Dave Wireless, Virgin Mobile push for cellular market share

Canada’s wireless wars are intensifying as newcomers Virgin Mobile and Dave Wireless up the stakes in the battle against incumbents Bell, Telus and Rogers.

Dave Wireless Inc. – who’s motto is “Competition is coming” – rebranded itself as Mobilicity on Tuesday and announced plans to introduce service without contracts in Toronto starting this spring.

Similar to the Wind Mobile sales model pitched to cellphone users in December, Mobilicity will sell BlackBerry, Nokia and Sony Ericsson devices at cost in order to do away with contracts.

The Toronto-based discount carrier plans to roll out coverage in Vancouver, Calgary, Edmonton and Ottawa later this year.

Also on Tuesday, Virgin Mobile Canada officially launched its first smartphones and data plans, piggybacking on the high-tech network built by Bell and Telus and completed late in 2009.

Hooking up with the HSPA+ (3G+) network means Virgin can now fully service popular devices including the BlackBerry Bold 9700 and iPhone 3GS in Canada.

"With the new HSPA+ network, Canadians have access to some of the world's most coveted, high-tech phones from the company that truly cares about them and delivers them more than they could possibly want," Sir Richard Branson, chairman of the Virgin Group, said in a statement Tuesday.

Smartphones as well as the Novatel Ovation mobile Internet stick and a Novatel MiFi Portal are now available through Virgin with a two-year contract.

“Today, Virgin Mobile is transforming itself from being predominantly a pre-paid player to a company that is truly taking on the contract and monthly plan market,” said Robert Blumenthal, president of Virgin Mobile Canada.

Rogers, Bell and Telus currently enjoy 95% of the cellular market share in Canada and all three are slated to release their fourth-quarter results in the coming weeks with Bell kicking off the earnings parade on Thursday.

Industry newcomers not are expected to dent profit margins significantly this quarter but that could change later in 2010 as the impact of new regional players, including Shaw Communications Inc. in Alberta and Videotron Ltee. in Quebec begins to make itself known.