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Mobilicity takes Rogers to task over Chatr, alleges it's using a 'flanker brand'
At a glance, it seems like upstart Canadian value carrier Mobilicity has a fairly cut-and-dried case against Rogers here, alleging in a complaint to the government's Competition Bureau that the big guy is in direct violation of Section 78 of the country's Competition Act that prevents established companies from creating so-called "flanker brands" offering lower prices to kill off new players. In other words, it's saying Rogers' new Chatr sub-brand only exists to make life difficult for the likes of Mobilcity, WIND Mobile, and Public Mobile -- and considering the uncanny timing of Chatr's creation, Rogers is probably going to have a tough time explaining that one away. Thing is, various sources inside the regulatory bodies at play are apparently telling The Globe and Mail that the complaint could literally take years to make its way through the system -- a typical bureaucratic nightmare -- so even if Rogers is in the wrong here, it might not have any material effect on Mobilicity's short-term prospects. For that, it'll take good, old-fashioned subscriber conquests and efficient management, we suppose. Update: Rogers has just reached out and provided a statement from chief marketing officer John Boyton; the gist? The company hasn't heard from any government agency, Competition Bureau or otherwise: "We have not been notified by any government agencies, including the Competition Bureau, of any complaints filed by Mobilicity. Other new entrants and competitors are welcoming the competition. They, like us, believe it's good for customers. Our motive is simple, to offer customers choice and serve a growing segment that is looking for unlimited talk and text on a network they can trust. We've adhered to regulations and pro-actively reached out to the Competition Bureau. We are committed to chatr and look forward to it being a success."
Rogers' budget-friendly chatr brand launches in Canada
We knew it was coming, and now it's official: Rogers Wireless has today launched its entry-level "chatr" wireless brand for Canadians everywhere -- and by "everywhere," we mean Toronto, Vancouver, Calgary, Edmonton, and Ottawa (Montreal is coming soon, as is possibly elsewhere). Two plans are available: $45 monthly for unlimited talk-and-text and $35 for unlimited talk and 50 free texts. As of now, the official website's showing four devices to choose from, available at full price only (no subsidizing). On the low end, relatively speaking, there's the Nokia 1661 candybar for $60, followed by the LG GB125R flip for $75, the Nokia 2680 portrait QWERTY slider for $95, and Samsung's Gravity landscape QWERTY slider sitting at the top of the chain for $130. Rogers -- whose name appears nowhere in Chatr's branding so far -- expects "hundreds" of chatr kiosks to be rolled out at Future Shops, Best Buys, Costcos, and other retail outlets. The brand will compete with other budget-conscious options from the likes of Wind Mobile and Mobilicity, but this one's got the advantage of Rogers' more established, wider-reaching network. According to The Globe and Mail and CBC News, Wind will be offering a whopping $150 credit for those who switch to its network from Rogers / chatr. Mobilicity's chairman John Bitove has a different strategy altogether, threatening to complain to the Competition Bureau that Rogers' possible goal here is to drive other discount phone brands out of business before dissolving chatr and leaving the market with only a higher-priced segment. And if you were wondering where Telus and Bell Mobility stand, well, both companies are reportedly expected to follow suit with entry-level brands of their own. Data plan-averse Canadians should have quite the selection from which to choose.
Rogers announces plans for budget-minded 'Chatr' wireless brand
Well, it looks like Canadians will soon have yet another discount wireless brand to consider -- Rogers has just officially announced plans to launch a new budget-minded "Chatr" brand to compete with the likes of Wind, Mobilicity and Public Mobile. Yes, that's the same Rogers that already has the Fido discount brand, but it says that the "launch of a third brand mirrors many other industries like the hospitality and retail sectors and is designed to offer Canadians more choice." The official announcement follows some rumors and leaks that have been circulating as of late, which suggested that Chatr would initially launch in Toronto, Ottawa, Calgary, Edmonton and Vancouver on July 5th, although those details still haven't yet been confirmed by Rogers.
