Rivalry Gets hot Concerning Telus and Shaw

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

Shaw has started its own digital phone VoIP service, which provides unlimited local and cross country calling at a price of $55. Although somewhat expensive for a VoIP offering, Shaw uses their existing brand name to inspire trust, and targets customers who spend a fortune on cross country calls.

Shaw has already recruited 90,000 digital phone customers across Canada, and has announced that they are expanding into 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 wanting to pull of an identical trick against Shaw Cable, by launching a satellite television service in Edmonton and Calgary late last year. Telus tv support They intend to launch an identical offering for Vancouver and the Fraser Valley by the summer.

Ultimately, both companies find yourself in direct competition with each other over the same market. Most customers find yourself choosing one or another as their exclusive provider, in order to save money by bundling services.

Now it’s difficult to share with whether this trend of market convergence will cause one company to become dominant over another, or when it will just 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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