The increasing convergence between television and phone services has been made more apparent this week, with Shaw and Telus discovering new methods to grab each others customers in the province of British Columbia.
Shaw has started its digital phone VoIP service, which provides unlimited local and long-distance calling at a price of $55. Although somewhat expensive for a VoIP offering, Shaw uses their existing brand name to inspire trust, and targets customers who spend a bundle on long-distance calls.
Shaw has recently recruited 90,000 digital phone customers across Canada, and has announced that they’re expanding to the huge market of Vancouver, BC. Merrill Lynch estimates that the service will steal 150,000 customer from Telus over another year.
Telus, meanwhile, is trying 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 tv support Most customers can become choosing one or one other as their exclusive provider, in order to cut costs by bundling services.
Now it’s difficult to share with whether this trend of market convergence can cause one company to become dominant over one other, or when it only will create a gradual reshuffling of subscribers. If the later happens, customers will likely benefit from the increased level of choice and prospect of pricing competition.