[teleclick] Canadian wireless startup, Mobilicity, has made good on its threat to hit larger rival, Rogers Wireless, with a Competition Bureau complaint.
The complaint is targeted at Rogers’ new discount cellular brand, Chatr, which according to Mobilicity, is “designed to solely go after the new [carriers] and drive them out of the market.”
Chatr’s unlimited text and unlimited talk-and-text plans are priced at $35/month and $45/month, respectively, and closely resemble the flat-rate offerings of Canada’s latest round of wireless startups, a group that includes Wind Mobile, Public Mobile, and Mobilicity.
Section 78 of Canada’s Competition Act forbids established companies from creating “fighting brands” designed purely to run new competitors out of the market. On the other hand, spectrum was set aside for the new market entrants so as to encourage competition and put downward pressure on wireless prices, and Rogers’ new discount brand is clearly a part of that process.
Mobilicity’s Chief Operating Officer, Stewart Lyons, said that his company will not make any further statements on the matter “other than to say we are strong proponents of a healthy, fair and sustainable competitive environment in Canada’s wireless sector, and we are confident that the Competition Bureau and federal government will ensure this remains the case.”
Mobilicity Files Competition Bureau Complaint Against Rogers/Chatr
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