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Prognosis dim for wireless newbies

New wireless companies are offering consumers lower prices for talking and streaming video on their cellphones but the marketplace won’t be able to support them all, says an industry study.

New wireless companies are offering consumers lower prices for talking and streaming video on their cellphones but the marketplace won’t be able to support them all, says an industry study.

The Convergence Consulting Group said combined prices on voice and data by Wind Mobile, Mobilicity and Public Mobile have undercut Rogers, Bell and Telus and their discount brands by more than half, or up to 75 per cent when just comparing data.

The new players are offering “some really radical discounts” on data services and that’s where the growth is in this market, said Brahm Eiley, the group’s founder. But to keep gaining subscribers, the new players have to keep their prices low.

The report forecasts revenue per user will decline by one per cent this year mainly due to lower revenue from voice services.

 
 
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