Mobilicity Agrees to be Sold to Telus

[elvis15]

Because the Big 3 can screw off, that's why.

Well that sounds like a credible and well-thought out argument.

No, he's right. Why would you want to automatically jump on board with another company without even knowing what their prices/service are like, for all you know they could be just like the big 3. In fact, a large company like Verizon like wouldn't come to Canada and blow the doors off everyone with these insanely low prices that everyone likes to imagine, they're gonna wanna maximize their profit margins just like the big 3 do.

Exactly. Don't just do something because you're mad at the alternative - or worse, you're under the impression that it'll be better because you heard someone else say it on an internet forum. Do your own research and find out if it's the right option for you.

Honestly, if Verizon or some other American company is that much better than the great evil of the big three in Canada, why not get a US phone and add a roaming package? Does that sound like a sensible solution? Does that sound more or less sensible than automatically committing to a new company who hasn't even entered the market yet, let alone announced price plans, coverage or phone selection?

[Mr. Ambien]

Well that sounds like a credible and well-thought out argument.

Exactly. Don't just do something because you're mad at the alternative - or worse, you're under the impression that it'll be better because you heard someone else say it on an internet forum. Do your own research and find out if it's the right option for you.

Honestly, if Verizon or some other American company is that much better than the great evil of the big three in Canada, why not get a US phone and add a roaming package? Does that sound like a sensible solution? Does that sound more or less sensible than automatically committing to a new company who hasn't even entered the market yet, let alone announced price plans, coverage or phone selection?

What are you talking about? Corporate fanaticism really teaches companies to stop screwing the little guy!

What's going to happen is Verizon is going to roll into Canada on Gandalf's white horse and save Middle Earth from the evil Sauron Big 3, cuz you know, Target, Best Buy, Safeway, Sears, Lowe's, Home Depot, etc. all came to Canada saving it from these terrible Canadian-gouging companies.

[elvis15]

Here you go, Elvis:

http://www.newswire.ca/en/story/1143377/wind-mobile-mobilicity-public-mobile-withdraw-from-canadian-wireless-telecommunications-association

Wind mobile made the following complaint about the regulations in Canada. They are the 'fourth' biggest mobile phone company in Canada and they are pulling away from Canada. What makes you think that the big three aren't meddling in this?

...

So, what they're saying is they had objections and concerns (not sure about what since the article you posted doesn't cover that) they felt the CWTA didn't represent their interests on fairly. Well, that settles that about the industry "punishing all other companies not named Bell, Rogers and Telus."

Here's a counterpoint: TELUS is no longer a part of the CWTA. Rogers was considering leaving as well (last I heard Bell wasn't planning on leaving at all). I guess they're done meddling?

[goalie13]

Wind mobile made the following complaint about the regulations in Canada. They are the 'fourth' biggest mobile phone company in Canada and they are pulling away from Canada. What makes you think that the big three aren't meddling in this?

, April 10, 2013 /CNW/ - After careful consideration, WIND Mobile, Public Mobile and Mobilicity today announced their withdrawal from the Canadian Wireless Telecommunications Association (CWTA).

The three mobile service providers say the move is a direct result of their long-standing, mounting frustration with the CWTA's consistent bias in favour of Rogers, Bell and TELUS on a wide variety of issues. From this point, the CWTA does not, and cannot claim to, speak on behalf of the Canadian mobile wireless sector.

Telus pulled out of the CWTA too. It's really just a Bell & Rogers partnership now.

http://mobilesyrup.com/2014/02/28/telus-withdraws-from-the-cwta/

http://www.iphoneincanada.ca/carriers/telus/telus-pulls-out-of-cwta/

Edit - Elvis posted it first.

[ShakyWalton]

Im with Mobilicity now..bought my phone outright from them and I like the fact there are no 2 year plans..I pay 39 a month for unlimited long distance in North America and unlimited texting...the only thing I dont like is the roaming charges in Canada..actually I live in the Lower Mainland and there are roaming charges in certain areas,,but I like the fact Im not tied into any plan....I dont want to go to Telus and get tied into one of there BS plans.

I guess its time to start looking for a new carrier..Wind could be an option.

[goalie13]

Im with Mobilicity now..bought my phone outright from them and I like the fact there are no 2 year plans..I pay 39 a month for unlimited long distance in North America and unlimited texting...the only thing I dont like is the roaming charges in Canada..actually I live in the Lower Mainland and there are roaming charges in certain areas,,but I like the fact Im not tied into any plan....I dont want to go to Telus and get tied into one of there BS plans.

I guess its time to start looking for a new carrier..Wind could be an option.

Correct me if I am wrong, but doesn't every carrier offer no-contract plans if you buy the phone outright yourself?

I got my original phone from Telus on a 3 year deal but long after that was done I bought my next phone outright and I am still on the same month-to-month plan. No new contracts that way.

[ShakyWalton]

Correct me if I am wrong, but doesn't every carrier offer no-contract plans if you buy the phone outright yourself?

I got my original phone from Telus on a 3 year deal but long after that was done I bought my next phone outright and I am still on the same month-to-month plan. No new contracts that way.

I guess you could be right...its the first time I bought my phone,,previously I was with telus on a 3 year plan and was tied in...I guess I could take my phone to another carrier and get the same...not sure....but it sounds logical.why would you be tied in to a plan with your own phone.

Thats the thing, can you take your own phone to another carrier?

[elvis15]

Correct me if I am wrong, but doesn't every carrier offer no-contract plans if you buy the phone outright yourself?

I got my original phone from Telus on a 3 year deal but long after that was done I bought my next phone outright and I am still on the same month-to-month plan. No new contracts that way.

Nope, you're right.

I guess you could be right...its the first time I bought my phone,,previously I was with telus on a 3 year plan and was tied in...I guess I could take my phone to another carrier and get the same...not sure....but it sounds logical.why would you be tied in to a plan with your own phone.

Thats the thing, can you take your own phone to another carrier?

They might list that $100 price on the sheet by the phone when you walk in, but there's always been the option to just buy the phone and then go on month to month service.

As far as taking your phone to another carrier, assuming the new carrier runs the same frequency as your current one you can unlock your phone and take it with you. For instance, Mobilicity's frequency is the same as Wind's network, but different from the big three so you'd only be able to take your current phone to Wind but would have to get a different phone to go to one of the other main carriers.

[DefCon1]

Yeah, no PR department for me, just asking people why they'd make ludicrous statements like they'd prefer something sight unseen over anything we have now.

Because it can't get much worst than this. $100 for voice and data? give me a break.

[DefCon1]

People seem to think this deal was to reduce competition. Mobilicity is bankrupt after 4 years in business. They have been under creditor protection since Sept last year. They arent being "swooped up". They offered tenders to companies to bid on buying them and Telus had the best bid. They had no other options left to them.

If Verizon or another big US tellecom came to Canada they would offer all kinds of deals to start off and within a year or two the big 3 would be the big 4. Same old deals, different name.

Verizon would probably be a bit smarter and offer better deals compared to the big 3 so it can lure away customers that are still with the big 3. Verizon has the funds and could easily afford better rates. The fact is that Verizon would be coming into Canada to gain a lot of customers so it would be worth it. They wouldn't expand into Canada if they were only going to gain 1 million customers and were sharing the pie with the other big 3. If Verizon was to expand into Canada, they would probably want the whole pie and to get the whole pie, they would offer better deals to distinguish themselves from the big 3. That would also take more than 1 year since a lot of people are locked into 2 year contracts. Verizon would also offer something that neither of the big 3 could ever afford to offer. That is the unlimited North America roaming.

[ronthecivil]

Unless the government approves the sale you are all getting ahead of yourself.

And I am no Harper fan but they have made a point of selling spectrum to as many people as possible that are not the big three, reduced maximum contract length, and done a decent job of trying to reign them in.

Keep in mind if you own mutual funds in Canada there's a good chance they are part of your rich dividend stream that gives the good returns. And you can bet if you are part of any pension fund they own at least one if not all three of the companies as part of it.

So needless to say a balancing act needs to be done and the government hasn't done THAT badly with it.

[elvis15]

Verizon would probably be a bit smarter and offer better deals compared to the big 3 so it can lure away customers that are still with the big 3. Verizon has the funds and could easily afford better rates. The fact is that Verizon would be coming into Canada to gain a lot of customers so it would be worth it. They wouldn't expand into Canada if they were only going to gain 1 million customers and were sharing the pie with the other big 3. If Verizon was to expand into Canada, they would probably want the whole pie and to get the whole pie, they would offer better deals to distinguish themselves from the big 3. That would also take more than 1 year since a lot of people are locked into 2 year contracts. Verizon would also offer something that neither of the big 3 could ever afford to offer. That is the unlimited North America roaming.

But that's just it, the number of customers they could gain versus the expense they'd have to build and maintain a network isn't profitable enough to do so without getting an in with not only a currently existing carrier's network, but also the spectrum they own and increased access to future spectrum.

Verizon has hundreds of millions in potential customers in the US versus tens of millions here spread out over a larger geographical area. Why do you think they'd be so interested in cutting their profit margin just to give you any kind of significant improvement in rates over other current carriers, and then sustain that once they've built a base?

Because it can't get much worst than this. $100 for voice and data? give me a break.

You might want to look at the plans that are out there. They certainly aren't all "$100 for voice and data" so you're overstating. I'd say with a quick look at their websites, $75-85 is more reasonable as a common rate plan with voice and data and there are certainly less expensive and promotional plans available.

[DefCon1]

But that's just it, the number of customers they could gain versus the expense they'd have to build and maintain a network isn't profitable enough to do so without getting an in with not only a currently existing carrier's network, but also the spectrum they own and increased access to future spectrum.

Verizon has hundreds of millions in potential customers in the US versus tens of millions here spread out over a larger geographical area. Why do you think they'd be so interested in cutting their profit margin just to give you any kind of significant improvement in rates over other current carriers, and then sustain that once they've built a base?

The bulk of the Canadian population is in major cities like Vancouver, Calgary, Edmonton, Montreal, Toronto, Ottawa etc. Verizon would probably offer services to those population dense cities and not bother with putting cell towers in the middle of no where. They could definitely afford what wind is trying to do and what mobilicity wanted to do. It all depends if the government wants to allow competition from companies outside of Canada.

[elvis15]

But they still want coverage when travelling on the highways linking those major cities. What do those customers do if they ever end up in between those areas? Turn off their cell because they can make calls, text or use the internet?

Would you consider Merritt the middle of nowhere? How about Squamish? Those are pretty popular areas with major music festivals recently that plenty of Vancouverites have travelled to. Speaking of Squamish, how about Whistler?

Even if Verizon went with the Wind/Mobilicity model they'd still have to pay to use the towers other carriers have in those areas. Those are extra costs that get passed back to the consumers. the other option as I already mentioned is no service at all, and when the population base is already 10 times less than their current base in the US, why would they limit themselves further to a subset of people who live in and never leave the major metropolitan areas? What's the point in even coming to Canada if that were the case?

The Wind/Mobilicity start up model isn't ever going to really challenge the national coverage of the other carriers. It's not like their just sticking with what they have either, as they're always expanding their coverage to more cities to get a larger customer base and limit the roaming areas in Canada. Only once they have reliable coverage in enough areas will they attract enough of the population to really be a competitor on a national level, but then considering the costs of expanding will their rate plans still be half as much when they have to maintain over twice the network?