New wireless players' low prices not sustainable over long term: report
(Canadian Press DataFile Via Acquire Media NewsEdge) MONTREAL _ A new report says Canada's small wireless companies have undercut Rogers, Bell and Telus by more than half on voice and data prices in recent years, giving consumers lower cellphone bills _ but these prices aren't sustainable.
The report by the Convergence Consulting Group says Wind Mobile, Public Mobile and Mobilicity _ which is now under creditor protection _ can't keep offering "dirt cheap" prices and stay in business.
As a result, the report says, the new players will have to bring up their prices to survive and expand their networks.
The report says that despite lower prices, the new players haven't been able to take away significant marketshare from Rogers (TSX:RCI.B), Telus (TSX:T) and Bell (TSX:BCE), which offer consumers bundled packages that include home phone, Internet TV and cellphone service.
It's forecasting the new entrants will have seven per cent, or 1.93 million wireless subscribers at the end of this year, up from six per cent at year-end 2012.
Rogers, Bell and Telus have more than 25 million wireless subscribers between them.
(c) 2013 The Canadian Press
[ Back To Technology News's Homepage ]