New Report Urges Canadians Not To Sign New Wireless Contracts

cellphone With the global economy in shambles and the Canadian economy barely hanging on, it would seem like less than ideal timing to be planning the rollout for a capital-intensive new wireless network. However, both Globalive and Quebecor continue to reiterate that their rollout plans are on schedule despite the cash/credit crunch that is still unfolding.

Public Mobile, formerly BMV Holdings looks to be the first new entrant to make it to market with a planned service launch for Fall 2009. Dave Wireless will be the fourth new entrant, but rollout plans and potential launch dates have not been announced, so it is reasonable to assume Dave will be the last to enter the market fray.

What seems clear now is that most of these new competitors will be discount brands whose main mantra will be 'unlimited minutes'. The rumored price-point battleground will be around $40 for unlimited talk and text. Not only does this 'all you can eat' strategy trump what current discount brands offer from Rogers and Bell (Fido and Solo), but it is also opens the door for more residential customers to question the need for a landline. In addition, these new wireless entrants seem focused on bringing prices down without forcing customers to sign long-term contracts, a welcome departure from the heavy-handed approach from incumbents Rogers and Bell.

A telecommunications report has warned Canadians that they should not sign any wireless contract. The report, from telecom consultancy SeaBoard Group, said that “Friends should not let friends sign wireless contracts” and that anyone who does will really regret it.

If you're thinking about signing a new wireless contract with one of the big players like Rogers, Bell or Telus, it is probably wise to resist the urge. Coming to a mall near you, there will be 3 or 4 new amigos named Public, Dave, Yak and Quebecor who will be fighting hard for your business. That can only mean good things for you and your pocketbook.

Quebecor Inc.

Public Mobile Inc.

Globalive Communications Corp.

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New Report Urges Canadians Not To Sign New Wireless Contracts

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