National Post (National Edition)
Wind reborn as Freedom Mobile
‘Fresh start for fresh new owners’
TORONTO• Wind Mobile is changing its name to Freedom Mobile in an attempt to ditch lingering baggage associated with its brand before it launches its new LTE network in its biggest markets, Toronto and Vancouver.
The Freedom brand unveiled Monday reflects a shift under Wind’s new owner, Shaw Communications Inc., which has spent millions on network upgrades since it bought the wireless upstart for $1.6 billion almost a year ago.
“It was a chance for a fresh start with fresh new owners and a fresh new network,” CEO Alek Krstajic said in an interview on the new brand, which aims for likeability with a teddy bear mascot named Freddy and an upbeat jingle.
“It’s hard to say, ‘I don’t like Freedom,’” Krstajic joked.
Wind is trying to distance itself from the old Wind branding as it rolls out its LTE network in two markets on Nov. 27, well ahead of schedule, with an expected completion of fall 2017 across its entire footprint.
Poor network quality and customer service problems plagued Wind when it entered the market seven years ago as part of the Conservatives’ push for four competitors in each market.
But Shaw gave it a chance to change its reputation by investing $121 million on network upgrades in Ontario, British Columbia and Alberta in the first six months after the deal closed. Wind surpassed one million subscribers this summer.
While the Big Three still have network and handset advantages — Wind customers will need new handsets to use Freedom’s LTE network since most phones are not yet compatible with the AWS-3 spectrum band it uses — Krstajic said the upgrades help level the playing field.
Freedom will continue to push Ottawa for advantages for smaller wireless competitors in the upcoming 600 MHz spectrum auction, Krstajic said.
“The three incumbents have had a big head start, they were given their big tranches of spectrum for free 30 years ago,” he said. “In order for us to be able to survive and have a sustainable offering, we need low-band spectrum.”
Shaw plans to launch its own mobile service eventually, Krstajic said, but for now is setting up Freedom as a less-expensive flanker brand, similar to Rogers-owned Fido and Telus’ Koodo.
“We’ve been pretty clear there’s going to be a need for two brands,” he said, although he kept silent on the timing.
Meantime, Freedom will follow Wind’s strategy with plans at an implicit discount to the incumbents. There are no plans for “crazy discounting,” Krstajic said, noting that the new entrants went bankrupt when monthly plans were in the $20 price range.
Freedom’s flagship plan will cost $45 per month for unlimited talk and text and 6 GB of data.
Analysts welcomed the rebranding and the earlierthan-expected LTE launch.
The announcement was a “milestone” that will give the carrier a shot at attracting more profitable customers in time for the holiday shopping season, Scotiabank analyst Jeff Fan wrote in a note to clients. Shaw will also save money on the increasingly costly licensing agreement with former Wind owner VimpelCom to use the Wind brand, he wrote.
Barclays analyst Phillip Huang noted the decision not to use the Shaw brand for wireless indicates it will take some time to close the network quality gap with the Big Three.
“Rebranding to Shaw would dilute the brand for its cable business,” Huang wrote.
The announcement comes just before the federal government is expected to make a decision on whether to approve Bell’s proposed acquisition of Manitoba Telecom Services. That could take the number of wireless players in Manitoba down to three.
Huang wrote that Shaw’s investments outside its traditional footprint “may reflect some success with lobbying the government in entering other markets” such as Manitoba.
REBRANDING TO SHAW WOULD DILUTE THE BRAND.