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Canada – Mobilicity, is confronting larger rival, Rogers Wireless, accusing that company of unfair competitive practices

[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



2 Responses to “Canada – Mobilicity, is confronting larger rival, Rogers Wireless, accusing that company of unfair competitive practices”

  • Peter Ho says:

    Mobilicity launched with a bang but is going down with a whimper. Most of their corporate stores are closing down. Their flagship store in the Heartland town Center in Mississauga, Markham, Scarborough and Downtown are all shutting down. What happened?

    Can anyone shed light on this? Why are they closing their flagship corporate stores if they are not going bankrupt?

  • Gary Jennings says:

    There are a total of 6 stores that have been shut down. I just saw another one in Brampton which is shutting down next week. If you don’t believe me go and see it for yourself. The proof is in the pudding!

    The one on Queens and Brittania in Mississauga was the first to go.
    Wind may be, just may be, able to stand up to Chatr but Mobilicity is history! They will be better off suing Rogers and living off any money they get from them. Don’t burn your money on these jokers!