Cozy oligopoly, or risk taking innovators?

by alec on June 4, 2007

In Just how cozy is Canadian Wireless, Mark Goldberg sides with Canadian wireless carriers who assert that the market is competitive. Mark writes "I have a colleague who likes to say that price discounting is a lazy approach to marketing",  and he goes on to repeat the position of the carriers that the new services they are bringing to market is evidence of a competitive market place. 

To be sure, investing in product innovation is costly, and has been the traditional defence offered by network operators when confronted with apparently rich pricing plans.  Another viewpoint worth considering is that the Canadian Wireless market may, in fact, be a cozy oligopoly, and the services and network enhancements being touted have already been pioneered in other markets.  When others blaze the trail the risk is not born by the local carrier, but rather a carrier in a foreign market.  Whether it's video telephony, navigation, or new phones, these are hardly high risk service offerings.

Alec Saunders is the Vice President of Developer Relations for BlackBerry make Research in Motion. This is his personal blog, with his personal viewpoints. Prior to this Alec was the CEO and co-founder of Calliflower — the easiest way to hold a meeting, online, on a conference call, or on the go. A double-decade veteran of product management and marketing, he spent nine years at Microsoft where he helped launch Windows 95, the first two versions of Internet Explorer, the Universal Plug and Play initiative, the push into home markets, opt-in email marketing and what might well go down in history as the very first direct email list ever.

{ 3 comments… read them below or add one }

Andrew June 4, 2007 at 7:21 am

Considering we are forced to use US carriers for wireless data (and it is still cheaper than using a CDN carrier even with forwarding costs), as our rates are so out of whack with the rest of the 3rd world, I would say that Mark is 'sipping Koolaid'

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Jason Yeung June 4, 2007 at 5:23 pm

Agreed. Data rates here are horrendous – which is exactly why I use an American carrier just for this purpose.

- Jason

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Hoddo June 5, 2007 at 1:39 am

There will always be risk even in following foreign carriers in their policies and pricing strategies. "Blaze the Trail" I say. If we fall down, we get up again – the same in Business as it is in Life.

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