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Wind launches with cheaper phone rates
"Welcome to a game-changing day,[link widoczny dla zalogowanych]," said Anthony Lacavera,[link widoczny dla zalogowanych], chairman of Wind Mobile parent Globalive, as he unveiled a giant statute of their "average" consumer: a young man with short, curly hair, aviator sunglasses, headphones, a hooded sweatshirt, a BlackBerry, jeans and sneakers.
Globalive's big three competitors, Telus,[link widoczny dla zalogowanych], Rogers and Bell Canada "set the bar low," Lacavera said. However,[link widoczny dla zalogowanych], it says the upfront price means Wind doesn't have to rope subscribers into long-term plans to recover the cost of the phones.
The company is offering four handsets at launch: the BlackBerry Bold 9700 ($450),[link widoczny dla zalogowanych], the HTC Maple ($300),[link widoczny dla zalogowanych], Samsung's Gravity 2 ($150) and the Huawei U7519 ($130). The data stick for Wind's laptop users will be the Huawei E181 ($150).
Lacavera has previously said the company was in talks to provide Apple Inc.'s iPhone, but no details were forthcoming at Wednesday's news conference.
Wind offers two plans for BlackBerry customers: a $10 a month "social" plan with unlimited text messaging, Facebook and MySpace, and an Internet plan for $35 a month with unlimited data.
As the Star reported Wednesday, it will also offer:
Wednesday's launch follows Globalive's successful bid for new wireless spectrum in a sector dominated by Rogers, Telus and Bell.
Globalive spent $442 million on licences and was the only potential new entrant with a national reach, although it did not buy spectrum in Quebec. Other companies, such as DAVE Wireless and Public Mobile, aim to compete mainly in urban markets.
Industry Canada had effectively approved Globalive as a new entrant. However,[link widoczny dla zalogowanych], in late October, the Canadian Radio-television and Telecommunications Commission ruled Globalive was a foreign-controlled company because its financial backer is Egypt-based Orascom Telecom Holding SAE. That ruling barred Wind Mobile from launching, without significant changes to its corporate structure.
Last week, Industry Minister Tony Clement announced the federal cabinet was overturning the CRTC's ruling,[link widoczny dla zalogowanych], allowing Globalive to go ahead without any changes to its structure or financing, a move critics and industry watchers said had allowed foreign ownership in Canada's strictly regulated telecom industry. Some industry watchers said the Conservative cabinet's move was "cowardly," an attempt to introduce competition without risking their minority government's decision in Parliament.
Canada's cellphone market is ranked one of the most expensive for users in the developed world: out of the Organization for Economic Co-Operation and Development's 30 member states, Canada ranked 28th in terms of affordability.
In earlier interviews,[link widoczny dla zalogowanych], Lacavera has stressed that cheap pricing is not his strategy. Rather, he says, his goal is to provide value for money, good customer service and clear billing. He did, however, say that over the next three years he expects to see prices drop by as much as 30 per cent.
Analysts have said that Canada's telecom sector cannot sustain this many players and that mergers or buyouts are likely as new entrants stir up the playing field,[link widoczny dla zalogowanych]. Bell and Telus are often cited as the most obvious candidates for consolidation.
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