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Public Mobile to offer no frills wireless plans

Posted by Erin Bury / March 30, 2010

Public Mobile WirelessPredictability and likability -- these are not exactly things often associated with a wireless carrier. If I had to choose a word for my wireless bill, it would be inflated and if I had to choose one for my carrier, it would be frustrating.

So it was with an abundance of cynicism that I decided to write about the newest player in the wireless space, Public Mobile. After all, how many more carriers do we need, and isn't WIND mobile the cool new guy on the block? But once I dug a little deeper, I realized that not only is Public Mobile trying to target a different segment of Torontonians, they might just be the most affordable option out there for those who only need the basics.

Public Mobile has been in the works for the last two years, and they officially received their license in the latest round of wireless spectrum auctions. Since then, they've been putting together their management team (including appointing former Bell Mobility President Alek Krstajic as CEO), announcing their name and branding, and working towards a launch (which is now targeted for May).

I talked to their VP of Marketing, Mike Stanford, to find out how the company is different, and what it can offers Torontonians. Mike assured me that Public Mobile isn't trying to compete with the major wireless carriers, or even new entrant WIND Mobile. The company is targeting what they call the untapped market of consumers -- the one-third of Canadians who don't currently own a cell phone. "To date the incumbents have not served the low-end of the marketplace -- working class, on a budget, pay cheque to pay cheque, hard-working Canadians who don't have a lot of money to spend on luxury items," Stanford says. They're targeting this audience through their no-contracts, no-credit checks, no hidden fees approach.

The backbone of their "everybody talk" philosophy is their only plan -- $40 for unlimited talk and text. That's right -- one plan, with the option to add voicemail for an extra $5, and unlimited Canadian and U.S. long distance for another $10 -- bringing your maximum bill to $55. If you go out of your coverage zone, you won't incur roaming charges; your phone simply won't work. For anyone who's comparison shopping, WIND has a similar plan at $45/month, but you incur roaming charges when you go out of your coverage zone.

Stanford maintains there are no hidden fees on Public Mobile bills. He was adamant that the company wants to be known for predictability and no surprises. As an iPhone addict, I was interested in data plans, but there are none available. None at all. Stanford says they may add some down the line but only if they can offer an unlimited set monthly price. He said they're also planning to add to the selection of phones -- there are currently only four available.

Even though they aren't launching their network for a couple months, Public Mobile has already opened 25 stores (15 of which are in Toronto), and is giving early subscribers unlimited long distance for life as a special promotion (Stanford says they aren't offering any incentive to switch from other carriers). Public Mobile will be launching service in Toronto and Montreal in May, and will eventually roll out service in their entire coverage area, from Windsor to Quebec City.

In terms of how they'll approach customer service, Stanford says it's all about likability and "trustability." As he opines, "Consumers will do business with the business they like and trust the most." They're trying to increase their likability by featuring "real working class" people in their commercials (no retouching allowed), and by creating add-ons like the "Hold On-Hold" song (it's actually pretty catchy). Stanford says they have one golden rule for any and all communications from the company: they won't do anything with an asterisk.

Consumers know it's not about the jazzy hold songs, or the TV commercials. It's about the plans, the phones, and the bill that arrives in your mailbox every month. Clearly Public Mobile isn't for everyone (anyone who's reading this on a Smartphone will agree). They're obviously geared towards the niche market of talk and texters who live, work and play in urban areas, and definitely not a data-hungry traveler like myself. But if they hold up on the no hidden fees promise, then I can see it being a practical solution for parents getting their kids' first phone, people on a tight budget, or, hell, anyone who likes a bargain.

Discussion

36 Comments

Kevin / March 30, 2010 at 11:22 am
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$40 is still outrageous for that plan.
What what what? / March 30, 2010 at 11:36 am
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I agree. A $40 basic (even if its unlimited) plan is outrageous?
The closest plan that meets my requirements for a basic, no frills plan is Wind's $15 Chat. Seriously, I don't understand how people spend so much time having useless conversations on their phones. "Hi, yeah I'm on the bus..."
nick d replying to a comment from Kevin / March 30, 2010 at 11:37 am
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It's still cheaper than what Rogers or Bell offers as equivalent.
o_O / March 30, 2010 at 11:57 am
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This is advertorial, right?
agentsmith / March 30, 2010 at 12:01 pm
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Actually that's pretty good, Wind is the only other carrier that's comparable. Shame that voicemail is extra though, and having a phone that's dead outside your local area is silly.

Virgin Mobile is pretty good too, they offer 350 daytime minutes plus unlimited nights/weekends for $35, voicemail is included, and no "system access fee".
Mike W replying to a comment from o_O / March 30, 2010 at 12:07 pm
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I don't mind these as much given the monopoly of the big 3 and failure of the CRTC. I think companies like Wind and Public should be prompted to encourage competition.
o_O replying to a comment from Mike W / March 30, 2010 at 12:17 pm
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If BlogTO wants to do advertorial then that's okay by me, I'd just like it labeled as such. Burying details like, "Oh, btw, we wrote this article in exchange for a free trip to Iceland," is shady and makes readers like me skeptical of glowing reviews based on information provided exclusively by PR flacks.
cocoa / March 30, 2010 at 12:21 pm
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argh, why do my comments get eaten so often by this place.
cocoa trying again / March 30, 2010 at 12:22 pm
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I doubt the one third of people who don't have a phone now will want or need a plan with unlimited talk and text. I use my phone maybe twice a day and my current plan with Fido is $40, including call display, voice mail and <i>after</i> taxes.

I'm not shilling for Fido - that's still a bit too high - but Public Mobile will have to come with something much better if they're actually targeting the segment of people who don't have a phone or are 'working class'.

Also, about BlogTO's posts about the new cell providers - your coverage of WINDmobile's debut was sort of breathless and embarrassing. It didn't address any of that company's shortcomings (regulatory issues, lack of online payment, etc) and it looks like you're going the same route here. Try to be more critical, please, so we can distinguish these from advertisements.

As an example, you could have compared Public Mobile's plan here to similar plan's available on other providers to gauge whether it offers value or whether it's just marketing.
agentsmith / March 30, 2010 at 12:29 pm
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One may also want to think twice before signing up with a brand-new wireless company that may or may not still be in business in a year or two. Guaranteed some of these new carriers won't survive. Remember Amp'd Mobile from a few years ago? They lasted less than six months.
Mike replying to a comment from agentsmith / March 30, 2010 at 01:00 pm
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Exactly. I'm all for competition and lowering monthly costs through it, but who's to say that these providers won't be fly by not operations that will be gone in 6 months? If I were looking into get a cell phone right now or looking for a new provider, I'd be incredibly leery of the new kids on the block, even with the seemingly good value.
Mike replying to a comment from Mike / March 30, 2010 at 01:09 pm
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I don't know what "fly by not" means. I meant "night".
Chris replying to a comment from Mike / March 30, 2010 at 01:16 pm
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Fair enough, but if these new entrants don't get customers because people are wary of signing up with the "new guy", then they definitely will not survive and we'll be left with the same three incumbents. Yeah, the new plans they offer aren't great, but are they really dramatically worse than what's on offer now?

We can't on one hand complain about lack of competition in the wirless industry in Canada and then in same breath actively discourage people from at least considering the new guys. At least they're smart enough to launch contract-free, so there's little risk.

Don't forget that Clearnet and Fido both made quite a go of it before they got swallowed up by Telus and Rogers, respectively, a few years back - they just didn't have the funds to keep fighting the incumbents, who starting more offering competitive plans to keep up.

Wind Mobile in particular, is backed by some serious money from a company with 80 million subscribers worldwide, more than our "Big Three" combined. As they build their network out, they could really make a run at this market longer term.

Is there a risk they'll go under? Of course there is, as with any startup - but that risk rises to 100% if they don't get customers. I'm just saying is all.
DrC / March 30, 2010 at 01:29 pm
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In other countries this plan would cost $15, maybe $20. The cartel lives!
Alogon replying to a comment from cocoa / March 30, 2010 at 02:09 pm
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Because everyone loves cocoa. MMMMMMM....cocoa.
Dave7893 / March 30, 2010 at 03:10 pm
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Funny. When CityFido first came to Toronto (7 years ago?) they offered unlimited talk for $45 (It was $40 in Vancouver I believe) no contract and I was able to get unlimited txt with them for free signing up for a contract.

It's a good thing that in 7 years prices have improved so greatly on a whole.
Derek replying to a comment from o_O / March 30, 2010 at 03:17 pm
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Press junkets are not advertorial -- and the disclosure wasn't buried at all. Jerrold was fully authorized to write what ever he wanted.

And, to cop your attitude, I don't mind you commenting, but this anonymous know-it-all stuff is tedious. It's clearly not as though you believe in full disclosure. Why, out of curiosity, are you afraid to reveal your identity? Given your history of comments, I'm suspicious of your motives.
Eric S. Smith replying to a comment from Derek / March 30, 2010 at 03:40 pm
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"And, to cop your attitude..."

I don't see what that's going to win you.

If you post a fluffy article, your problem is that you've posted a fluffy article, not that someone was a big meanie for pointing it out.
Richard S / March 30, 2010 at 03:59 pm
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So many problems...
a) the price is not competitive - Wind offers the same thing
b) it uses the CDMA network
c) they're targetting those who probably don't have good credit etc.; not sure how many of those will spend $40+. IMO the prepaid market (Wind notwithstanding since its a different target market than regular prepaid) caps out around $25.
d) their network is going to be very, very small
e) they're going to need to overcome the problems that are sure to crop up; Wind is a bigger more powerful company and the still can't get their shit straight (many, many people can't make calls longer than 5-10 minutes, poor coverage, etc.)
f) Public Mobile sounds like the name of a social assistance group/team/organization.
g) What is sure to be a weak phone selection



I'm a student who doesn't call a lot and there's no way in hell I'd consider Public mobile; $45 IS pricey.
Derek replying to a comment from Eric S. Smith / March 30, 2010 at 04:28 pm
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Advertorial and fluff aren't the same thing -- and it's imperative for me to point that out.
Daniel / March 30, 2010 at 04:40 pm
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What a bunch of cheapos! You have to pay to play. A cell phone is a LUXURY people, not a basic human need.

I feel prices are fair given the level of demand and supply in Canada. Comparing our plans and saying "it would only cost $15 in another country" doesnt amount to anything. Canada enjoys a very high standard of living and as a result, things cost more. Also, Canada is a relatively small market compared to US, Europe, Asia...what do you expect?

Toronto people are funny bunch...they have no problem dropping $6 on a single coffee, yet $1.50 per day for a phone gets their panties in a knot.



Par72 replying to a comment from Daniel / March 30, 2010 at 06:01 pm
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Well Daniel,

That's probably because most consumers understand the idea that with technology, as time goes by, prices should drop. Anything else is business gouging the consumer when competition fails in the market place.

This happens in almost every country, yet seems to not happen in Canada in regards to the cell phone industry.
Daniel replying to a comment from Par72 / March 30, 2010 at 08:24 pm
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Keyword is SHOULD drop. Do think its cheap running a phone network? They are in business to make money first and service clients second. If you think they are making too much money, then just buy their stock. You lose on the phone, but win on the stock. You might also learn something about how the economy works instead of how it SHOULD work.

Also, all things being equal, the price of a cell phone is cheaper. Its just in today's world there are super expensive phones, data plans, apps, features, talk/text packages. If you compare the price of a simple phone with the same features from 10 years ago (basically, just voice), I am sure they are about the same price, if not less when inflation is factored.

Hey, I am guilty too of owning an expensive phone...except of course, my work pays for it.
Par72 / March 30, 2010 at 09:02 pm
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We are not talking about expensive phones. Which drop in price as soon as hardware costs come down and competition for a newer device comes out.

Do you know what this would cost in today's $$$?
http://zedomax.com/blog/wp-content/uploads/2009/03/cellphone-ad.jpg

We are talking about rate plans. We still don't have anything available close to what is offered in other countries.

http://www.oecd.org/document/20/0,3343,en_2649_201185_43471316_1_1_1_1,00.html

We are always rated around the highest in the world. Usually with the US. And the US kicks our ass in what is offered for around the same amount.

How long has the US had nation wide calling???

Of course as an investor you love buying these stocks. But the truth is Canadians have been getting bent over for years. I'm glad you love paying more every year. I for one am tired about losing services I had 7 years ago and being expected to pay for them. When truth is prices should be falling or services offered should be growing.
Daniel / March 30, 2010 at 09:36 pm
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What services have you lost? You have a plethora of new services that were not even imaginable 10 years ago. I think what you meant to say was you dont want to pay for them.

Did you ever think that maybe the cell phone companies sweetened the deal early on with free services and better rate plans in order to get people hooked? I think not even they knew how big the market would be. Even welfare bums have a cell phone now.
Richard S replying to a comment from Par72 / March 31, 2010 at 08:44 am
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Remember, in Canada networks have to provide for the second largest country in the world with population less than that of some cities. Ontario alone is larger than quite a few European countries. And despite that we still have high-end networks out there (3.5G, 4G). That same USA that you're comparing to has 2 major providers running on a CDMA network...
V / March 31, 2010 at 10:28 am
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7-11 SpeakOut phone is a much better option for someone who is looking for predictability and only needs the basics.
Chris Clarke / March 31, 2010 at 12:52 pm
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I really don't see how anyone without a cell phone is going to be convinced to purchase one on a $40/month plan, unlimited or not. That's a pretty high price point to start at. I agree with V, 7-11 Speakout Wireless is the best choice if you only need basic cell service.

And to those questioning this article, do you do the same for other media outlets, or just blogTO?
City374 replying to a comment from Richard S / March 31, 2010 at 02:56 pm
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Rich. That really doesn't mean all that much.

There are over 12 million people in Southern Ontario alone. That is 1/3 the population of Canada. Add probably another 5-6 million in Southern Quebec which would make it well over half the pop. of the country in a fairly small area.

If we take a look at Sweden which has about 9 million in the whole country and is more than 3 times the size of Southern Ontario. They don't seem to have a hard time offering much greater cell or internet services for a decent cost.
City374 replying to a comment from Daniel / March 31, 2010 at 03:44 pm
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Daniel. I can't speak for the poster above.

But as someone who still has his original City Fido plan. I've seen my costs go up for services I originally had.

I started paying $45. Not contract, no other fees.

Now I pay $50 plus they added a SAF and 9/11. Plus they now charge a premium for txting to the US even though I pay them $10 for an unlimited txt plan.

I'm not even sure why we get charged a 9/11 fee. You don't even need to have a cell plan. You can just have a working cell phone and 9/11 calls will go through.
Daniel replying to a comment from City374 / March 31, 2010 at 04:30 pm
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What can I tell you? Consumption culture will consume and it costs money.

I took a look at the City Fido plans...It says there in plain English:

2000 Anytime minutes for $40/month. unlimited text, no SAC, etc. The 911 fee is like $0.01/day. If you look down right now on the sidewalk, you can re-coup that monumental loss.

I think you should talk to them about your bill because it looks like you are being ripped off.
Mike W replying to a comment from Daniel / March 31, 2010 at 06:18 pm
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I know! cheapoes! You want more competition to foster more affordable prices? Quit your whining and be satisfied with what you have.

> Toronto people are funny bunch...they have no problem
> dropping $6 on a single coffee, yet $1.50 per day for
> a phone gets their panties in a knot.

I don't pay $3 for a coffee let alone $6. Or wear panties.
I smell bullshit.
City374 replying to a comment from Daniel / March 31, 2010 at 06:23 pm
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I have the original City Fido. What you are looking at is totally different plan.

In any case, I have no idea why you are arguing about this at all. If you are happy paying more for the same services the rest of the world pays less for. Great for you. But I have no doubt most Canadians feel like they are being ripped off. And truth be told, they are. But I'm glad you are happy about it.
Joe / April 23, 2010 at 05:15 pm
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40 unlimited talking local text and longdistance is amazing.
If you wine about that, you probably dont use your phone enough to appreciate it, I currently have city fido plus voicemail, after tax its about 52 bucks. I'd pay the same with these guys and get free long distance, and no contract. GREAT DEAL.

To the person saying "7-11 SpeakOut phone is a much better option" You are out of your mind! speak-out is 25cents a minute you retard. I feel like killing myself that there are people as dumb as you in this world.
jason / April 29, 2010 at 02:25 pm
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finally,, i needed a plan like this very bad, if you do buisness you need this.. i use more than 1500 minutes a month and fido since its owned by rogers is bullshit and i allways have to pay bills of 100 for ridiculus stuff
smilie / June 9, 2010 at 01:18 am
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I joined PM when they launched their service in May. For 40CAD I can call local unlimited plus Canada unlimited as a pre-launch customer, and text Canada/US unlimited, and voicemail and call display is now a standard feature with no additional fee. I was looking for a simple plan with no frills no berries no i-something, so this was a true blessing. PM's service plans really took my mental barrier off from using cellphone. Compared to the time when I used to be a F**o customer, Now I use my cellphone far more often and pay less every month. I understand PM may not be for everyone, but if you need a new cellphone, or if you're using other prepaid services now, I highlyl recommend PM

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