Globalive Communications Anxious To Challenge Canadian Wireless ‘Status Quo’

When Toronto-based telecom provider Globalive Communications ponied up $442 million in the recent Industry Canada wireless spectrum auction, many had to wonder what the strategy would be for populating their future subscriber base? There is no doubt that the Canadian wireless landscape has been in sore need of more competition for years with the triumverate of Bell, Rogers and Telus playing by their own pricing rules. However, the Big-3 are not taking the prospects of a more competitive landscape lying down.

Auction winners like Globalive, Quebecor, BMV and Bragg are inevitably going to find the wireless ground a little less fertile in lieu of the ongoing brand extension efforts of the Big-3. Rogers kicked off the brand extension party in 2004 when they acquired Fido from Microcell Telecommunications. Bell Mobility then followed Rogers’ lead and created their own discount brand called Solo Mobile in 2005. Telus took a little while longer to get in the discount/youth game launching Koodo Mobile in March of 2008. Of course there is also the maverick brand Virgin Mobile which has been operating in Canada since 2005.

What will the winning strategy be for Globalive? Perhaps the big focus will be on signing up customers who do not currently have a cell phone. While there are well over 17 million wireless subscribers in Canada, the adoption rate still lags behind the United States.

On a global scale, Canada’s rate of adoption of wireless telecommunications is lagging, with just under 52 subscribers per 100 inhabitants at the end of the first quarter of 2006, a level reached by the United States in the second half of 2003 (Statistics Canada 2006)

While launch dates or roll-out plan details are still quite murky, it is clear that Globalive and the other auction winners will be ushering in a long-awaited new chapter in Canadian wireless history, one with more robust competition and hopefully much happier wireless customers.

“Globalive’s approach has always been very customer-focused across all of our business lines and our plans for developing our wireless offering are built on that foundation” (Globalive CEO, Anthony Lacavera

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