- Dotmobile is Canada’s first "full" MVNO cell phone carrier.
- Before it launches, Canadians can order a free SIM card.
- Unlike other Canadian mobile providers owned by the larger networks, dotmobile runs its own core network without owning any of the cell phone towers.
- The carrier's network is entirely cloud-based and service is launching as a mobile app.
- The carrier has more than 28,000 subscribers ready for the service launch later this year.
- Dotmobile's approval by the CRTC to offer wireless services opens the gates for additional full MVNOs to launch in Canada, giving real choice to consumers who feel underserved by premium carriers like Rogers, Bell and Telus.
With some of the highest data rates in the world, the Canadian wireless industry is primed for a new low-cost mobile provider to disrupt the market. Enter dotmobile: a new provider looking to open the market for full MVNOs that can provide affordable plans benefiting most Canadians.
Unlike other Canadian mobile providers, dotmobile relies on its own core network built in the cloud to offer wireless services in Canada. We’ll tell you how it’s done, how it saves you money and what this means for the Canadian mobile industry going forward.
What is dotmobile?
Dotmobile is Canada’s first full Mobile Virtual Network Operator (MVNO) cell phone carrier. Even though WhistleOut tracks 37 wireless providers in Canada, none are fully independent of the three national networks: Bell, Rogers and Telus. Dotmobile is the first to control and operate its own core network using other carriers' towers.
WhistleOut spoke with Algis Akstinas and Alex Bauman, the original founders of dotmobile's parent company Data On Tap Inc. This "Smart Tiny Telecom" doesn’t want to compete with premium carriers. Instead, it hopes to offer a new alternative for underserved Canadians. Most Canadians don’t use more than a few gigabytes of data each month yet pay for full packages that go unconsumed. Those customers are dotmobile’s target audience. Rates will be highly competitive when compared to midrange and low-end carriers since customers only buy data as it’s needed.
The company already has over 28,000 "Founder" subscribers, even though it doesn’t yet provide wireless service. These early subscribers will receive discounted rates once dotmobile goes live. Dotmobile also hopes to build a community around consumers wanting discounts on accessories and phone insurance. The carrier is still taking new subscriptions for customers who want access to exclusive deals available in the dotmobile app.
What is an MVNO?
An MVNO is a cell phone company that doesn’t own its own cell towers. Instead, it operates on towers owned by another network. Dozens of small carriers operate as MVNOs in the United States, several of which offer talk and text plans under $10/month. You can even find plans with unlimited 5G data for less than $40/month.Canadians already see lower prices in home internet plans in part because of Virtual Network Operators (VNO). These broadband companies use existing phone lines, cable and fibre optics connected to your home and operated by major telecom companies including Rogers, Bell, Videotron or Telus.
Current MVNO Carriers in Canada
Even though dotmobile is Canada’s first full MVNO, there are many more wireless carriers that operate as virtual wireless carriers. Brands like Virgin Mobile, Fido and Koodo offer nationwide service, but they are entirely owned by Bell, Rogers and Telus (respectively). Not only do they use their parent companies’ cell towers but the core networks as well. The same is true for independent carriers like PC Mobile and Cityfone.
Regional carriers, including Freedom Mobile, Videotron and Sasktel, own cell towers in limited areas of Canada but partner with the incumbent networks to provide Canada-wide service.
How dotmobile Works
To be approved by the CRTC as a full MVNO, dotmobile built its core network in the cloud and signed a contract with network carrier Iristel for cell tower access. Start-ups often use this kind of minimum viable product (MVP) to get into the market. Since there are no cell towers to maintain, the cost of starting up and doing business is lower.
Dotmobile's cloud-core structure means all its systems are integrated and stored in the cloud, rather than within a parent-carrier company's databases. This allows dotmobile to scale and release features quickly. Another factor setting dotmobile apart from the competition is their app-based structure. Other Canadian mobile carriers have retail locations and large online platforms for plan selection and account management, while dotmobile houses all transactions within its smartphone app.
By opting for online-only transactions, dotmobile further cuts the cost of operations. There will not be any prepaid cards sold in stores, but prepaid credit cards will work just as well. Dotmobile told WhistleOut that there is a lot of innovation in the FinTech (Financial Technology) space in making online payments accessible including Apple Pay and Google Pay – both of which will be supported. The carrier plans to stick with what they know best – building a telecom network for Canadians who are underserved by existing carriers.
Dotmobile has also set up a unique plan structure, as reflected right in the company's name. The "dot" in dotmobile stands for "Data On Tap." In addition to talk and text, customers buy data as its needed instead of paying for a maximum amount of data for a full month. There are still several factors (and negotiations) that need to be sorted out before dotmobile can release data-specific pricing. However, the company plans to be a competitive option for Canadians who only use 1-3GB of data per month.
Dotmobile Plans and Pricing
There are simply two plans available at dotmobile. The Basic plan provides unlimited text messaging, while the Full plan includes unlimited talk and text anywhere in Canada or the U.S. You will be able to purchase a dotmobile wireless plan in 30-day or 365-day increments, and plans cost as little as $5/month when you pay for a full year upfront.
dotmobile Pricing
Plan | Features | 30 Days | 365 Days |
---|---|---|---|
Basic | Unlimited text messaging Data by the GB* |
$7 | $60 |
Full | Unlimited text messaging Unlimited minutes anywhere in Canada/U.S. Data by the GB* |
$14 | $120 |
* Data by the GB pricing is yet to be determined
All data is sold separately by the gigabyte and never expires. Many Canadians never use more than a few gigabytes each month, so current offerings from Bell, Rogers and Telus with loads of data often go largely unused. By offering consumers the choice to buy data as they need it, it eliminates worry about high overage charges or paying for gigs that you don’t need.
Additionally, very few Canadian carriers offer data that rolls over month to month. Yet if you find that your data use varies greatly, buying data as you need it may be the best choice. Even though the per-gigabyte price on a 20GB plan at a premium carriers is technically cheaper, you’ll never waste a single byte with dotmobile giving you more value for your money.
Dotmobile Coverage
Dotmobile’s only contract at the moment is with Iristel who offer cell service in the frosty northern regions of Canada. The company’s service area is relatively small, but dotmobile made this move primarily to reach minimum requirements to qualify as a full MVNO.
Now that it can operate as a Canadian wireless carrier, dotmobile is negotiating new agreements. Data On Tap hopes to ink contracts with nationwide networks enabling it to provide service to all Canadians. Its best chances for affordable deals lie in the hands of the CRTC.
How Fast is dotmobile?
At launch, dotmobile expects to serve customers with full 4G LTE speeds, but 5G isn’t out of the question. It’s also expected to launch with premium HD voice features like VoLTE and Wi-Fi calling.
Everything dotmobile is building—from the software that connects cell towers to the app on your phone—will operate in the cloud, allowing the core network to scale up to 5G and beyond. It also reduces overall costs enabling them to charge lower rates than wireless providers that still support older technology. It’s the smart, tiny telecom versus the old, large telephone corporations.
How to Sign Up to dotmobile
At this time, dotmobile isn’t providing wireless service to the public. Once it goes live, customers will subscribe, manage plans and buy data through the online app. The door has closed on accepting new "Founding Members" who receive a lifetime Full plan subscription, but Canadians who subscribe now will still get access to special pre-launch promotions coming in the following months.
Dotmobile SIM and eSIM Cards
The opportunity for a free lifetime plan has passed, but Canadians can get their hands on a free SIM card for a limited time. SIM cards are required for your phone to connect to any cell phone network and usually cost $10-$20. However, dotmobile members can order a SIM card through the app. There's no payment necessary. Just enter your address, punch FREESIM into the promo code field, and you'll be one of the first Canadians on a full MVNO when it launches.
Depending on what kind of cell phone you have, a physical SIM card may not be necessary. In addition to making cell phone plans more affordable for Canadians, dotmobile wants to make the process easier on the environment. At launch, the service will support eSIM (embedded SIM) cards built into many current smartphones like the Apple iPhone, Samsung Galaxy and more.
Even smartphones that need a physical SIM card will still get a product unique in the Canadian market: while most carriers use plastic, dotmobile SIM cards will use recycled and biodegradable materials.
What Phones Work with dotmobile?
If you have a phone you love, bring it with you. Most phones sold in Canada today should work on the dotmobile network, but you’ll have to check first. There’s no way to test your device for compatibility now, but there should be a compatibility checker in the dotmobile app once the network goes live. You may have to unlock your phone before using it on the dotmobile network, but that’s a free service offered by your existing carrier—even if you haven’t finish paying off your device!
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