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Wireless carriers prepping for back
It is a bit early to be stocking up on school supplies, but Canada's wireless industry is gearing up to battle for an increasingly competitive segment of the national market backtoschool sales.
"They are all expecting a fight" said Iain Grant, managing director of The Seaboard Group, describing the increasing pressure in the wireless market and build up to prefall sales.
This year long dominant carriers Bell, Telus and Rogers face a trio of new entrants, Mobilicity, WIND and Public Mobile, all offering low cost or unlimited plans aimed at low to middleincome customers in urban areas.
All the carriers are expected to release new information on pricing, rates and phones to attract back to school buyers in the coming days and weeks.
Grant said the youth wireless market accounts for $2.8 billion in annual revenue, or 16 per cent of $17.3 billion industrywide, as reported in the first quarter of 2010.
More than half comes from the 20 to 24 age group, with 15to19yearolds accounting for a third. The rest comes from users aged 5 to 14.
Tapping into the student desire to use social media is what prompted Frank Meehan, chief executive officer of INQ Social Mobile, to launch of the company's first device into the Canadian market on Tuesday.
The INQ Chat 3G, is targeted primarily at users between 16 and 26 and provides a direct connection to sites like Facebook and Twitter. It is available through Koodo, Telus' flanker brand, for $50 without a fixed contract. But if customers leave the carrier in less than 10 months they have to pay some of the $150 discount they received on the device which retails for $200. Telus customers will be able to purchase the phone soon.
Meehan said except for Apple, consumers have tired of existing wireless offerings prompting huge thirst for new products.
"It is just a relentless focus and now it is shifting to the Internet and the market has completely opened up again," said Meehan.
Chris Diceman, senior vice president, DBRS, said Canadian wireless carriers see the backtoschool market as an "evergreen" source of new subscribers.
"I think we have only seen the beginning as far as the marketing intensity, that will likely increase throughout the second half of the year," he said.
Diceman said for university students the limited roaming capabilities offered by the new entrants' urban plans would be prohibitive. A potential wildcard for next fall is the potential entry of foreign owned carriers, he said.
Adding to this fall's fray is the announcement by Rogers that the carrier plans to launch an unlimited talk and text plan in urban markets dubbed Chatr.
The news spurred Mobilicity chairman John Bitove to send a letter from company lawyers cautioning Rogers against launching a product he views as competitively unfair and designed to push them out of the market.
"We are all up for fair competition. If you are a giant and taking advantage of your market position to try and eliminate small competitors that is the primary beef that we have," said Bitove.
Bitove said as wireless pricing continues to come down back to school seems to be the key buying period for students in high school or university.
Mobilicity offers low cost unlimited calling plans to east Asia and South Asia, which would be a good fit for international students, he said. Back to school offerings will come soon, he said.
Phil Hartling,[url=http://www.xantrex.cc]louis vuitton outlet[/url], senior vicepresident for Rogers' consumer segment, said in the last couple of years the backtoschool market has gone neck and neck with the holiday season. With the new entrants this year will as competitive, "if not more competitive," than years past.
"The reality is customers will be shopping for the best value and products that best suit them," he said. The company won't be releasing its fall line up for a "few more days" he said.
Grant said the Canada wireless market is clearly "highly prepped, toned and ready to go and eager for battle," but said their wont be a clear seasonal winner.

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