Canada adds seventh wireless carrier

18.05.2010

An estimated 70 per cent of Canadians are wireless subscribers, leaving 30 per cent of the market -- roughly 7 million people -- up for grabs.

Mobilicity, Wind Mobile and Public Mobile are three of the four pure-play new entrants. Public Mobile, which spent $52 million on what many thought was less desirable PCS spectrum in the auction, is expected to shortly launch service aimed at so-called working class Canadians in Toronto and Montreal.

Three cable operators also bought AWS spectrum in 2008, including Western Canada-based Shaw Communications Inc., Atlantic Canada-based Bragg Group and Videotron, which serves the province of Quebec. These players will have the advantage of offering quad-play services of cable TV, VoIP, Internet and wireless.

Videotron has been reselling wireless service for several years from Rogers, but it now will be able to control its future with its own network. It's expected to launch service this summer. Shaw has said it will launch service at the end of 2011, while Bragg Group has been silent on its plans.

Mobilicity is trying to keep costs under control by outsourcing almost everything it can. Ericsson Canada, for example, is not only building the carrier's network but is also managing it.