industry they studied market entrants in countries around the world.
Canada’s wireless industry did not act anything like other countries though.
Maybe that had something to do with the fact that Rogers had about nine million subscribers, more proportionally than AT&T in the United States, and did not think twice about an emerging wireless competitor.
Mobilicity offered cheaper rates and better network service within major urban centres with AWS (advanced wireless services) which use two ranges of unique microwave frequencies.
Rogers countered that by releasing Chatr on July 27th, 2010 which was designed to compete with new entrants- would later be investigated by the competition bureau for false advertising and Rogers was fined to the tune of ten million in January of this year according to Dobbin.
Competition though, is the very thing that is needed in the Canadian wireless industry in order to promote better network connectivity, cheaper monthly rates and faster network speeds.
Dobbin says that Mobilicity has launched a Network Challenge in their Calgary stores that compares Mobilicity’s network connectivity to the Big 3 in Canada. Almost a third of the participants couldn’t tell a difference between the Mobilicity phone and Big 3 phone and of those who could over 90% liked the Mobilicity phone better.
Canadians on average still pay the most for mobile per month in the world, but wireless entrants like Mobilicity are making those costs cheaper by offering the total unlimited package for $60. That’s a flat rate and 40% of Canadians don’t open their wireless bills anyway according to Dobbin.
Imagine knowing what you have to pay every month for your mobile use versus fearing the bill.
As for network speeds, 4G is coming in Canada, but mobile leaders like Korea and Japan already have 7G.
To give you an idea of just how fast mobile is changing though, Mobilicity has already upgraded their line of products 2.5x in just under a year.
Dobbin says himself that he’s an Android guy, as the company continues to not carry the iPhone as it does not support AWS (advanced wireless services) which run on two different microwave frequencies.
Maybe that’s not such a bad thing for Mobilicity since Android is quickly taking over the smartphone market, and half (51%) of Canadians are loyal to Research In Motion’s Blackberry still in a January 2010 study announced at Ipsos Mobile’s session last week at the University of Toronto’s MARS Discovery District.
During the question period it was suggested that the merger between AT&T and T-Mobile could make AWS and iPhones a reality.
This all comes on the heels of $215 million dollars in new announced funding for the wireless start-up.
Can Mobilicity cut further into the Canadian Wireless Market?
Only time will tell, and upon close examination they certainly have a chance, at least.