Thursday, June 10, 2010

Wind Mobile launches in Vancouver

http://www.vancouversun.com/technology/Wind+Mobile+launches+Vancouver/3110612/story.html

Summary:

The article is about Wind Mobile opening in Vancouver. It is know for its lower-cost wireless service. Including Vancouver, Wind Mobile is in six cities. With an additional telecommunication company, it increases the competition in Canada’s wireless market. There are no contracts that allow customers to leave if they don’t enjoy the provided service. Wind offers many features such as: unlimited talk and data plans at no extra cost upon signing with them, 50% off on the first six months with the company before June 30, and for each friend one introduces, one month of wireless service is free.

Connection:

With Wind Mobile joining the wireless industry in Vancouver, this increases the competition. This also creates a more competitive oligopoly. Oligopoly is a competitive situation characterized by an industry that is comprised of only a few firms. Other companies will be significantly affected because they might have to change their services according to Wind’s cheaper plans in the market now. Market share will also be lost to Wind. With the 50% off for the first six months, a lot of people would be attracted to this promotion because a lot of other companies don’t offer this.

Reflection:

In my opinion, with Wind being an additional wireless industry in Canada, it benefits the consumers. Companies such as Fido and Rogers will have to consider the promotions that Wind offers. It is likely that these plans are only temporary to attract customers. It would be hard for Wind to really make a profit with these types of promotions. Therefore eventually they’ll have to increase the prices for their plans. In the end, Wind will be like any wireless network company.

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