BMV Holdings to Pitch No-Frills Cell Phone Service to Low-Income Canadians

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BMV Holdings to Pitch No-Frills Cell Phone Service to Low-Income Canadians

6:00 am on November 4, 2008 | Category: Business, Telecom Services, Wireless

BMV Holdings, a company that purchased $52 million worth of wireless spectrum in Canada’s most recent airwaves auction, has revealed plans to have a no-frills wireless offering up and running in Ontario and Quebec by next fall.

“We’re starting from scratch and we’re only going to have one rate plan,” said Alek Krstajic, CEO of the Toronto-based company, noting that unlimited talk and text would cost no more than $40 per month.

BMV’s network is expected to cover almost 19 million Canadians from Windsor, Ontraio to Quebec City, and will be geared toward low-income consumers, especially those who haven’t had a cell phone before. These users are most interested in a discount cell phone service, with a predictable monthly bill, according to Krstajic.

“Their biggest issue: ‘I live paycheque to paycheque. I can’t afford to go one month from $50 to one month where I pay $80 and another where it’s $120 because I used it a lot,’” he explained.

Currently, an estimated 60% of Canadians have at least one cell phone. Given that many countries boast 90% penetration rates, this suggests that there is still plenty of room for growth in the Canadian wireless market.

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Now we need to get something like this in the U.S. Unlimited calling to the tune of $40 a month is cheaper than most landlines, plus when you factor in they’re adding unlimited text it looks like it will be a very enticing plan for people with lower income, and even some who just want cheaper cellular service.

Comment by Phone TV Internet — November 5, 2008 #