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Levels of competition Gets hotter Involving Telus and Shaw

The increasing convergence between television and phone services has been made more apparent this week, with Shaw and Telus discovering new ways to grab each others customers in the province of British Columbia.

Shaw has recently started a unique digital phone VoIP service, that offers unlimited local and long-distance calling at a cost of $55. Although somewhat expensive for a VoIP offering, Shaw uses their existing manufacturer to inspire trust, and targets customers who spend a lot of money on long-distance calls.

Shaw has already recruited 90,000 digital phone customers across Canada, and has recently announced that they are expanding in to the huge market of Vancouver, BC. Merrill Lynch estimates that the service will steal 150,000 customer from Telus over the next year.

Telus, meanwhile, is wanting to pull of the same trick against Shaw Cable, by launching a satellite television service in Edmonton and Calgary late last year. They plan to launch the same offering for Vancouver and the Fraser Valley by the summer.

Ultimately, both companies can become in direct competition with one another over exactly the same market. Telus webmail not working Most customers can become choosing one or one other as their exclusive provider, to be able to conserve money by bundling services.

At this time it’s difficult to tell whether this trend of market convergence will cause one company to become dominant over one other, or when it will simply cause a gradual reshuffling of subscribers. If the later happens, customers will more than likely take advantage of the increased level of choice and prospect of pricing competition.

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