Rogers’ Monopoly Comes to an End – Bell and Telus To Sell iPhones in Canada

News | Saturday October 3 2009 3:49 AM | Comments (0) Tags: , , , , , , ,

Bell has officially confirmed the deal and plan to start selling the iPhone from November. Telus haven’t confirmed, but reports say that the deal is already through and is likely to be announced very soon. Rogers Communications has hitherto remained the leader in GSM based services in Canada. The 3G network of Bell and Telus were incompatible with the iPhone which had given Rogers the competitive edge. The sale of iPhones is said to have helped Rogers Wireless record a 7% growth in the past year despite the glooms of recession. Rogers’ iPhone customers are observed to be high spenders and contribute 1.5 times more revenue per user than the average Rogers’ customers.
Bell and Telus have been historic rivals. However, the pressure from the markets forced the two companies to engage in a partnership for the first time last year when they announced the joint construction of a High Speed Packet Access Network or HSPA that cost close to $1 billion. With the completion of the HSPA network, Bell and Telus can now challenge the leadership of Rogers in the GSM segment. Some of the most popular mobile phones including the
and the Nokia N-Series are designed for this standard which will open the two companies to these high growth markets.
Both Bell and Telus have high stakes in the new partnership. Having missed the iPhone opportunity in its first year, Bell only added 45,000 new customers last quarter compared to Rogers’ 142,000 and Telus’ 111,000. Telus on the other hand, has suffered in the average revenue per user which declined by 7% in the previous quarter. The addition of iPhone to their basket will surely revive the customer growth and revenues for these two companies. As always, the customers have one more reason to rejoice.
If you’re reading this in Canada, let us know if you plan to switch to Bell or Telus when they start selling the iPhone .

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