Mobilicity Claims Rogers Is Out To “Destroy” Them

The Globe And Mail as well as the Toronto Star are reporting that upstart wireless provider Mobilicity is about to pursue legal action under the Competition Act against Rogers if the telco goes ahead and launches Chatr which is its new discount provider. Here’s what Mobilicity CEO John Bitove had to say in the Toronto Star:

“I didn’t launch this business to be dealt an underhanded card by someone who’s much bigger,” Bitove said at a news conference.

He went further in the Globe And Mail:

In what seemed a very personal attack against Canada’s largest wireless company, Mr. Bitove added that Rogers founder Ted Rogers would have railed against this sort of “abuse of power” when he was battling the phone monopolies.

“He would be doing the exact same thing today if he were in our shoes,” Mr. Bitove said.

You know, I might say the same thing if I were his shoes and facing the prospect of having a company that is much bigger launch an assault on me. I’m going to reach out to “my best friends at Rogers” to see how they respond to these charges. When I hear something from them, I’ll post it here.

As for what I think of this, here’s my $0.02 worth. Canada needs competition in the wireless space and the Canadian government should create an environment that encourages competition. If Rogers needs to launch a brand to try defend its turf legally, then I have no problem with that. But if the sole purpose of Chatr is to create an environment that limits competition, then I have a huge problem with that.

We’ll see how this plays out over the next couple of months. But I will say this. If something underhanded is being done by either party, the government shouldn’t hesitate to step in and smack them around.

3 Responses to “Mobilicity Claims Rogers Is Out To “Destroy” Them”

  1. I think Rogers is just doing this to hit the new competition hard. If they win, it will disappear.

  2. […] Mobilicity Claims Rogers Is Out To “Destroy” Them « The IT Nerd […]

  3. Faisal Abbas Says:

    If rogers uses profits from the current business and subsidises the Chatr, that would mean that chatr is not planned to be a real competition. No non sustaining business should be allowed in the competition.

    If rogers could make chatr profitable on its own, without using big brother resources, then I think it is a valid coompetitiion and comsumer would benefit from this.

    If however, chatr is created only to curb new entrants, in addition to the them the consumers would be at loss, since rogers would change (discontinue, increate rates, decrease sersvice, etc) chatr after when it drives out the competition.

    I would think that laws in this country should have been developed against anti-competitive behaviour. But mobilicity and other entrants should have anticipated this.

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