How are Fido and Cityfone Related?
Both of these services utilize the same cell sites, but none of them actually run a GSM network. They are merely service providers for Microcell Connexions. Yes Fido and Microcell Connexions have the same parent company, but they operate as different entities. Fido purchases bulk airtime from Microcell Connexions at a wholesale price. Cityfone do the same for their newly-launched services. If you think of Microcell Connexions as a manufacturer and Fido/Cityfone as retail outlets, then I think you can get a better picture of how this arrangement works. This brilliant marketing scheme goes one step further. GSM technology allows Microcell Connexions to “plug in” any long distance carrier they please. Furthermore, both companies get a direct connection to the switch at Microcell Connexions, so they have full and independent control over the activation and de-activation of subscribers. This further increases competition in the wireless market without anyone having to build another network.
