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Contest Heats up Somewhere between Telus and Shaw

The increasing convergence between television and phone services has been made more apparent this week, with Shaw and Telus discovering new ways to grab each others customers in the province of British Columbia.

Shaw has recently started its own digital phone VoIP service, which offers unlimited local and long distance calling at a cost 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 they are expanding in to the huge market of Vancouver, BC. Merrill Lynch estimates that the service will steal 150,000 customer from Telus over the next year.

Telus, meanwhile, is trying to pull of the same trick against Shaw Cable, by launching a satellite television service in Edmonton and Calgary late last year. Telus customer service They intend to launch the same offering for Vancouver and the Fraser Valley by the summer.

Ultimately, both companies can become in direct competition together over exactly the same market. Most customers can become choosing one or one other as their exclusive provider, in order to cut costs by bundling services.

At this point it is difficult to share with whether this trend of market convergence will cause one company to become dominant over one other, or if it only will create a gradual reshuffling of subscribers. If the later happens, customers will more than likely take advantage of the increased level of choice and potential for pricing competition.

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