Canada’s new wireless provider is growing

Wind Mobile, Canada’s new wireless provider which launched late last year is growing and now looking for an estimated $700 million in financing to quickly grow into more cities across Canada. The cell phone industry in Canada has been essentially been an oligopoly. That is, it has been controlled by by three large companies (Rogers, Bell and Telus) and government regulations made it virtually impossible for new companies to enter the market. For consumers, this has been awful. These three companies are some of the most hated across all industries and companies in North America that operate in Canada. Their terrible customer service was only outdone by the exorbitantly high monthly prices, including several bogus set fees. However, the federal government finally decided to stop the bleeding and auction off wireless spectrum to new companies. Wind Mobile is the first of these new entrants to actually launch their business.

Although I have not personally switched to their services or inquired in person to see how good their offering really is (I am under contract for quite some time longer), from the looks of their plans on their site: it appears that they see the opportunity that the three giants have created. That is for a company to actually offer a decent rate and not gouge us for everything, including ridiculous fees that feed right into the companies’ bottom lines. Apparently, people have started to take up on these new offerings as Wind Mobile, owned by Globalive Communications Corp., has said that they now have 10,000 customers and are seeing interest from various investors as they look to expand nationally.

For cell phone consumers, which just about every Canadian of a certain age is, this is very good news. There are going to be about 3 additional new companies that plan to launch later this year and I would assume that not all will survive, or they may be eaten up by one of the big players (if the government and CRTC allows them), but regardless, there was an incredibly serious and long overdue need in the wireless industry in Canada for some real competition to enter the marketplace and force the three Goliaths’ to be more reasonable with their offerings and make them feel like they actually need to work to acquire and retain customers.