Chatr Wireless directly attacks mobile startups in commercial, erases doubts over competitive intentions
Rogers' controversial new subsidiary, Chatr Wireless, is stirring the pot with its first wave of television commercials.
The new brand has received heat from Canadian telecom startups - in particular Moblicity, which filed a legal suit against Rogers - for its ruthless entry into their market. The startups, which also include Wind Mobile and Public Mobile, feel as though Chatr came into play specifically to ruin them. Rogers has substantially more resources to exhaust and therefore can trounce these newbie's efforts.
While it was already fairly obvious, it couldn't be confirmed. But then Chatr revealed its coverage areas, and they match up almost exactly with that of Wind Mobile's - even though Rogers could easily extend its coverage further, making it appear that Chatr's demographic is to be whatever the startups' are.
But what put the final nail in the coffin is Chatr's first wave of television commercials. In one, which touts Chatr's "fewer dropped calls" - again, an unfair advantage from Chatr's overarching company - the new wireless brand boldly calls out the newbies.
The commercial's narrator says that "you may have noticed some new wireless companies," and dripping with tones of high-school bullying, continues on to say that by having more dropped calls (though it never offers any numbers) these new companies are "bursting your bubble."
Chatr, then, is clearly desgined to compete precisely parallel to startups Wind and Moblicity. This raises the question of what is fair and unfair in business competition. The timing of Chatr, as well as its coverage, plans, and marketing tactics, suggest Rogers believes it can get away with a very direct attack. So the question then becomes, will any government or associations step in and stop Chatr before it nips these new startups in the bud?
What are your thoughts on Chatr? Is Rogers acting fairly or choking the market?