Stating the (Wireless) Obvious
According to Moody’s, Canada’s wireless market is “an oligopoly”. And, not surprisingly, prices are twice as high as the U.S., which has caused market penetration (56%) to lag behind the U.S. (76%) Stop the presses, you mean Canada’s wireless carriers aren’t aggressively battling each other for business by offering consumers attractive deals? You mean all the talk among wireless executives about “disciplined pricing” is just code for raising prices higher so ARPU can be increased.
Well, wonders never cease. And I thought there was healthy competition within Canada’s wireless market as carriers fought tooth and claw for market share. Then again, the Canadian government did shrink the competitive landscape when it approved Rogers’ $1.4-billion acquisition of Microcell. And it’s not like the MVNO market has spurred more competition, although Virgin Mobile is really trying hard to be a pain the ass to Telus, Rogers and Bell.
Who knows, maybe the de-regulation of the local telephone market will cause home phone prices to increase, which, in turn, could make wireless service more attractive. Then again, there’s no indication wireless carriers will stop chanting the “disciplined pricing” mantra any time. As long as there’s growth left in the market, why offer deals when there’s no need for them?
Technorati Tags: Canada, Wireless
Written by Mark Evans on January 31st, 2007 with
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