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The landscape of Canadian wireless providers is slowly but surely changing with the arrival of a few new competitors. The big three -- Rogers, Bell, and Telus -- now have to face the likes of Wind Mobile, Mobilicity, and Public Mobile. To address these changes, Bell is shifting its Solo Mobile brand focus a little further down market and Rogers has already launched the Chatr brand as a "cheap" unlimited alternative.
So, what is Telus doing? Are they going to shift Koodo Mobile a little further down the scale? Are they going to create a new sub-brand like how Rogers did. No. They don't want to go any cheaper. They're quite "satisfied right now with Telus's status quo," according to company CEO Darren Entwhistle. They're not going to be "expeditiously reactive" like the guys at Bell.
Telus isn't afraid to spend money. They sponsor ski festivals and can get quite aggressive with some of their marketing tactics, but they no longer want to compete on price... even though that's exactly what they did when they launched Koodo and did away with the System Access Fee. Remember the waves of change that followed that move? Now nobody charges the SAF (though Rogers has its GRRF instead).
Is this steadfastness the best move on the part of Telus? By refusing to compete on price, are they leaving money on the table or are they saving themselves the headache of trying to muster a couple bucks from the least "spendy" of consumers? Then again, Telus is the first to offer a $49 iPhone, albeit the older 8GB 3GS model. They'll make that money back with a three-year contract, I'm sure.
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