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Wireless : prices in free fall

Translated from November 7, 2010 article by Maxime Bergeron
Montreal - La Presse Newspaper

Phillip Huang, a UBS analyst, makes an arguement in a report published yesterday, in a few days of the release of third quarter results of Bell Canada Enterprises. He said BCE took a cue from Telus and Rogers by announcing a new price next week, which could exclude the controversial network access fees.

"We believe that the fourth quarter will be much more competitive for the Canadian wireless," suggests Mr. Huang.

Even if they remain among the highest in the world, the prices of cell phone are already in decline for several months in Canada. The average revenue per subscriber - a key measure in the industry - dropped by 3.9% in the third quarter, according to figures compiled by Merrill Lynch, reaching $ 54.85 CDN.

The decline is expected to continue - and even accelerate - in 2010, as and as new suppliers enter the market. Videotron, Public Mobile and DAVE Wireless, among others, all begin to offer wireless in the coming months, and promise to adopt more affordable prices. A necessity if they want to succeed, according to experts.

"Without a very aggressive pricing, new suppliers, especially those who are not cable companies will struggle to find their place," said Brahm Eiley, president of Convergence Consulting Group, in a report released this week.

Public Mobile will offer packages such as unlimited voice and texting $ 40 per month in Montreal and Toronto and elsewhere. Such offers incentives to businesses established to further reduce their prices, analysts said.

The general decline in prices will jump as the penetration of wireless in Canada, still among the lowest in the industrialized countries. He should spend about 68% today to 91% at the end of 2014, says the Convergence Consulting Group.

New at Bell

Bell has officially launched yesterday its new HSPA network - developed jointly with Telus - which enables it to offer more sophisticated devices such as Apple's popular iPhone 3G.

Wade Oosterman, President of Bell Mobility, reiterated in an interview with La Presse Affaires that Bell now had "the best network in the world." He is confident that consumers will recognize the new technological qualities of his company, but a marketing campaign is still in motion in order to reach Canadians, often scalded in recent years by the lack of service from Bell.

Oosterman has also refused to disclose whether the group actually let down its network access fees and 911 service $ 9.70 per month. Telus announced last week the end of this overload, in return for which it has inflated the price of $ 5 of his crimes. Rogers did the same in September, creating a new shot costs about $ 3 which eventually climb the bill its subscribers.

"Our plan is to remain competitive," said the president of Bell Mobility, without giving too much detail.

The firm UBS expects the average revenue per subscriber of Bell was down 4.2% in the third quarter, to $ 53.92.

According to Merrill Lynch, Canadians pay the bill for monthly wireless highest in the world, all suppliers after Japan ($ 58.76 CDN) and U.S. ($ 56.14 CDN). The world average was $ 33.92 CDN in the third quarter of this year.





Tronictel’s customer service has been extremely honest, informative and precise in their goal to reducing our mobile service charges, we are very satisfied with their professionalism and expertise. 
Dominic Keyserlingk,
Ville Marie Medical Centre
My BlackBerry is an important tool for me in my business. Tronictel helped me save from month to month without compromising my service. Thanks guys 
Robert Campana, President,
FlagPlus
Our cell phone cost is something we don’t have to worry about anymore. Tronictel reviews our bill every month and ensures we are continuously saving. If ever there are any irregularities with our bill, they make us aware and make certain that all charges are justified. 
Paul Malizia, Systems Administrator,
Rosmar Litho Inc.

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