Would you be happier on a Mobile Virtual Operator’s network?

Would you be happier on a Mobile Virtual Operator’s network?

Given I am currently on Rogers, and the sort of service I would pay extra for (mobile data) is just a rip off, I’m looking at other options, and scaling back my ambitions. My contract with Rogers is up in about 10 days (and what’s with a 3 year commitment? In the UK 1 year is pretty standard), and my friends (some of whom a real geeks) have been recommending prepaid.

“Customer satisfaction is more important than ever in the wireless industry [with] number portability[...], removing one of the main obstacles customers face when switching providers.” http://www.jdpower.com/corporate/news/releases/pdf/2006256.pdf

And its not just my friends proclaiming prepaid, industry experts JD Powers said:

Although prepaid service doesn’t have the same penetration rates as contract service, it is significantly less expensive on a monthly basis. The average monthly fee paid by contract customers is $74, compared with $29 for prepaid customers. Forty two percent of prepaid customers had previously used a contract service.

J.D. Power and Associates Canadian Wireless Customer Satisfaction Study Gives Top Marks to Virgin Mobile in all prepaid categories

(TORONTO, ON) November 22, 2006 – For the second year in a row, a major study on wireless customer satisfaction has revealed that Virgin Mobile has the most satisfied prepaid customers in Canada. The study conducted by J.D. Power and Associates, shows Virgin Mobile has outranked every other network and topped the competition in all five categories measuring: (1) Customer service (2) Billings (ease of ongoing use, i.e., top-up) (3) Cost of service (4) Service plan options (5) Call quality.

http://www.jdpower.com/corporate/news/releases/pressrelease.asp?ID=2006256

Prepaid by itself is not enough, I need an MVNO!

MNVO’s [..] treat incumbent infrastructure such as radio equipment as a commodity, while the MVNO offers its own advanced and differentiated services based on exploitation of their own [..] infrastructure. The goal of offering value-added services is to differentiate versus the incumbent mobile operator, allowing for customer acquisition and preventing the MVNO from needing to compete on the basis of price alone.

MVNO’s have full control over the SIM card, branding, marketing, billing, and customer care operations. While sometimes offering operational support systems (OSS) and business support systems (BSS) to support the MVNO, the incumbent mobile operators most keep their own OSS/BSS processes and procedures separate and distinct from those of the MVNO.

http://www.telecomspace.com/latesttrends-mvno.html

Canada’s Operators, including MVNOs

Bell and Rogers, bottom rated for satisfaction, of course have the most customers and so don’t compete on price. Or anything, really.

Company	Overview
Aliant Mobility	Service in four maritime provinces.
Bell Mobility	#2 national carrier. CDMA network. Teamed with Virgin Mobile to serve youth market. Owned by Bell Canada (BCE). Coverage maps.
Fido (Microcell)	GSM network. Billing by the second. Microcell resellers: Cityfone, SimPro and KORE wireless. Owned by Rogers Communications.
Mike (Telus Mobility)	Walkie-talkie (2-way radio), digital cellphone, pager and wireless data service. Roaming agreement with Nextel for use in US uses iDEN network.
MTS Mobility	Service in Manitoba.
PC Mobile	MVNO. Prepaid calling plans. President’s Choice owned by Loblaws Inc.
Primus Canada Wireless	MVNO. Owned by Primus Telecommunications, Inc. Coverage map.
Rogers Wireless	#1 national carrier. AMPS, TDMA and GSM networks cover 93% of Canada’s population (including Microcell Fido). Acquired Microcell in 2004. Acquired Cantel in 1999. Owned by Rogers Communications. Coverage maps for GSM, TDMA, BlackBerry and paging services.
SaskTel Mobility	Service in Saskatchewan.
7-Eleven Speak Out Wireless Services	MVNO uses Fido network. Prepaid plans. Owned by 7-Eleven, Inc.
Telus Mobility	#3 national carrier. CDMA network. Purchased Clearnet in 2000. Owned by Telus (merger of Telus and BCTel). Coverage maps.
Virgin Mobile Canada	Launched prepaid service in March 2005. Service in four provinces. MVNO uses Bell Mobility’s CDMA network. Owned by U.K.-based Virgin Mobile. Coverage maps.

http://www.mobilook.com/Carriers.asp

Why do the infrastructure owners allow MVNOs?

The MVNO approach allows for these niche markets to be developed which allows MVNOs to offer wireless products customized to the end-user lifestyles, thus maximizing this growing demand for wireless data services. MVNOs will benefit by their vast expertise which allows them to deliver lifestyle products that are in demand. Wireless service providers will profit from the additional revenues and the utilization of their unused network capacity. These arrangements also do not pose any competitive threats such as the MVNOs cannibalizing the carrier market.

http://www.marketresearch.com/product/display.asp?productid=1188657&g=1

The risks are high, but so are the potential rewards, according to the white paper. While countries with comparable purchasing power such as Italy, the UK and Germany have reached 80-105% mobile penetration, the USA market is only at 65%. In addition, U.S. wireless carriers have yet to embrace personalization and customers are hungry for compelling content customized to meet their needs and match their interests. DiamondCluster estimates that there will be 30 million U.S. MVNO subscribers by 2010.

http://www.cellular-news.com/story/13622.php

Regulations, regulations

There are arguments from both sides as to whether the MVNO model will bring otherwise unreachable revenue or unwelcome competition to the MNOs. For instance, the GSM Association, [...][was] keen to see legislation that helps companies provide and take advantage of the financial potential of MVNOs, but it is equally keen that network operators should not be legally required to open their networks to anyone wanting access. At the same time, some UMTS licence-holders, particularly in Germany, are fighting the regulatory authorities for the right to share their spectrum.

http://www.e-principles.com/MVNO.htm (2001)

If you want more insight on Canada’s MVNOs, http://www.howardforums.com/forumdisplay.php?f=326 has a forum dedicated to them, for example:

Or maybe VOIP Wifi?

Thing is, I use my phone quite a lot. Maybe now is the time to go for a wifi phone? Rather than spending several hundred dollars per month on calls I could replace my aging treo with one of those new Nokia N91s, but some report that they are still shaky, and other friends say the Nokia E-series rocks. VOIP wifi is coming. I can almost taste it.

In sum, I find the lack of competitiveness in the Canadian Telco scene just obscene. The entry of wifi should really disrupt!

Oh, wait a minute. Bell & Rogers co-own Inukshuk. What is with regulation in this country?