Verizon entry into Canadian wireless market

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Financial Post is reporting that U.S giant Verizon made an offer to buy Canadian Wind Mobile, do you think that Verizon, if he succeds to buy Wind Mobile would be a ‘game changer’ in the Canadian Wireless Technology.
http://business.financialpost.com/201...
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MatB

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Posted 5 years ago

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MatB

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So! what's your take on this information?
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mattjs

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Well, for starters, this info is already over a week old. Rumors about it have been going on for a few weeks before that. We've already mentioned it in a few threads, maybe do a search and you'll find the opinions you're after.
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MatB

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I did a search, could find any post talking about Verizon wanting to take over Wind Mobile!
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Chris Petersens

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There won't be any game changing. Verizon shareholders won't take lightly if the execs piss their money away in the tiny, tiny Canadian market. It's a bit absurd though that Verizon could potentially get access to subsidized spectrum. I don;t think the Americans would let bell, rogers or telus to get the same deal in the US.
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Erwin

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Even if they buy Wind, lets say they already own it. They will have to spend millions of dollars to expand and improve their mediocre coverage.
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SkAshe

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You know that Verizon have tons of money right?
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Some random Mobile Master, Mobile Master

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You can bet on Verizon making agreements with the Big3 to fix prices before they even enter the market. Verizon's in it to increase their overall customer base and profits, nothing else (as is the case with any for-profit company). Don't count on any price war even if they gobble up Wind+Mobilicity+PublicMobile on one fell swoop. Where I live we have Ultramar, Shell, PetroCanada, Irving and a couple of smaller players, and guess what? They all sell their reg. gasoline for the same price. Even if Christian Paradis desperately wants a 4th player in Canada, he will get it one way or another, but it will only be the Big4 instead of the Big3.

Canadians are used to high prices and those men in suits are well aware of this. Don't worry guys, you'll still get your $70+/month plans.
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Some random Mobile Master, Mobile Master

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Yeah, you're right about the risk. With everyone's line tapped these days, it's going to be more difficult (or expensive! everyone has a price) to collude without getting caught.

I doubt they have big plans for Wind's spectrum though, what they're after is the upcoming 700MHz auction. Maybe they'll just keep Wind artificially alive to get their feet on Canadian soil. Maybe they'll just sell the AWS freqs to the Big3 when they're allowed to, since that's what they use for LTE (well, that, and 2600MHz for Rogers/Bell). I dunno. I'm only speculating anyway. Whatever happens though, it's going to be more interesting than the current state of immobilism.
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mattjs

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I think they bought Wind, and soon mobilicity (maybe?), so they have an initial customer base. They'll just migrate those customers over to Verizon automatically and grandfather their plans. You're right though, the real play is the 700mhz spectrum.
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Some random Mobile Master, Mobile Master

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Wait, it's already done??? The rumour was that they had made a bid, but is it a done deal yet?
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mattjs

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No No it's not done, I should have worded it differently. They're interested and reports are they're drawing up a $700m package. The new rumor is they want mobilicity as well. Interestingly enough, Bell, Rogers, & Telus shares all dipped this week on the back of this news.
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Some random Mobile Master, Mobile Master

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You almost caught me off guard there, lol! Yeah, we're standing on the same news then, no further development happened since the $700M bid leaked out last week. Still, the Robellus stock dipping because of that was quite entertaining, hehehe.
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Jorden, Mobile Master

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Honestly I don't think much will happen. From the get go they'll only have coverage in major cities and looking at their American plans online I don't see anything special with their post paid plans anyway.

I'd love to see some real competition but it won't be coming as quick as people believe it will with a purchase like this.
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Chris Petersens

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It's funny that the US has 2 major cell companies and things are just fine. Apparently some of you even envy them. In Canada we have 3 and we still don't like what we have. I doubt a 4th company in a tyny market like ours can survive in the long run, unless they buy one of the red, blue, green guys.
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Some random Mobile Master, Mobile Master

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@Chris: Although both Verizon and AT&T are much larger, I wouldn't say T-Mobile and Sprint aren't major players. In that sense, I'd say the USA has 4 major players, and hundreds of MVNOs. It's mainly the MVNOs that have attractive pricing and plans.

You're right though, a 4th player in our market will likely have minimal impact. However, I would love to be surprised! :)
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Chris Petersens

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Verizon and ATT have close to 70% marketshare. I'd say t-mobile and Sprint indeed are small with 10% each respectively.
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Some random Mobile Master, Mobile Master

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I'll give you marketshare, but I was mainly focused on number of subscribers. There are 10X more Americans than there are Canadians, so even with 10% each, that's still A LOT of customers! That's why I also consider them major players.
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mattjs

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What do you mean by "things are just fine", regarding the US market? I mean, they aren't horrible, but are they really good? I'd say they're pretty similar to Canada tbh, both countries would benefit from more competition. Canada and the US pay around the highest mobile service fees in the western world. I'd suggest that's directly related to the lack of competition in both countries...

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