Wind Mobile, which is starting up service across the country during the coming weeks, will be fighting an uphill battle with entrenched incumbents and a plethora of newcomers all vying for customers, analysts say.
Canadians have long complained of high cellphone bills in comparison to much of the world. Many consumers were expecting Wind to make a serious dent in cellular service prices by introducing low rates and forcing competitors to follow suit.
But pricing packages offered by the company, which rolled out its service to much fanfare in Toronto this week and launches in Calgary today, aren't much different then what is already being offered.
A premium voice and data plan from Wind costs about $80 a month. That's similar pricing from many competitors, including Virgin Mobile, Koodo and Fido.
"Well, we expected a lot and got less than we'd hoped," said Iain Grant, managing director of the Seaboard Group. "Still, pricing is moving in the right direction."
Grant said he was buoyed by the company's "unlimited" data plan for smartphones, which has been priced at $35 a month (in addition to a voice plan) and will give customers up to five gigabytes of downloads, much higher than other plans.
He said the price will force competitors to think twice about their data offerings. Many cellphone companies cap their customers' data usage, some at about 500 megabytes, or one-tenth of Wind's threshold.
Roger Entner, head of telecom research for Nielsen, said average owners of the iPhone, one of the most data-heavy devices on the market, use only about 400 MB of data on a monthly basis.
While 500 MB - the equivalent of about 250 MP3 song files - might be enough for many of the smartphones available today, new devices and more data-hungry applications are on the horizon and having a plan that allows customers to take advantage of that is a good thing, according to David Lambert, a telecom analyst with Canaccord Adams.
"For someone who wants flexibility and wants to have flat rate plans, Wind is the way to go," he said. "I don't know how people are going to use it. The idea of unlimited (data) hasn't been available in Canada yet. But, clearly, to have access to unlimited data is going to attract some customers."
While Wind's data plans might be among the best, its coverage area has many holes. The company hasn't finished installing its cellular network and offers little coverage outside of downtown areas.
Making a call or using the Web browser on a Wind phone outside of its coverage area, which the company calls a "home zone," is costly. Outgoing and incoming local calls outside of the owner's zone will cost 25 cents a minute.
Using the Internet or receiving data outside of Wind's home zones will cost an additional 10 cents per 25 kilobytes. The additional charges are levied for the use of other companies' cell networks.
As well, Wind's cellphone selection is limited to four models, for which consumers must pay full price - no subsidies are provided.
One is a BlackBerry, but the company is not offering Apple Inc.'s popular iPhone or cellphones from such companies as Palm Inc., LG or Motorola. Also absent are phones running Google Inc.'s Android operating system.
It's unclear what phones may be available on Wind's network in the future, since the company uses "advanced wireless spectrum" technology, which is not compatible with the iPhone and many other popular cellphones.
Still, the Seaboard Group's Grant says Wind's introduction is only the first of many new cellular providers that will be popping up over the next few months.
Dave Wireless, which raised $75 million U.S. in new funding yesterday, is expected to open its doors to consumers early next year. Public Mobile, another discount cellular company, and Vidéotron, owned by Quebecor, are expected to begin operating in of eastern Ontario next year.
Grant said once all of the newcomers are operating, consumers will really see prices begin to fall and competition for customers heat up.
"We need Dave and Public Mobile and Vidéotron to launch. Then we shall see more of what was expected from Wind," he said.
Wireless Wars Ring It Up
How Canada's four discount mobile providers compare.
(Select plans from providers, which offer a wide range of voice and data services)
Virgin (Bell)
Device
BlackBerry Curve
Free on a three-year plan or $430 on a 30-day plan.
Monthly Fees: Basic voice plan: $15
Includes 50 "anytime" minutes and 50 text messages.
No system access fee.
Long distance: $10 for 100 Canadian long-distance minutes, $30 for unlimited long distance.
Complete voice and data plan: $50
Includes: 300 anytime minutes, unlimited calling evenings and weekends, 500 megabytes of data; no activation or access fees, no incoming text charges. Pick either unlimited text and picture messaging or voicemail and call display.
Koodo (Telus)
Device
Samsung Slyde
Free for long-term customers*;
$150 to purchase
Basic voice plan: $15
Includes 50 minutes, 50 text messages.
No system access fee.
Long distance: $20 for Canada-wide.
Data plan: $10
Includes: Unlimited web browsing.
*Company offers credits to loyal customers to upgrade their phones.
Fido (Rogers)
Device
BlackBerry Pearl 8100
Free on a three-year plan or $400 to purchase.
Basic voice plan: $15
Includes 50 minutes and 50 text messages.
No system access fee.
Long distance: $5 for 25 minutes of Canadian long distance, $20 for unlimited Canadian long distance.
Data plan: $10 to $80
Includes: Varies by price.
Wind (Globalive)
Device
BlackBerry Bold 9700
$450 to purchase
Basic voice plan: $15
Includes incoming text messages, 100 "Home Zone" minutes,
50 text messages.
No system access fee.
Long distance: Calls within Ontario included in basic $15 package. Free calling in Canada with $45 premium plan.
Data plan: $35
Includes: Unlimited data, but transfer speeds may be reduced above five gigabytes
