Telus launches Koodo to fight “bill bulge”
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It’s not often that we see a spin-off of a telecom poking fun at its parent company. For instance, you wouldn’t see Boost ripping on Sprint in really any instance. So it was kind of strange to hear that Koodo, the newest spin-off of the Telus network, make fun of the top three carriers in Canada, its parent company included. The service, which launched yesterday after a few days of heavy rumors, is focusing on what they call “lean” cell phone plans. It’s an interesting concept with a distinct sense of humor.
“Canadians are consuming fatty, unnecessary mobility features like television, video calling and satellite radio,” the brochure said. “All the while being weighed down by the excess cost.”
To supplement the “fatty” concept, Koodo’s brochure features throwback, 80s style workout themes. Yes, we’re talking spandex and headbands…the whole nine yards.
The idea is not only to tout cheap, extras-free cell phone plans, but to distance itself from its parent. Telus relies on such services, including a monthly access fee, for their main source of revenue. However, launching this no-frills plan can help them compete with Rogers’ Fido, Bell’s Solo, and Virgin Mobile Canada. Distancing themselves from Telus can only help.
Though no one from Telus would comment on Koodo, it’s well-known that the company registered the Koodo brand last year. Telus tried a similar tack by introducing Amp’d Mobile to Canada, but that died along with the American version of the company.
And by “no extras,” they really mean no extras. The low-end package, at $15 per month, gives you 50 anytime minutes and 50 text messages. Call display and voicemail are actually an extra $5 each. Unlimited texting is also $5 per month, but you can get all three features for $10.
The best part, though, is the “tab” system. This is where you can take up to $150 off the price of a phone…kind of like a subsidy. Then, 10 percent of your monthly fee is subtracted from the tab, until the phone is paid off. If you choose to leave Koodo before you pay off your tab, though, you’ve got to settle up. Seems fair enough.
You can check out the whole operation at KoodoMobile.com.
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