In an attempt to counter the increasing roaming charges for Canadian mobile-phone users, Roam Mobility Inc is offering consumers a better alternative.
According to a report by Globe and Mail, the Vancouver-based upstart, marketing itself as a rogue mobile company, is aggressively ramping up its rollout of cellphones, SIM cards and other devices to entice Canadians looking for cheaper alternatives to high roaming rates the major wireless companies charge when customers travel to the United States with their smartphones in tow.
Roam Mobility’s chief executive officer Emir Aboulhosn, said that they will not tell users to switch from Rogers, Telus and Bell – they’re just asking users to stop using them when they cross the border. Roam estimates that Canadians spend $800-million a year on international roaming fees, with roughly $450-million spent on U.S. roaming alone.
As per the report, Roam Mobility launched its service in January, competing with the major carriers by offering Canadian travellers unlimited talk and text plans from $3 a day, including free calls to Canada. Its data rates start as low as 2 cents a megabyte.
With the summer travel season just around the corner, Roam is in expansion mode. It will announce a new partnership with Allegiant Air to sell its products during flights starting June 1. Allegiant is a U.S. airline that services border airports such as Niagara Falls, N.Y., and offers discounted fares to popular U.S. destinations.
Roam’s products are already available at a number of Canadian and U.S. airports and at major land border duty-free shops. They will also be sold at Future Shop starting next month. Its product line includes a cellphone for talk and text; SIM cards that can be used in a consumer’s own unlocked phone; and personal “hotspot” devices that provide a high-speed data connection for up to five wireless devices (like smartphones, tablet computers or laptops) at the same time.
The report reveals that Roam has already attracted close to 20,000 customers and is on track to hit the 100,000-subscriber mark in the second quarter of 2013. Even though the vast majority of its customers are people who travel to the U.S. in short spurts, Aboulhosn says Roam can afford to be aggressive with its pricing because its capital expenditures and overhead costs are relatively low.
Source: Wireless Federation.