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Freedom Mobile of Shaw Communications Inc. has launched two low cost wireless data plans that offer lower rates than those offered by the Big Three when the industry regulator ordered them to. offer a more affordable service. Thursday is his latest move to shake a wireless market that consumers have long complained about is comparatively unaffordable and dominated by incumbents.
Earlier this spring, in response to such complaints and a push by the federal government for increased wireless competition. The Canadian Radio-television and Telecommunications Commission has applied to Rogers Communications Inc., BCE Inc. and Telus Corp. to offer low cost and no data plans.
Freedom, which has 1.3 million subscribers in a global market of $ 31 million, was not required to participate in the proceeding. Yet his new offerings – a gigabyte of data and unlimited text for $ 25 a month and 250 megabytes of data, 100 minutes of conversation and unlimited texts for $ 15 a month – beat the incumbents' proposals, deemed "disappointing" and for comparison, Rogers offered 400 MB of data for $ 25, Bell submitted a plan of 500 MB / $ 30 and Telus now offers 600 MB for $ 30 or 250 MB of low speed data for $ 20. 19659002] "For customers who use their services modestly, the new entry-level plans announced today offer fair and affordable prices and offer far more value than low-cost and data-only packages. recently proposed by incumbents "President Paul McAleese said in a news release.
In regulatory filings earlier this month, Telus defended its proposal as "fully responsive" to the CRTC's criteria that the latest 4G LTE network technology would be available. e Shaw's lower price plans, however, come with a catch. Customers must sign up for an account and sign up for automatic payment from a credit card or bank account. If they do not, they have to pay $ 5 more per month on these plans and all of Freedom's plans go forward.
Shaw says that this "digital discount" makes it possible to offer lower prices. Shaw, who bought Freedom (formerly Wind Mobile) for $ 1.6 billion in 2016, announced that she had planned the launch of a low-cost plan for the return to the property. The school season, one of the two busiest periods of the industry
Freedom made its first big promotion during the holiday season last year by offering 10GB of data without wire for $ 60, an unprecedented transaction in Alberta, British Columbia and Ontario. The Big Three matched the case, triggering a five-day price war and mbadive consumer demand was in the habit of paying more than double for so much data.
Since then, promotions have stabilized. But badysts predict that Freedom's cuts could hurt revenue growth for incumbents, given that they are accustomed to seeing average billing increase each quarter.
Up to now, Freedom is advancing well that its network is not as fast and reliable networks. Shaw spends billions trying to upgrade its network, and has introduced LTE into its larger markets.
It also has an advantage in the upcoming auction for the 600 MHz spectrum, the frequency needed to power the next generation 5G.
The government plans to set aside 43 percent of the spectrum for smaller players with less than 10 percent market share, much to the detriment of licensees who claim that major cable companies like Shaw and Quebecor But Freedom says its new plans prove government intervention is needed to improve competition.
"Our entry-level plans demonstrate that federal government programs have competitive policies in place," McAleese said.
• Email: [email protected] | Twitter: theemilyjackson
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