Is it fair that Rogers, the established giant of mobile dominance in Canada, and especially in Toronto, is launching a discount brand, Chat-r, to compete directly with the two newly-launched, low-cost providers in WIND Mobile and Mobilicity? John Bitove, Chairman of Mobilicity, doesn’t seem to think so.

After learning of Rogers’ intention to squarley aim for the the small companies’ bottom lines, he has filed a complaint to the Canadian Competition Bureau. “They’re trying to destroy our success,” he said to the Globe and Mail. Not surprisingly, Mobilicity is less keen than WIND to see Rogers attempt to eat into their limited market penetration, as the company only officially launched in May of this year. WIND has been around for almost a year now, and, while not the run-away success story that many hoped it would be, has certainly created a new sense of urgency in the Canadian mobile market for fairer prices and more included features. With unlimited internet usage, and low talk-and-text plans, WIND and Mobilicity have aimed themselves at urbanites who don’t need a great number of features on a phone, as well as new immigrants, who want cheaper ways to call back home. Chat-r does not intend to offer data connectivity with their talk-and-text plans, though those will be unlimited.

A few days ago, Anthony Lacavera stated that Chat-r is exactly what this country needs: more competition. On a BNN news segment, he said that Chat-r is “great for consumers… the big guys are starting to react, and the more they react, the better we look.” This heavily contrasts Bitove’s view, and brings home the idea that WIND, with their Egyptian financial backers, Orascom Telecom Holding, seem more capable of weathering out the short-term growth issues than does Mobilicity. Certainly, Rogers is going to have a much easier time than either WIND or Mobilicity in bringing Chat-r to the market, since they are providing similar service and similar prices without having to build an entirely new network infrastructure to it; instead, they are piggy-backing off existing Rogers towers in the same locations that the former carriers have launched in: Toronto, Calgary, Ottawa, Edmonton and Vancouver.

I don’t necessarily see Chat-r as a full-fledged success from the get-go. Sure, Rogers is going to leverage its own brand when advertising it, unlike with Fido which operates completely independently of its big brother. But with the knowledge that Chat-r is owned by Rogers will also come the understanding that it is not the nimble, young company that WIND is, nor the forward-looking enterprise that is Mobilicity. It’s Rogers under a new banner, and for some people, especially those that have been burned by the company in the past, Chat-r must be a huge turn-off.