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Telus Telecom News | Canada Phone Card News
Telus Launches ‘Koodo Mobile’ Discount Wireless Service

Date: 3/19/2008 1:22:25 PM

Canada has a new mobile phone brand, Koodo Mobile, which targets younger customers with lowcost basic wireless services, and aims to fight so called “bill bulge.”

The discount carrier is owned by Western Canada’s top telecom operator, Telus Corp., which already offers wireless services under its own brand but wants to target a new demographic without changing its core image. This strategy is similar to that of Rogers Communications and its discount wireless subsidiary, Fido.

Koodo Mobile is focusing on basic voice and SMS messaging services without all the expensive extras. Its cheapest plan costs just $15 per month for 50 anytime minutes and 50 text messages. Additional features including voicemail, call display, and unlimited text messaging are available for $5/month, or $10/month for all three.

Koodo doesn’t promote costly extras like mobile television and multimedia, and its customers don’t have to pay the system access fee of $6.95 to $8.95 per month that comes standard with most wireless plans. It also bills by the second, rather than the minute, and doesn’t charge cancellation fees to subscribers that leave.

“Canadians are consuming fatty, unnecessary mobility features like television, video calling and satellite radio,” the brochure said. “All the while being weighed down by the excess cost.”

So far, Koodo’s distribution network is limited to a few outlets in Toronto malls, but it plans to roll out a nationwide service in the future. Telus, which owns the Koodo Mobile brand name, is staying quiet about its specific plans for the time being.

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