The increasing convergence between television and phone services has been made more apparent this week, with Shaw and Telus coming up with new methods to grab each others customers in the province of British Columbia.
Shaw has recently started a unique digital phone VoIP service, that provides unlimited local and long distance calling at a price of $55. Although somewhat expensive for a VoIP offering, Shaw uses their existing brand to inspire trust, and targets customers who spend a bundle on long distance calls.
Shaw has already recruited 90,000 digital phone customers across Canada, and has recently announced that they are expanding to the huge market of Vancouver, BC. Merrill Lynch estimates that the service will steal 150,000 customer from Telus over the following year.
Telus, meanwhile, is attempting to pull of an identical trick against Shaw Cable, by launching a satellite television service in Edmonton and Calgary late last year. Telus webmail not working They want to launch an identical offering for Vancouver and the Fraser Valley by the summer.
Ultimately, both companies can become in direct competition together over the exact same market. Most customers can become choosing one or one other as their exclusive provider, to be able to spend less by bundling services.
Now it’s difficult to tell whether this trend of market convergence may cause one company to become dominant over one other, or if it will simply cause a gradual reshuffling of subscribers. If the later happens, customers will more than likely benefit from the increased level of choice and possibility of pricing competition.Read More