Canadian wireless companies are looking to salvage some of their success with the departure of their CEOs. According to a prominent analyst in the industry, these new wireless companies are fighting for survival in the midst of three major players.
Mobilicity, a major wireless name, greeted their chief operating officer, Stewart Lyons to replace CEO Dave Dobbin and the chairman John Bitove to take the Executive Chairman role for a more hands-on role for the company’s regular activities. A similar change took place, barely six months back with Globalive Wireless Management Corp’s Wind Mobile greeting the company chairman Anthony Lacavera to replace the position left by telecom veteran Ken Campbell.
Analyst Dvai Ghose, seemed to suggest a lukewarm outlook in his published research note, towards this shuffling in management in the two companies as an inspiration for the Canadian government to increase competition within the sector. Telecom majors like Rogers Communications Inc., BCE Inc., and Telus Corp. continue to have a stronghold in the industry with almost 95% market share of wireless subscribers.
According to the analyst Mr. Ghose, believes that wireless subscribers had no choice but to give the full price for the devices despite the subsidies in Canada. Business plans of the companies ensured that these subscribers stayed with the company with a two-three year contract that would be expensive to break.
Mr. Ghose also re-iterates that the ‘new entrant model’ which is independent is rapidly failing. He believes that customers want to buy unsubsidized devices despite paying more for no contracts and the cheap and affordable unlimited plans for voice and data.
Canadians have always benefited from plans by new entrants like Mobilicity, Wind and Public Mobile, as they instigated competition amongst existent players with cheaper and affordable prices. Ontario and Quebec residents have benefited from these plans. According to Brahm Eiley from Convergence Consulting Group Ltd., new entrants have outdone players like Bell, Rogers and Telus by reducing prices by 60 %.
Globalive’s Mr. Lacavera stated in an email to The Globe, that there would be greater competition from 2012 like in 2008, when licenses for wireless operation would be auctioned by the government. This would enable Globalive to increase competition with Bell. He also stated that, Globalive intended to position itself as a new national carrier in Canada. Government policies currently permit the company in the upcoming auction, the acquisition of more spectrum in rural and urban cities, giving all Canadians, cost-effective and affordable wireless services.
Mr. Ghose gives a futuristic turn to the events, and believes that incumbents will benefit from the regulations in the industry. Wireless licenses given to a company will be limited suggesting a ‘cap’ to the amount of spectrum a company can acquire and new incumbents will receive a spectrum set-aside. He suggested that foreign wireless giants and companies like Wind could have benefited with the loosening of the ownership restrictions by foreign players that remain strict under the administration of the majority Conservative government.
Mr. Ghose still believes that independent new entrants will face severe problems along with companies like Industry Canada intending to foster competition. Although, Mr. Bitove of Mobilicity takes an optimistic view on the situation and believes that Mobilicity is comfortable with its performance and ready for changes.


