Will new regional and national Canadian Wireless Carriers go beyond price discounting?

The Canadian spectrum auction ended this week and the good news for Canadians is that more choices are on their way.

For a full account of the outcome, check out the article in the Globe here.

Here’s the 15 second summary:

• The Canadian government raised 3 times more than anticipated during the auction
• Yak communications (owned by Globalive Communications Corp) who currently sells long distance plans in Canada is poised to be become a near national player. They now have spectrum rights in all provinces except for Quebec where they were outbid by Videotron
• Data & Audio-Visual Enterprises Wireless Inc (run by John Bitove and backed Microsoft co-founder Paul Allen) has also bought spectrum rights in 10 of the 13 largest cities in Canada. They will be targeting the 38% of Canadians who currently do not have a mobile device
• 3 new regional Carriers have emerged – Videotron in Quebec, Shaw in the West, and Bragg Communications in the East
• Consumers can expect new Carrier options to be available by this time next year

I would expect the current big three to roll out “new” plans that are more competitive than current in-market plans – but with hefty commitments… like 3 year contracts so that you’ll be stuck with a big penalty if you dare cross to the dark side next summer.

Although consumers will welcome better priced plans, the big question is – will the new entrants try to differentiate themselves beyond discounting?

If you were President for a day at the new Carrier, what would directive would you give to create a higher consumer value proposition?

Here are some initial thoughts…

• Focus more on the software and give the hardware away – or at least keep them unlocked. The more people can personalize their mobile device with widgets, apps, and tools, the more value they will see in your service.
  • How about a suggestions widget pre-loaded on every device? Publish them on the mobile web and desktop web and quarterly release a report on how many were actioned on or being considered for action
  • Make sure all communications are mobile web-enabled and supported with multiple SMS opt-in alert opportunities. I.e. SMS alert to indicate your new bill is in… then click to mobile web to view and pay etc…
• Keep the network open to allow the creation of innovative services from 3rd parties
• Create a unique perks or loyalty program that aligns with the lifestyle of their most valuable and most grow-able customers
• Offer opportunity for completely free mobile services with an Ad supported model for SMS, mobile web, and on device messaging

Let’s also hope that history does not repeat itself. The last time there was a spectrum auction in Canada (1995), Fido and Clearnet were created only to be bought out by Rogers and Telus a few years later.