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Cellular Phone Forum / Providers / Fido / May 2004

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TELUS Mobility ranks No. 1 in North America in wireless industry study

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twtwwtin - 28 May 2004 15:47 GMT
First Canadian wireless carrier to be ranked in top spot by N. Moore
   Capital

   SCARBOROUGH, ON, May 27 /CNW/ - TELUS Mobility is pleased to have been
selected as the number one wireless carrier in North America in the quarterly
ranking of the continent's major wireless carriers conducted by N. Moore
Capital, Ltd., an independent company based in New York that provides
financial analysis of the telecommunications industry.
   "Nothing new to report here as TELUS Mobility continues to be one of the
best performing wireless operators in all of North America... finally breaking
to the top of the charts with a first place ranking," said Jeffery Hines,
president of N. Moore Capital, in the firm's May 2004 report. The full Q4 2004
ranking chart is attached at the bottom of this release.
   N. Moore Capital's report analyzed the first-quarter 2004 performance of
the 20 major wireless carriers in North America based on five main metrics:
Subscriber growth, average revenue per subscriber, churn, free cash flow per
subscriber and cost of acquisition. TELUS Mobility ranked first in a tie with
its strategic partner Verizon Wireless.
   "We're gratified by this independent recognition of TELUS Mobility's
industry-leading operational and financial performance," said George Cope, CEO
and president of TELUS Mobility. "Our unsurpassed national coverage,
exceptional client care and industry-leading products have kept us at the
forefront of the wireless business, not just at home but right across the
continent."

   About TELUS Mobility
   TELUS Mobility provides its more than 3.5 million clients across Canada
with a full suite of wireless voice, Internet and data services through its
PCS and Mike digital wireless networks. For more about TELUS Mobility, please
visit telusmobility.com.
   TELUS is Canada's second largest telecommunications company with more
than Cdn$7 billion of annual revenue, more than 4.8 million network access
lines and more than 3.5 million wireless subscribers. The company provides
subscribers across Canada with a full range of telecommunications products and
services utilizing next-generation Internet-based technologies, including data
and voice services through TELUS Communications Inc. and wireless services
through TELUS Mobility.

   <<
   1Q04 North American wireless services update
   N. Moore Capital, Ltd.

   -------------------------------------------------------------------------
   1Q04                    Sub                               piFCF/
   Rankings               Growth    COA     ARPU     Churn     Sub    Total
   -------------------------------------------------------------------------
   TELUS Mobility           8        3       15        2        3       31
   Verizon Wireless         1        5       13        4        8       31
   Nextel                  12       20        1        5        1       39
   Alamosa PCS              5       13        7       11        4       40
   Western Wireless        10       12       11        6        2       41
   Alltel                   7        8       14       11        5       45
   US Unwired               9        2       10       18        7       46
   Cingular                 4        1       12       13       16       46
   Bell Mobility            6       15       18        1        9       49
   Nextel Partners         16       16        2        3       13       50
   Sprint PCS              14       10        3       15       12       54
   AirGate PCS             17       11        5       16        6       55
   T-Mobile (USA)           3        9        8       17       19       56
   US Cellular              2       17       16        7       18       60
   Triton PCS              13       18        9       10       11       61
   Rogers                  15        6       19        9       14       63
   AT&T Wireless           20        7        4       20       15       66
   Ubiquitel               11       14        6       18       17       66
   Dobson                  19       19       17        8       10       73
   Microcell               18        4       20       14       20       76
   -------------------------------------------------------------------------

   (*) COA: Cost of acquisition per subscriber.
   (*) ARPU: Average revenue per unit/subscriber per month.
   (*) piFCF per subscriber: Pre-interest expense free-cash-flow per
       subscriber per month.

   >>

For further information: Media contact: Mark Langton, (416) 684-3454,
mark.langton@telus.com; Investor relations contact: Robert Mitchell,
(416) 279-3219, robert.mitchell2@telus.com

http://www.cnw.ca/fr/releases/archive/May2004/27/c8247.html
repatch - 28 May 2004 16:53 GMT
Hehehehe, first place on the money front, and WHERE on the customer service
front... :(

> First Canadian wireless carrier to be ranked in top spot by N. Moore
>     Capital
[quoted text clipped - 76 lines]
>
> http://www.cnw.ca/fr/releases/archive/May2004/27/c8247.html
JF Mezei - 28 May 2004 18:17 GMT
> Hehehehe, first place on the money front, and WHERE on the customer service
> front... :(

> >     Microcell               18        4       20       14       20

Note that Microcell has the highest ARPU (average revenue per subscriber) of
the whole bunch.

I am susprised that their churn is still so high though. They used to be the
lowest in canada when they started.
Brendan McCullough - 29 May 2004 01:02 GMT
>>Hehehehe, first place on the money front, and WHERE on the customer service
>>front... :(
[quoted text clipped - 3 lines]
> Note that Microcell has the highest ARPU (average revenue per subscriber) of
> the whole bunch.

Unfortunately, the chart shows that Microcell has the lowest ARPU.
These scores are rankings (the higher number is not good if you are the
provider, it is good if you are the customer!)

> I am susprised that their churn is still so high though. They used to be the
> lowest in canada when they started.

This is very worrying.  I am guessing that it is a reflection of the
number of pre-paid customers.

Brendan
twtwwtin - 28 May 2004 18:29 GMT
Oh, you must have missed the small print... The customer is ranked at 99th!;-)
Joseph - 29 May 2004 11:34 GMT
And what does this have to do with Fido?

>First Canadian wireless carrier to be ranked in top spot by N. Moore
>    Capital
[quoted text clipped - 76 lines]
>
>http://www.cnw.ca/fr/releases/archive/May2004/27/c8247.html

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Brendan McCullough - 29 May 2004 13:19 GMT
Well firstly, in this comparison Telus scored at the top and Fido at the
bottom.  And secondly, Telus is proposing to buy Fido.  So it is relevant.

Brendan

> And what does this have to do with Fido?
>
[quoted text clipped - 81 lines]
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Joseph - 30 May 2004 03:55 GMT
>Well firstly, in this comparison Telus scored at the top and Fido at the
>bottom.  And secondly, Telus is proposing to buy Fido.  So it is relevant.

That is *really* a stretch.

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Brendan McCullough - 30 May 2004 21:30 GMT
Whoa, what part of this is a stretch?

I referred only to this survey.  I am not vouching for its veracity, but
the unmistakable conclusion is that Telus as a business, is doing better
than Fido in these measures.  And it is a fact that Telus is proposing
to acquire Microcell (Fido).

Brendan

>>Well firstly, in this comparison Telus scored at the top and Fido at the
>>bottom.  And secondly, Telus is proposing to buy Fido.  So it is relevant.
[quoted text clipped - 3 lines]
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davidjd - 29 May 2004 16:14 GMT
With all due respect Brendan, if you know anything much about Fido users in
general, the majority of us would rather give up cellular phones altogether
rather than go with Telus. GSM is the better technology and offers both
novice and professional users the most flexibility in terms of handsets and
in Fido in great calling plans.  Finally, if one looks carefully at that
chart near the bottom, Microcell scored the highest Subscriber Growth and
highest Average Revenue Per Unit/Subscriber. Additionally, though their
Churn rate is high (a consequence of having such a large Pay As You
Go/Pre-paid clientele), it is by no means higher than, say AT&T Wireless,
T-Mobile or Sprint in the USA for example. Remember, when the majority of
your subscribers (as in the case with Telus) are clients on monthly plans
who are locked into 2 and 3 year contracts with the company, their churn
rate is logically much lower.
I don't think the sale of Fido to Telus will go through, but, if - Heaven
Forbid- it does and Telus tries to move us over to CDMA, a large number of
Fido clients will likely move over to Rogers Wireless, reluctantly albeit. A
mass UNLOCKING programme could be set up by Rogers in all their larger
outlets thereby negating the need to bear the costs of New Handset in most
instances and seamlessly integrating their large new bunch of disgruntled
clients.
Fido is the best thing happening to the cellular industry in Canada and I
pray to God that no such sale takes place.
Dave

>Well firstly, in this comparison Telus scored at the top and Fido at the
>bottom.  And secondly, Telus is proposing to buy Fido.  So it is relevant.

Brendan

> First Canadian wireless carrier to be ranked in top spot by N. Moore
>     Capital
[quoted text clipped - 76 lines]
>
> http://www.cnw.ca/fr/releases/archive/May2004/27/c8247.html
The MoFo - 29 May 2004 16:25 GMT
That's bullshit.

90% of the Fido users (or all cell phone users, in fact) could care less
about the technology. Give them a nice phone and good price plan and they
stay. And they get to keep their phone number... The majority of users still
use their phones simply to make / receive calls, use a little VM, and that's
about it. And that's all they will care about.

The bottom line is that most people are inherently lazy, and will just take
what is given to them, if it is a good deal.

To say that "... the majority of us would rather give up cellular phones
altogether..." just shows that you really have no clue about cell users.

Now, if you said the majority of people who use newgroups / HoFo, and the
like, that would be a different story. That I could understand.

Do yourself a favour - get a clue before posting again, you are just making
an a.s of yourself.

> With all due respect Brendan, if you know anything much about Fido users in
> general, the majority of us would rather give up cellular phones altogether
[quoted text clipped - 80 lines]
> >     1Q04 North American wireless services update
> >     N. Moore Capital, Ltd.

 ----------------------------------------------------------------------
> ---
> >     1Q04                    Sub                               piFCF/
> >     Rankings               Growth    COA     ARPU     Churn     Sub
> Total

 ----------------------------------------------------------------------
> ---
> >     TELUS Mobility           8        3       15        2        3
[quoted text clipped - 37 lines]
> >     Microcell               18        4       20       14       20
> 76

 ----------------------------------------------------------------------
> ---
> >
[quoted text clipped - 10 lines]
> >
> > http://www.cnw.ca/fr/releases/archive/May2004/27/c8247.html
Joseph - 30 May 2004 04:00 GMT
>Do yourself a favour - get a clue before posting again, you are just making
>an a.s of yourself.

Seems to me that *lots* of people seem to have that talent on this
newsgroup (if you'll look in the mirror.)

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Super Dave - 30 May 2004 05:16 GMT
> Do yourself a favour - get a clue before posting again, you are just making
> an a.s of yourself.

You just made a bigger one of yourself by being an arrogant SOB
The MoFo - 30 May 2004 07:02 GMT
> > Do yourself a favour - get a clue before posting again, you are just
> making
> > an a.s of yourself.
>
> You just made a bigger one of yourself by being an arrogant SOB

If the guy took his "Fido Beer Goggles" off for a second and put something
down that made sense, we would not have an issue. At least I know what the
hell I am talking about. If you can't pull your head out of your a.s and /or
make stupid comments, expect to get flamed - you deserve it.

These dumbass Fido vs Telus debates are useless. Especially when the Fido or
Telus (or even worse, CDMA or GSM) zealots get involved.
Joseph - 30 May 2004 14:59 GMT
>These dumbass Fido vs Telus debates are useless. Especially when the Fido or
>Telus (or even worse, CDMA or GSM) zealots get involved.

Yeah, what she said!

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JF Mezei - 29 May 2004 18:39 GMT
> chart near the bottom, Microcell scored the highest Subscriber Growth and
> highest Average Revenue Per Unit/Subscriber.

In that chart, the numbers reflect a ranking.

    Microcell               18        4       20       14       20

18th out of 20 for suscriber growth
4th for cost of acquisitiuon (that is good)
20th for ARPU
14th for Churn
20th for that fancy measure.

> Go/Pre-paid clientele), it is by no means higher than, say AT&T Wireless,

AT&T Wireless is not a good comparison. They were in a tailspin and Cingular
will now attempt to fix that.

> who are locked into 2 and 3 year contracts with the company, their churn
> rate is logically much lower.

Yes and no. Fido gets "temporary" customers that the others don't. If someone
needs a phone for just a couple of months, he won't go with Bell/Telus/Rogers.
But he will contribute to higher churn for Fido.

What Fido should do is provide some chart showing what percentage of its
customers are very loyal, and what percentage are transitory.  It could be
that a very small percentage of customers general 99%? of the churn while the
rest are very loyal/stable.

Of course, now that Fido is also under contract, it remains to be seen how
their churn will change.

> I don't think the sale of Fido to Telus will go through, but, if - Heaven
> Forbid- it does and Telus tries to move us over to CDMA, a large number of
> Fido clients will likely move over to Rogers Wireless,

If fairness, most mobile customers don't know the difference between CDMA and
GSM. Note that CDMA also has SMS now. And in the states, some CDMA networks
are starting to offer 3G data services, but no GSM has it yet.

> reluctantly albeit. A
> mass UNLOCKING programme could be set up by Rogers in all their larger
> outlets thereby negating the need to bear the costs of New Handset

The locks are owned by Microcell. Either Industry Canada would have to force
Microcell to relinquish all locks in exchange for its elimination by Telus, or
Rogers would have to buy those locks. It may still turn out cheaper than
providing totally new handsets.
Joseph - 30 May 2004 03:59 GMT
>With all due respect Brendan, if you know anything much about Fido users in
>general, the majority of us would rather give up cellular phones altogether
[quoted text clipped - 13 lines]
>Fido clients will likely move over to Rogers Wireless, reluctantly albeit. A
>mass UNLOCKING programme could be set up by Rogers in all their larger

See Steve Punter's take on the proposed buyout of Fido by Telus:

http://www.arcx.com/sites/faq.htm#TelusBuyFido

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mistaroboto - 30 May 2004 21:36 GMT
> Fido is the best thing happening to the cellular industry in Canada and I
> pray to God that no such sale takes place.
> Dave

The snowball is rolling downhill, Microcell will be sold, just might not be
to Telus that's all :)
 
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