A new report has surfaced regarding the future of Canadian wireless. DBRS says that new competition such as WIND Mobile, Public Mobile, Mobilicity and Shaw will put pressure on the incumbent players and take between 7% and 10% of their market share by the end of 2015. Rogers, Bell and TELUS currently have 96% of the market and the report says it could fall to 88%.
In addition, wireless penetration will also increase by 2015 to an estimated 80% or 30 million Canadians, compared to the current level of 67% (22.9 million).
Chris Diceman, Senior Vice President at DBRS said “While there will be more players at the table. The table itself is expected to grow at a rate of 5% per year to 2015. Those carriers that are best at adapting to competitive and technological changes will not merely survive, but thrive. There is plenty of room for growth left in the Canadian wireless market over the medium term. With their national networks and track records of innovation, it will likely be the incumbents that push these initiatives, while the new entrants try to scale their businesses from a significantly different cost base.”
More here at DBRS
The bulk of new wireless subscriptions will probably be taken up by Videotron in Quebec and Shaw in the West (mostly because of their cable tv/internet bundles) but unfortunately I don’t see Wind and Mobilicity making inroads anywhere outside of Toronto and even there I have my doubts they’ll perform well.
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I’ve been with Telus since 2003, and will NOT be renewing when my contract expires in February.
Count me in for one of the new entrants. I’d rather pay for my next phone upfront, than lock into mediocre service for three years in exchange for a discounted handset.
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Where the f*&K are they pulling these numbers from..
NO..this will never happen.
I’m not in favor of the big 3 by any means, but this projection is ridiculous.
1) by 2015 there will be only ONE new entrant that operates and is owned independently (WIND)
2) 10% of a projected 30 million subscribers for any one new entrant in the Canadian marketplace is un-realistic at best.. Maybe in the U.S. but not Canada.
Most of these guys are waiting to be absorbed by the big three through buy out/acquisition. The only kid on the block with the balls and bank to last till 2015 is Wind. Pending a new U.S or EURO entrant coming in the next year or so (wink wink) the current players are dreaming of achieving this status.
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I switched to WIND after 3 years with Rogers and 5 years with Bell. No more of the dreaded “airtime watch”, no more waiting for “evenings and weekends”, unlimited text in/out, unlimited data…all for $29/month.
And if I travel outside the GTA, my roaming charge is 15 cents/min, not 30 or 35 cents/min. Even in the US, it’s 15 cents, while Bell and Rogers charged me over $1/min.
Life is good with WIND.
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