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Verizon entry into Canadian wireless market


Userlevel 1
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/2013/06/26/gold-prices-record-quarterly-drop/?__lsa=bf6f-26e2

22 replies

Userlevel 1
So! what's your take on this information?
Userlevel 2
MatB wrote:

So! what's your take on this information?

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.
Userlevel 1
MatB wrote:

So! what's your take on this information?

I did a search, could find any post talking about Verizon wanting to take over Wind Mobile!
Userlevel 6
MatB wrote:

So! what's your take on this information?

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.
Userlevel 6
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.
Erwin wrote:

Even if they buy Wind, lets say they already own it. They will have to spend millions of dollars ...

You know that Verizon have tons of money right?
Userlevel 6
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.
Userlevel 2
Some random Mobile Master wrote:

You can bet on Verizon making agreements with the Big3 to fix prices before they even enter the m...

They won't openly make agreements to price fix, that's collusion and illegal. Doesn't mean it won't happen 'organically' though. The same thing happens now, it's not like Bell/Telus/Rogers sit down and decide they won't lower prices, it's a give-in that if nobody offers anything of significantly greater value, then they can keep prices the same and everybody wins. Verizon will do doubt offer more attractive plans initially, which will automatically be matched by the big three and their sub-servant value brands, but I suspect within 3-6 months or so after Verizon launches everything will go back to where it was previously. $70 plans for all!
Userlevel 6
Some random Mobile Master wrote:

You can bet on Verizon making agreements with the Big3 to fix prices before they even enter the m...

@mattjs: Of course, [i]agreements won't be made public, they'd not want to get caught. They will happen though, that's why I doubt there's gonna be deals or rebates even at their launch party. I remember when Videotron bought their AWS spectrum in Quebec and launched in 2010. They bid so much higher than everyone else that Wind had to stay out of the province. And they had absolutely no added value with their initial plans over what every other carrier was offering. Nothing. The plans were that bad. Only just recently did they come up with something worth a 2nd look. And it took all of 3 years. Even then, their deal is not even on par with what Wind is offering (and they have even more limited coverage). Anyway, as far as Verizon is concerned, be prepared for locked-bootloader phones with many disabled features in firmware (they [i]really want you to pay extra for tethering the data you're already paying for). They'll probably bring something new though. Different? Yes. Cheaper? Heck no!
Userlevel 2
Some random Mobile Master wrote:

You can bet on Verizon making agreements with the Big3 to fix prices before they even enter the m...

We'll have to just see how it plays out I guess. Videotron was in a unique situation operating only in Quebec, so I'm not sure that tactic would be viable for a nationwide provider. Verizon NEEDS to gain customers initially, if they don't offer any discernible value compared to their competitors why would anyone switch to them? I'm sure some people will give them a try just because they're new and unhappy with their current provider, but Verizon really isn't going to shell out money to enter Canada to just pick up a few stranglers. Regarding the secret 'deals' with the competitors, I'm just not sure if it's even worth attempting, the same outcome can easily be achieved by just doing what the Big 3 already do, if nobody lowers prices everyone wins. Why risk federal charges? Time will tell....
Userlevel 6
Some random Mobile Master wrote:

You can bet on Verizon making agreements with the Big3 to fix prices before they even enter the m...

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.
Userlevel 2
Some random Mobile Master wrote:

You can bet on Verizon making agreements with the Big3 to fix prices before they even enter the m...

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.
Userlevel 6
Some random Mobile Master wrote:

You can bet on Verizon making agreements with the Big3 to fix prices before they even enter the m...

Wait, it's already done??? The rumour was that they had made a bid, but is it a done deal yet?
Userlevel 2
Some random Mobile Master wrote:

You can bet on Verizon making agreements with the Big3 to fix prices before they even enter the m...

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.
Userlevel 6
Some random Mobile Master wrote:

You can bet on Verizon making agreements with the Big3 to fix prices before they even enter the m...

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.
Userlevel 5
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.
Userlevel 2
Jorden wrote:

Honestly I don't think much will happen. From the get go they'll only have coverage in major citi...

A new carrier is a step in the right direction though at least, no? Isn't that's what's important?
Userlevel 6
Jorden wrote:

Honestly I don't think much will happen. From the get go they'll only have coverage in major citi...

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.
Userlevel 6
Jorden wrote:

Honestly I don't think much will happen. From the get go they'll only have coverage in major citi...

@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 [i]love to be surprised! 🙂
Userlevel 6
Jorden wrote:

Honestly I don't think much will happen. From the get go they'll only have coverage in major citi...

Verizon and ATT have close to 70% marketshare. I'd say t-mobile and Sprint indeed are small with 10% each respectively.
Userlevel 6
Jorden wrote:

Honestly I don't think much will happen. From the get go they'll only have coverage in major citi...

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.
Userlevel 2
Jorden wrote:

Honestly I don't think much will happen. From the get go they'll only have coverage in major citi...

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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