Mobilicity Adds 63,000 Subscribers In Q4, Claims To Be “The Fastest-growing New Wireless Entrant”

by Gaurav Kheterpal on February 16, 2012

2011 was a remarkable year for Mobilicity. The upstart wireless carrier openly challenged Canada’s wireless trio-poly, launched its network in Calgary and clinched key retail distribution deals with Zellers, Walmart and Metro Stores.

Mobilicity added several new devices to its smartphone portfolio and exerted pricing pressure on competitors by cutting its data roaming rates and launching free data on unlimited plans. However, there were plenty of hiccups as well – the company axed three senior executives and CEO Dave Robbin left Mobilicity to pursue other interests.

Mobilicity yesterday reported that it added 63,000 net subscribers during the fourth quarter of 2011 and staked its claim to be the “nation’s fastest-growing new wireless entrant.

Mobilicity claims its staggering growth rate has outpaced fellow competitors – Wind Mobile and Public Mobile. The company reports it finished the year with an average revenue per user (ARPU) slightly over $30. Though the company declined to disclose its year-end subscriber figures, The Globe quotes analysts who suggested Mobilicity had roughly 187,000 subscribers at the end of 2011, while rivals Wind Mobile and Public Mobile had approximately 408,000 and 199,000, respectively.

Last May, Wind Mobile claimed to be the “fastest growing wireless carrier in Canada” with a combined user base of 300,000. Backed by Globalive, Wind Mobile aspired to emerge as “Canada’s fourth national wireless carrier”.

Last December, reports from Bloomberg News suggested that Globalive, Wind Mobile’s parent company, was purportedly in talks to purchase Mobilicity. As my fellow blogger Jordan Richardson mentioned back then – WIND and Mobilicity have a number of things in common. While WIND clearly has larger aspirations, both companies have service in Toronto, Ottawa, Calgary, Edmonton, and Alberta. And both companies use AWS band spectrum, which means that their frequencies could be combined. While that didn’t happen, Mobilicity and Wind Mobile are currently competing in a fierce battle to be Canada’s fastest-growing new wireless entrant.

“In just our second year of operations, Mobilicity continues to shake up the industry as the fastest-growing new entrant, adding even more subscribers last quarter than one of the Big 3 incumbents,” said Mobilicity President and Chief Operating Officer Stewart Lyons. “Our value-based service is clearly resonating with Canadian consumers. The Federal Government’s desire to foster a competitive environment has worked, and providing new entrants with access to more spectrum through the 700 MHz auction will be an important component of furthering the gains in competition realized to date.”

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Written by: Gaurav Kheterpal. www.digitcom.ca. Follow TheTelecomBlog.comby:RSS,TwitterFacebook, or YouTube.

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