Martian

So, it's finally happened. WIND Mobile opened stores and kiosks in the Greater Toronto Area yesterday, with promises of a Calgary launch today.

This is looking like it'll prove to be quite the experiment. Aside from substantially cheaper plans, WIND is not offering subsidized (free or reduced cost) phones. They expect the customer to shell out the price of the phone up-front in exchange for avoiding any sort of contractual obligations. In the words of CEO Ken Campbell, "our customers will stay with us because they want to, not because they have to."

The Highlights:

- Four phones and one USB stick available at launch; the phones range from a basic $130 no name model up to a Blackberry Bold 9700 for $450.

- Voice plans starting as low as $15 per month, with no SAF or 911 charges.

- Substantial benefits available in WIND home zones (currently only available in Toronto and Calgary, with Ottawa, Edmonton and Vancouver planned for next year) offset by prices of $0.25 per minute for incoming and outgoing calls and $4 per MB for data in 'away zones' (the remainder of the coverage).

- Unlimited data plans available for $35 per month; tethering is a free feature on the Blackberry.

I think the biggest stumbling block is going to be the home and away aspect of this, which is just roaming in disguise. The big three introduced unlimited domestic roaming ages ago, and I'm left wondering if customers will be willing to make a regression in that regard. If the price is right, I suppose.

The idea of having to pay the up front cost of the phones may also be an issue. I don't see that being as much of a hurdle, though -- after all, it pays for itself in the cheaper and more functional plans available. I'm currently paying $38 per month for a basic cell phone plan; most folks I've spoken with agree that it's fairly cheap, and that's for the absolute basic service (no text messaging, no data and no voicemail). $15 would be an attractive figure to me, and on that plan I'd make back the money I'd have to spend for the basic phone in less than a year.

Analysis:

WIND doesn't really do what people expect a cell phone to do -- you won't be able to use it any time and any place. Still, when you consider that most folks probably don't do a lot of calling away from home, I could see it having a lot of value. On the other hand, the cost of entry may prove a barrier to low income individuals, who might find it easier to commit to $30-$40 for three years, rather than drop $150 up front. Their small selection of phones may prove an issue in marketing their data plans, as most folks who are interested in such things want an iPhone or Droid or some similar high end device. While there might be people willing to spend the $400-$600 the typical smart phone costs, they can't buy what WIND doesn't sell.

It'll be interesting to see where this goes. I want WIND to succeed, but now that I see what they're actually offering I'm having some doubts.

__________________
I wake up in the morning more tired than before I slept
I get through cryin' and I'm sadder than before I wept
I get through thinkin' now, and the thoughts have left my head
I get through speakin' and I can't remember, not a word that I said

- Ben Harper, Show Me A Little Shame