Quebec-based Fizz bubbles up into local mobile market

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For the first time since Bell acquired MTS in 2017, Manitobans will soon have a new option for mobile wireless service.

Fizz, the “flanker” brand of Quebecor Inc.’s wireless companies Videotron and Freedom Mobile, is recruiting beta testers in Winnipeg to help smooth out any service bugs that may occur.

It joins established major telecoms and flanker brands Telus (Koodo), Bell (Virgin Plus) and Rogers (Fido) in the Manitoba market.

Those Fizz beta customers will be rewarded with six months of service at a 75 per cent discount. For instance, beta users can pay $12.50 per month for a plan including 60 GB of data, unlimited texting, unlimited minutes and voicemail (but not including international calls).

After the six-month test period, Fizz will charge $50 per month for a similar plan.

Martin Gendron, general director, said the Winnipeg rollout is different from anything else Fizz has done. The lower-cost flanker service went into action in Vancouver, Edmonton and Calgary last year, and has been offered in Quebec since 2018.

Quebecor has its own wireless infrastructure in Quebec and the acquisition of Freedom Mobile gave it a network in Ontario and Vancouver, Calgary and Edmonton and a platform for Fizz to operate on in those markets.

Last year, the CRTC created regulations for Mobile Virtual Network Operators to negotiate prices to access incumbents’ networks and an arbitration process if negotiations fail.

The Winnipeg launch for Fizz is the first for the company relying solely on the MNVO framework.

“The CRTC and the Canadian government wanted to create more competition in the wireless business and created the MVNO framework, which made it more appealing for companies like Quebecor to operate,” Gendron said.

Like the other flanker services, Fizz also offers perks such as rolling unused data over to the next month, sharing data and collecting loyalty points.

What might set Fizz apart from its competitors is its interactions with customers is exclusively online. There are no brick-and-mortar stores or customer support call centres.

“We’ve put a lot of resources into creating the best online experience,” said Gendron.

He said the incumbents have responded in other markets with more competitive pricing, which is not surprising as that’s been the typical marketplace response every time there’s a new entrant in the wireless business.

“We understand that more competition means better pricing,” said Gendron. “People in Manitoba should be happy about that.”

Morgan Shipley, a spokesperson for Bell MTS, said: “We welcome the increased competition in Manitoba. Four major mobility players operating nationwide, in addition to other regional carriers, is evidence that market forces are working. We’ve competed against Videotron in other parts of the country and we’ll compete with them here in Winnipeg.”

Gendron said Fizz is looking to sign up as many beta customers as it can and has no intention to cap the number.

Videotron has been in the wireless business since 2011. The Freedom Mobile acquisition that closed last year gives it a beachhead in other large markets in the country.

Gendron said Freedom Mobile does plan to enter the Manitoba market at a later, unspecified date.

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Martin Cash

Martin Cash
Reporter

Martin Cash has been writing a column and business news at the Free Press since 1989. Over those years he’s written through a number of business cycles and the rise and fall (and rise) in fortunes of many local businesses.