New entrant Mobilicity is not keen that Rogers Wireless is planning to launch their new uber discount brand called “Chatr”. The Globe is reporting that Chairman John Bitove said he’s going to file a complaint with the Competition Bureau if Rogers proceeds. “They’re trying to destroy our success” Bitove said. In the “Abuse of Dominant Position” in the Competition Act it states that the “use of fighting brands selectively on a temporary basis to discipline or eliminate a competitor”.
Chatr will be launching in the same cites as Mobilicity has: Toronto, Calgary, Ottawa, Edmonton and Vancouver. In addition, they will offer similar no-contracts and low cost price plans. You can check out the images we were sent that shows Rogers new Chatr brand is directly competing with Mobilicity (and also with Wind and Public Mobile).
I’m sure all the new entrants and incumbents have looked into some sort of legal action. A few days ago Wind Mobile Chairman Tony Lacavera stated that “Chatr” is “great for consumers. We’re achieving our business plan here of creating competition in wireless. The big guys are starting to react and the more they start to react the better we look. I’m really excited about it and I’m ready to compete.”
Competition is certainly here… what are your thoughts?