TELUS CEO: Don’t Expect Price War with Verizon, Not Their ‘Style’
If you thought Verizon’s entrance into the Canadian wireless market would trigger a price war, you may be wrong, according to Telus CEO Darren Entwistle. That’s typically not their style, he says, which makes us wonder what their style is. But Entwistle has an answer for that as well.
“That’s typically not Verizon’s style,” chief executive Darren Entwistle said Thursday in an interview with The Canadian Press.
“Their philosophy has been more on premium pricing,” he said, adding that Verizon’s focus would be on its business clients that have operations in Canada in the Montreal and Toronto areas.
“So I think that mitigates the probability of a wider price war within the consumer market segment.”
Entwistle now thinks the possibility of Verizon coming to Canada is now 50–50. His words strengthen the Big Three’s position, as the rumours of the red US carrier’s interest in the market has caused a cumulative loss of $14.7 billion on the capital markets.
In line with the Big Three’s marketing campaign, which highlights the importance of rural areas, Entwistle points to Verizon’s strategy in the US. The carrier has turned down money from the American telecom regulator to develop network infrastructure in rural areas, saying it has its own strategy within rural domains.
In other words, Verizon will be focusing on large markets such as Montreal and Toronto, he suggests.
But Entwistle isn’t the only one thinking that there won’t be a price war if Verizon steps into Canada. A recent study published by Moody’s suggests the same.
What would you expect from a fourth national carrier?