[teleclick] Canadian wireless startup, Mobilicity, is confronting larger rival, Rogers Wireless, accusing that company of unfair competitive practices.
Mobilicity’s anger is directed at Rogers’ forthcoming discount brand, Chatr, which Mobilicity Chairman, John Bitove, describes as ” a phone service basically trying to duplicate to ours, only in the markets we’re launching.”
Like Mobilicity and other new market entrants such as Wind Mobile, Chatr will offer low-cost devices off contract, combined with competitively priced unlimited calling plans.
Bitove accuses Rogers of “trying to create a flanker brand that they can subsidize through their existing network and a lot of their other infrastructure.” He says the larger carrier is breaching a section of Canada’s Competition Act prohibiting the “use of fighting brands selectively on a temporary basis to discipline or eliminate a competitor.”
Rogers quickly responded to the allegations with executive vice president, John Boynton, stating that “what all these [new carriers] said was that all this competition would be good for the consumer.” Mobilicity’s complaint, however, “seems to be all about this company and not about customers.”
Mobilicity Accuses Rogers Wireless of Violating Competition Act