With the Availability of Iphone, Telus Increases Risk for Blackberry
Telus will be facing a risk for Blackberry, knowing that iPhone is ringing a bell.
BCE Inc. and Telus, both Canadian wireless carriers will provide Apple's iPhone by next month which can make BlackBerry maker Research in Motion to battle for subscribers on its territory.
As of the moment, Rogers Communications - the third major wireless carrier is the only one offering iPhone in Canada since the company is currently using GSM and HSPA wireless technology where iPhone runs.
HSPA upgrade which should be finished by 2010 will be up and ready this coming November, BCE and Telus announced. Added to it, they stated that they also have agreements with Apple that they will be offering iPhone in Canada.
The three major wireless carriers will be all offering the BlackBerry.
There are analysts that concluded that with the high finely tuned competition in Canada, the growth and productivity of RIM will be hollowed. Kaufman Bros analyst Shaw Wu stated that with the competition will surely heat up and the growth that RIM have right now will somewhat change.
About 34 million is the population of Canada, it may be a small market if you will think of the global market but with the current situation, knowing that iPhone is cheaper and much available all over the world, RIM will definitely face a lot of pressure.
Carmi Levy, independent technology analyst stated that the key competitive advantage of RIM having the Canadian market has been remove, which make the competition higher for RIM.
Before, it never been a concern for RIM in having iPhone since they have almost lawyers, politicians, business executives, and other professionals, the answer to iPhone is by releasing multimedia-laden handsets such as Pearl and
BlackBerry Storm. Now, RIM will face direct competition with Apple and Nokia or Palm Inc.
Mr. Wu stated that in spite of the tough competition, RIM and Apple has gained its success. So, there maybe a room for both to do well in the market, he added.
During a government auction last year, there are upstart providers who won wireless spectrum and they plan to start service to challenge the big three carriers which are BCE, Telus and Rogers.
Mr. Levy stated that now that they are offering iPhone the competition would not be that tough as the new carriers would come out of the market.
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