Wireless Party!
If you're looking for the right word to describe how Canadian wireless CEOs are feeling these days, it's chuffed..
With pesky Microcell Telecommunications taken out of its misery by Rogers, the Big Three (Rogers, Telus and Bell Mobility) are enjoying a stable pricing environment, strong subscriber growth and more revenue from data services. As Rogers Wireless CEO Nadir Mohamed said today at an RBC Capital Markets conference in Banff, “it's a great time to be in the wireless business”.
If you figure penetration in Canada will likely settle in eventually at 70%, there are probably four or five years of really good times ahead for wireless carriers. With everyone focused on ARPU and profitable growth, you can expect there will likely be across-the-board approval of price increases. In fact, we're alreadying seeing indications pricing is on the rise. Telus, for example, is thinking about moving the start of its free weekend calling plan to 9 p.m. on Friday night from 8 p.m. for new customers. Anyone who wants the start time to be 6 p.m. will pay a $7 or $8 monthly fee. It's a small change but it illustrates how carriers are always thinking of any way to boost ARPU.
Unless Virgin or the introduction of local number portability changes the competitive dynamic, you can expect to see your wireless bill go up, up and away.
