In The News

[pjw918]

Rogers Q4 2011 results - mobilesyrup, Feb 21

• postpaid subscriber base 7,574,000 (not a number we want to compare to Mobi's, if we could)
• net postpaid subscriber increase of 42,000 (Mobi's net 63,000 figure is 50% higher!)
• ARPU fell 4% ($2.49) to $58.82

For more detail:
Globe and Mail, Feb 22
“In summary this was a truly poor quarter at Rogers Wireless,” wrote Dvai Ghose, an analyst with Canaccord Genuity, in a note to clients...
Its postpaid wireless net subscriber additions totaled 42,000 for the quarter, but that was down 7 per cent compared to the same period in 2010...

CBC, Feb 22
--
edited to focus on postpaid subscriber numbers, prepaid would be accounted for by the sub-brands, and the net 42,000 postpaid subscribers is what's being reported in the mainstream media

[Dave114]

Rogers Q4 2011 results
On the last, with Mobi's reported Q4 ARPU of just over $30, it can objectively be said the average user moving to Mobilicity from Rogers will cut their monthly cell phone bill virtually in half. But we knew that.

(actually, it's probably more that half, as the typical user latching on to Mobilicity's value would be more data-centric than average, with a correspondingly higher Rogers monthly bill)

I just wonder how many Mobi users were "more data-centric than average" prior to signing up. I moved from a dataless prepaid phone to Mobi's BTS (speakout 7/11... with a $100/year being more than enough airtime for me after years on Bell postpaid). I'm probably the extreme case, but I suspect that cheap data got more people using data than would otherwise.

[pjw918]

I just wonder how many Mobi users were "more data-centric than average" prior to signing up. I moved from a dataless prepaid phone to Mobi's BTS (speakout 7/11... with a $100/year being more than enough airtime for me after years on Bell postpaid). I'm probably the extreme case, but I suspect that cheap data got more people using data than would otherwise.

Dave, I decided editorial comment of mine (mostly) should be in a separate post from the news item report and removed those two paragraphs in my last edit, although I think my supposition was sound. At the Hofolicity Toronto meet, Anthony Booth emphasized that the unlimited data was an important "equity driver", important enough in bringing in new data hungry customers that Mobilicity is determined to continue offering data without caps or volume limits as a differentiator. Yes with the cost difference more people would be using data than otherwise, it's still expensive on the Big 3.

[pjw918]

$600 Bill for local calls - CTV Consumer Alert, Mar 1
(video, best viewed on PC)

An 18-year-old Durham Region teen got a shock after he received a $600 cell phone bill for local calls

On an unlimited plan, with Wind.

[pjw918]

T-Mobile exec: Key to fixing industry is removing device subsidies - GeekWire, March 8

T-Mobile Chief Marketing Officer Cole Brodman said that the way carriers subsidize devices is hurting the industry.

“It actually distorts what devices actually cost and it causes OEMs, carriers — everybody to compete on different playing fields,” said Brodman, speaking at the GeekWire Summit in Seattle...

"It becomes difficult because consumers vote with their pocketbooks, and they will almost always pick a low device price oftentimes over a low rate plan price or a bundled rate plan price..."

[will888]

Globe and Mail, Feb 20

The privately held company, which operates as Wind Mobile, is laying the groundwork to position itself as a “quad play” that would offer service bundles with wireless, home phone, high-speed Internet and, eventually, a suite of “over-the-top” programming for mobile devices.

Although it will likely be a year before the first Wind-branded bundles are available to consumers, an initial rollout would target Vancouver, Calgary and Edmonton, along with Ontario markets including Hamilton, Oakville, Toronto, Oshawa and Ottawa...

Such plans, however, hinge on Globalive’s ability to purchase sufficient 700 MHz spectrum in the next federal government auction to build a 4G-LTE (fourth-generation long-term evolution) network that would offer the required mobile speeds...

n the interim, Globalive is taking other steps to execute on its bundle strategy. Earlier this month, it received tentative approval from the Canadian Radio-television and Telecommunications Commission to register itself as a proposed Competitive Local Exchange Carrier (CLEC)...

To be honest, wind mobile execs are dumber than fence posts to play this card so early. For those of us that have experienced the early years of cell service in canada, why would I relive that again without the promise of better value. If they want to charge robellus rates now, I would choose rogers every time. Why do I want a cell plan with 100 megs of data on a swiss cheese network when these types of plans are plenty with robellus.

Sent from my Nexus S using HowardForums

[will888]

I just wonder how many Mobi users were "more data-centric than average" prior to signing up. I moved from a dataless prepaid phone to Mobi's BTS (speakout 7/11... with a $100/year being more than enough airtime for me after years on Bell postpaid). I'm probably the extreme case, but I suspect that cheap data got more people using data than would otherwise.

I am such a customer. I refuse to pay $25 for 100 megs of data even if they subsidize my hardware to $0 every three years and provide superior coverage. It is still bad value overall. Data its king when it comes to smart phones. Without data a smart phone is useless.

Sent from my Nexus S using HowardForums

[will888]

T-Mobile exec: Key to fixing industry is removing device subsidies - GeekWire, March 8

T-Mobile Chief Marketing Officer Cole Brodman said that the way carriers subsidize devices is hurting the industry.

“It actually distorts what devices actually cost and it causes OEMs, carriers — everybody to compete on different playing fields,” said Brodman, speaking at the GeekWire Summit in Seattle...

"It becomes difficult because consumers vote with their pocketbooks, and they will almost always pick a low device price oftentimes over a low rate plan price or a bundled rate plan price..."

The immediate gratification of walking out of the store with a $0 phone is like an addictive drug. Unfortunately these shops are like the money mart of banks.

Sent from my Nexus S using HowardForums

[pjw918]

Ha! "like the money mart of banks" Perfect.

[0defaced]

Mobi will be long gone before the end of the auction.

how exactly do you figure?

[gun26]

I think Brodman is right about subsidised phones hurting the industry, but they're not going to go away any time soon.

I used to hope that the advent of the new carriers would start a mass consumer movement away from subsidized phones and three-year contracts, but lately I'm giving up on ever seeing this happen. Most consumers are incapable of doing the simple arithmetic of taking Robelus-level monthly payments and comparing them to Mobi/Wind-level payments plus the up-front cost of a phone, and reaching the obvious conclusion.

[xtachx]

I think Brodman is right about subsidised phones hurting the industry, but they're not going to go away any time soon.

I used to hope that the advent of the new carriers would start a mass consumer movement away from subsidized phones and three-year contracts, but lately I'm giving up on ever seeing this happen. Most consumers are incapable of doing the simple arithmetic of taking Robelus-level monthly payments and comparing them to Mobi/Wind-level payments plus the up-front cost of a phone, and reaching the obvious conclusion.

As I said before, people in North America love the word "free". If you advertise "free phone*" *with a license to rob you every night, people will read the "free phone" part and not the rest. It reminds me of subprime lending. Every joe who cant afford a phone signs a contract and gets even poorer. The carriers wont bl;eed money, they are smart enough to overcharge people and make a profit.

When people love to be fleeced, you cant force them to not get fleeced.

[not yet]

I say - give the customer what they want.

A $500 phone is $14/mo. over 3 years plus interest.

BTS plus free $500 phone would be $39/mo. for a 3 year contract. Easily putting any other provider to shame. Beat them at their own game.

If Mobi would get a bank to finance the phone if the user qualifies they would have a customer for 3 years.

If they default - the bank will go after the customer for the remainder of the cost of the phone and interest.

Free phone $39/mo (plus interest on the loan).
Bring your own phone $25/mo no contract.
Take your pick.

When your customers want a contract and "free" phone - telling them there is no contract is not a selling point.

Shaw just started doing the same thing. They advertise no contract. But if you want a free PVR - you pay monthly for 3 years and then get to keep it. If you cancel the service - you still are on the hook for the PVR which only works on Shaw's service.

With Telus - you get a free PVr - but only on a contract. You never own it and if it breaks - they give you a new one. Suddenly a contract is the way to go.

[cricketfan]

Free phone $39/mo (plus interest on the loan).
Bring your own phone $25/mo no contract.
Take your pick.

Thats a FAIL right there. A company when orders a shipment of phone, want every customer of his to take atleast one. By giving incentive to bring their own phones as oppose to buying companies bloated priced phones, they are shooting their own foot.

[pjw918]

WIND Mobile had 403,000 subscribers at the end of 2011 - mobilesyrup, March 13

Orascom Q4 Earnings Report - pdf

“Although WIND had positive prepaid net additions in Q4 2011, WIND elected not to follow unreasonably aggressive pricing waves adopted by low end market entrants proven to have no financial feasibility and in fact unsustainable in the mid-term for the high dormancy and churn rates coupled by significantly lower ARPU and negative lifetime value of such customers. WIND’s commitment to the pre-paid market in Canada continued, but reflected a conscious and disciplined mandate not to match competition purely on lower price”
yet..
"In Canada, WIND Mobile experienced a 13% decline in ARPU YoY, while showing stability compared to the previous quarter."

(lotso spin!)
(and Mobi's ARPU and net adds for Q4..?)