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Public Mobile: “if you’re going to have one set of rules for him, have them for us as well”
Alek Krstajic, CEO of Public Mobile, appeared on CBC News Network’s The Lang & O’Leary Exchange to talk about their recent choice about asking the Federal Court to review and overturn the December 11th decision that allowed Globalive to launch. Some analysts say this filing “could drag out for months”.
Krstajic does make some valid points. He’s not looking to stop Globalive from launching their brand, he simply wants the same rights they have when it comes to raising outside capital. In fact, he believes all Canadian carriers should have the same access to foreign investment. In the interview he stated: “What the government essentially did was say the law that exists today that limits foreign ownership doesn’t apply. And if it doesn’t apply to the folks at Globalive, our view is it shouldn’t apply to any of us, from a fairness perspective.”
Here is an outline of the interview we captured:
Kevin O’Leary: “I like what you are doing from this context. I think business is war and you should pour boiling oil over your competitors everyday. So it’s a nice move you’re making. But in the end it’s not going to stop them from operating. That’s the issue here. Would you prefer at the end that these markets are opened up to all markets? In other words if you can get capital from abroad wouldn’t your cost of money go down? Wouldn’t the value of your franchise go up”?
Krstajic: Completely. And that’s exactly the argument. Look, let’s be really clear about this. Tony Lacavera is one of my best friends. I like the guy. I think the guy should be allowed to operate. All I’m saying is that if you’re going to have one set of rules for him, have them for us as well. Let me get foreign capital right now. I have American partners right now who would love to invest more money and they can’t because we have complied with the rules as we were told they existed and we can’t have any more foreign capital. What we want to do is force the government to say we made new rules in what we did, and we made them for Tony and the guys at Globalive, now let’s treat all, forget the new entrants, let’s open up these markets for the incumbents as well… we should have fair rules across the board.”
Kevin O’Leary: “If this works and you can get foreign capital behind all of the players, including yours. Will it solve the problem Canadians really have an issue with… When are we going to stop the madness and free Canadians of these outrageous pricing we’re forced to feed on?”
Krstajic: “We at Public Mobile have one rate plan when we launch… Unlimited Talk and Text for $40. That’s it. To the U.S. it’s $5.00 flat rate. If you want unlimited Canadian long distance it’s a $5.00 add on. If you want unlimited U.S. long distance it’s another $5.00 add on… we are building our network, we’re optimizing it and we’ll be up very shortly… I think the key right now is that we’re going to be in Ontario and Quebec, we would love to be in the rest of Canada, I need a bit more capital for that and would love to bring on some foreign capital.”
Interesting points as he just wants the same rules. Krstajic did give greater insight into their plans and offerings though. We already knew they would be offering a $40 flat rate talk & text plan at launch (will probably change when data devices arrive), but what is new is the long distance add-on prices.
What are your thoughts… Should all the carriers have access to foreign investment?
Discussion
16 comments for “Public Mobile: “if you’re going to have one set of rules for him, have them for us as well””
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I have no problem with a fair system where all companies can recieve foreign investment. It is still important to me that control of theses companies remain in the hands of Canadians.
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In retrospect, I think Globalive should be shut down. Their prices are not competitive at all, and obviously not having an effect on the big 3, as we see only price increases.
Why dont we just tell AT&T or any other american company invade our market? Thats essentially the same thing.
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What are you talking about? Prices not competitive? You must be with petro canada wireless. It’s a lot better than what is currently out there now and you’re not forced into a stupid contract. That alone is worth it. About 75 bucks for everything all in. Considering I’m paying about 120 with bell for the same thing.
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The law about foreign capital is obsolete and from another age. It has been clear for a long time that is was only beneficial to the incumbents RoBelUs – like anything the CRTC does. If you look back, Fido got bought by Rogers after T-Mobile withdrew due to the impossibility to invest more.
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PRICES NOT COMPETITIVE!? Are you crazy?! Are you telling me that you can get unlimited everything for 7 bux with any other company?! Actually, tell me can you even get unlimited ANYTHING with another company for ANY price?! Not competitive!!! PFFFT! They have the best prices ever. They are in most cases cheaper than plans when I was in the states!!! They will start to have an effect on the big 3 once they get bigger. For now the 3 are comfortable with telling people they are better because their network is larger. Just wait soon it will be different (As long as no one buys out globalive.)
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woops I meant 75 bux a month…
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I’ve been saying all along that the Globallive decision was wrong. They shouldn’t have been allowed to operate in the first place.
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Wow, $5 add on for unlimited long distance in canda, another $5 for US…
So Wind’s $45 unlimited north america plan is exactly the same except you can get a good phone.
I don’t understand public’s business model. Even when I thought it was $40 unlimited talk and text and included long distance with the one device and no possibility of data devices they just don’t look like they offer any real value.
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So Wind isnt competitive? Public mobile is offering the same thing as WIND except they DONT hAVE ANY COVERAGE?
So u rather see wind go down, and support public mobile with there 1 crappy phone,no coverage, and CDMA old technology?
Dumb
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This is exactly the same scenario as when the LD market was opened up to competition….Bell, BC Tel, etc….all compained the market couldn’t afford lower LD rates. It was a market disruptor (Ted Rogers and Unitel) that made the case to change the rules. The commission of the day outlined….”The Commission considers that more benefits would be achieved if the respondents were to implement their pricing strategies, but in a more competitive environment. Competition would not only provide a strong incentive for the respondents to continue to minimize costs, but would also offer users a level of choice and supplier responsiveness that cannot be replicated in a facilities-based monopoly environment. (CRTC, 1992a, p. 36)
It was 1992 and prices in the US for LD were well below what Canadians were being forced to pay.
We should be cheering on these new entrants to lead the charge to change old and antiquated rules.
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next this guy will appear on opera with a tissue in his hands. he should focus on actually starting the company rather than crying about why he cant get foreign money.
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maybe no one will invest in public because their business plan sucks? Dave is getting money, why can’t alex? When you are about to enter a market where there are thousands upon thousands of customers, you bring your “A” game. Don’t set up a web site with a piece of crap ZTE phone. Whoo hoo it has a calculator and an alarm clock? Canadians want affordable but they also want the newest devices. The ones that people rave about. Yes, I understand that taking some losses cuts into your profit margin but people will jump ship when you provide excellent service, value and a good network.
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Is anyone really that shocked, these companies are only here for one reason. Canada is an untaped resouce. lots of money to make and they are here to make it………..
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I say let foreign investment in with Canadian ownership. I can’t wait for the time when there is no roaming and no long distance between Canada and USA, hell we share the same country code, why not start being treated the same!
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I have no problems at all with foreign investors.. and even less with Globallive operating…
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I stopped supporting Public Mobile (on principle…never their business plan because it sucked from Day One) after they went on FOX News and carried on an implied-racist conversation.
Krstajic is an arrogant Bell goon and nothing more; his morals are flawed.
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