Brenton Chin's Blog

There are many things that I find WRONG with Canadian Cellphone Carriers. Recently I have been helping my friends search for new cellphones plans, only to find out that cellphone plans are 1) expensively priced and 2) don’t give enough “bang for your buck”

However, during my search, I ran into a new Canadian carrier called  “Mobilicity” (their logo below)

When I saw their plans, my eyeballs nearly dropped to the floor. Their plans are unlike ANY carriers! They’re cheapest plan is $25 per month, (which they call their “Unlimited Plan”). Subscribers get UNLIMITED calling, UNLIMITED texting & picture messaging, and Caller ID… all of that on NO CONTRACT! For $10 extra per month, one can receive UNLIMITED data.. (other carriers charge 30$ per month for only 1 gigabyte!!) This is unlike anything I, along with any other Canadians have seen!

Now, I had a conversation with a Mobilicity representative who explained to me why their prices are so unbelievably cheap. There are two parts to it. The first part, is that Mobilicity is “eliminating the middle man”, in that they have erected their own cell phone towers, instead of paying Rogers, Telus or Bell for THEIR cell phone towers (Wind Mobile, Virgin Mobile do this!). Secondly, Mobilicity has eliminated all the corporate structuring that other Canadian cell phone companies have: Mobilicity runs independently, which eliminates all costs associated with payroll at the corporate level.

This may seem ingenius, but this is commonplace in other countries, where cell phones plans are just as cheap as Mobilicity’s: (take a look at the graph above!)

Lets just hope that Mobilicity isn’t bought by the existing Canadian companies (like how old Fido was) .. which would be a step-forward for monopoly-like prices, and a step-back for Canadian consumers…!