Last week Anthony Lacavera, CEO of Yak Communications (subsidiary of Globalive Communications Corp.) announced that his company will be participating in the upcoming wireless spectrum auction with the intention to become Canada’s next wireless provider. Lascavera went on to say, “Canada is one of the least competitive wireless markets in the world, cell phone rates are too high and penetration is too low. Many Canadians do not realize that they’re paying from 60 per cent to almost 80 per cent more than Americans for their wireless service.”
The auction takes place in May 2008 and if Yak wins will put them against current providers Rogers, Bell and Telus. The US is also going to holding a wireless spectrum auction in January 2008 and Google has announced they are going to be jumping into the race. Yak’s strategy will be to offer customers “no contracts, no gimmicks”, and leverage their existing customer based of dial-around, home phone, Internet and long distance services. Will it be enough to get consumers to switch? It will take a really strong marketing plan and deep dollars to sway consumer opinions to jump ship and move to a new player.
Hi Dave: Respectfully have to disagree with you on this one — Canada DESPERATELY needs more wireless competition. Look at the iPhone and the fact that we are nowhere near an introduction in Canada. My post on this: http://tinyurl.com/2hao7p
Before Fido’s first owner, Microcell, entered the wireless market in 1996, cellphones were a luxury and Canadians were paying over $100 for their monthly service. Then Fido launched with a $40/400min package (or was it $20/200? — one followed shortly on the heels of the first). The market reacted and rates came down.
From a consumer point of view, competition is always a good thing.
Now ask me if it’s a good thing that every 15 year old and her brother can chatter for hours at a time on their cellphone while riding next to me on the city bus, and I might have a different answer