Rogers Goes Head-to-Head with New Carriers via Chatr Service

Rogers is taking the gloves off to fight head-to-head with new wireless carriers by launching a third wireless carrier brand for basic talk and text service. Called chatr, it will offer unlimited talk and text, but no data, to arguably the same customer segment Public Mobile, WIND Mobile, and Mobilicity are after.

With the absence of data, it appears Rogers is aiming its big guns most precisely at Public Mobile; a new carrier with various pockets of spectrum throughout Canada, and services already launched in Toronto and Montreal. Like chatr, Public Mobile only offers talk and text service as a simple, unlimited package for $40/mo. The carrier has its own standalone stores, but just recently inked a deal with Gateway Newsstands, putting its brand in major urban spots like subway stations and downtown buildings.

If Rogers were to offer services at the same price, the carrier has the obvious advantage of a proven reliable and widespread network across the country. For Public, however, the new name and brand might spell "fresh new outlook" to customers who have had bad experiences in the past, or who are looking for an alternative to the "Big Three" carriers, which include Rogers along with Bell and Telus.
Note, however, that along with a selection of plans that include data as well, WIND Mobile and Mobilicity both also offer unlimited talk and text plans without data access for customers who so desire it. This puts them right in the line of Rogers' fire as well.

"We've been watching this niche but growing category closely, and it's clear that some Canadians want to use their handsets for voice and text only, but want a network they can trust," explains John Boynton, Executive Vice President and Chief Marketing Officer for Rogers Communications.

Like Public, Mobilicity, and WIND, the chatr service will not require contracts. More details on pricing and handset availability will be made available later this summer when the service launches; although it's safe to assume that it will fall in line with the new competition.

Earlier this year, Rogers announced a retail partnership with Shoppers Drug Mart, although it did not disclose specifics on what products would be sold through the retailer. It's safe to assume that the chatr brand will likely have a place there; the synergies seem obvious.

"The launch of a third brand mirrors many other industries like the hospitality and retail sectors," Boyntons adds, "and is designed to offer Canadians more choice."

A new brand name owned by an existing wireless carrier is hardly considered adding more "choice"; remember, Fido is also a Rogers-owned brand, but many still view it as being under the Rogers umbrella. Ditto with Virgin Mobile (Bell) and Koodo (Telus). The only truly new "choices" being offered hail from Mobilicity, Public, and WIND.

However, while these three carriers work to build out their networks, which inevitably takes time, it looks like incumbent carriers like Rogers are swooping in with enticing offers that could sway some.

I'm still not sold on the longevity of a wireless business plan focused on just talk and text. While there's undoubtedly a large segment of the market who just want these functions, there's an even more quickly growing segment that recognizes the benefits of having at least some form of data on the device, whether it's for e-mail, Web surfing, social networking, or apps. However, considering new gadgets like tablets with 3G access, even the tech-savvy folks could start opting for two mobile devices: one for on-the-go computing and data access (like a tablet or smartphone), and another for simple talk and text.

One thing's for sure: with the new carriers now not only having to duke it out aggressively with one another, but also with sub-brands of the Big Three, the situation will be a very positive one for consumers.

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