Bell, Shaw, Rogers, Telus and Wind will either fight or deal

For those who do not remember, Rogers and Shaw once competed all across Canada but formed an alliance sometime in the year 2000 allowing Rogers to take over the east, while Shaw took over the west.  Thus eliminating competition in the cable TV industry.  Rogers and Shaw’s treaty ends as of October 2009  at http://www.financialpost.com/news-sectors/Cable+rivals+drop+gloves/2165527/story.html

Telus  (Alberta) and BCTel (British Columbia) of the West, who offered telephone and later Internet and mobile phone services,  joined forces to compete with Bell Canada of the East for mobile phone and Internet customers.

Rogers and Shaw started out with TV while Telus and BCTel started out with telephones.  With the  Internet, both Shaw and Telus overlapped by offering Internet services.  Shaw then offered telephone that enabled Shaw to bundle all three into a competitive package deal.  With the creation of Telus Optik TV, Telus has all the tools to compete with Shaw.

Strange as it may seem, many companies either start in the eastern or western part of Canada.

For those who know Canada, this is not strange at all.

BC and Alberta, in the West, are the most populated provinces with the highest concentration of people located in the Greater Vancouver area of BC and in both Edmonton and Calgary in Alberta.

As for the East, Montreal in Quebec and Toronto in Ontario are the two largest cities.

The rest of Canada’s cities may find that they will have to pay higher prices due from the fact that their population is so small, one or two companies will offer them services if any.

I have witnessed Telus and Shaw of the West fight tooth and nail for customers.  Giving too good to be true offers through the mail.  Seeing waves of people, enticed with incredible offers, flock to one then the other then back again, I was amazed.

Bell, currently, is unable to compete fully with Telus and/or Shaw in the West which currently offers telephone, Internet, and TV in a complete package.  Bell is missing a home phone AKA land line.  This may explain why I have not received any offers from Bell.  As for the East, I am pretty sure waves of people flock back and forth between Bell and Shaw in Ontario and between Bell and Videotron in Quebec.

Wind mobile will survive since it has a backer with deep pockets.  It will be interesting to see if Wind mobile will join the fight for customers by offering their own Internet, TV and telephone in a complete package.  This is how Telus, Shaw, Bell, Rogers, and Videotron offer better discounts.

Although, I find it strange that they do not offer mobile phone discounts with the complete package.

In any case, it seems that deals are made, but eventually the treaty ends.  Therefore, there will continue to be a war between the service providers for customers for a long time yet.  I do not think there is enough money in any one province to satisfy their shareholders.  After all, shareholders want to see growth not stagnation.

I cringe at the thought of seeing offers, seeing door-to-door salespeople and receiving phone calls from Telus, Bell, Shaw, Rogers, Wind and Videotron offering too good to be true packages.  I thought spammers are bad.  I think these big guys will be worse.

What may the promotional flyers look like when this happens?

Company XYZ

  • $10 home phone
  • $10 Internet
  • $10 TV
  • $10 unlimited everything within Canada plan (1 free mobile phone included)

Although, offering me the moon cannot be that bad.

In any case we must also view the other end of the spectrum.

With the threat of a dwindling subscriber base, it maybe possible that Telus and Bell will merge into one company.  Shaw and Rogers will also merge into a single company.

Telus and Bell merger on an August 2009 article at http://www.cbc.ca/money/story/2009/08/12/bell-telus-merger.html

Rogers and Shaw merger on a July 2007 article at http://www.reuters.com/article/idUSN2536269020070725

Telus and Bell have worked together before.  Therefore, they do have a working relationship.  Therefore, a merger would not surprise me.

As for Wind, buying PureMobile and Mobilicity is in the cards.

Winds view of the big 3 and the smaller companies, mobilicity and pure mobile, at http://www.mobilemag.com/2010/09/01/wind-mobile-calls-big-three-a-joke-will-buy-mobilicity-and-public-mobile/

It seems that Wind is willing to do what countless other have tried before such as 0% financing on a new automobile.  Offer deals that will make it bleed, but will leave the competitors dying on the floor.  Therefore, I would not be surprised if the remaining companies merge into one.

Wind, being a private company and having an owner with deep pockets, can afford some losses.  Furthermore, there maybe little pressure from shareholders to make a profit.  This enables Wind to take risks without the pressure from outside sources.

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