TELUS: The Public Mobile Brand Acquisition Decision
TELUS Communications (TELUS) acquired Public Mobile Holdings Inc., a small, money-losing, wireless carrier that operated in the lower, price-sensitive tier of the market. TELUS had not previously competed in the lower tier of the market, which had a history of low revenues per customer and low customer retention. The director of Mobility Marketing at TELUS faced the decision of what to do with this newly acquired brand. He was considering the market positioning options, brand portfolio implications, and financial impact of his decision. The options included migrating the new customers to one of the company's existing brands, continuing to operate the firm as an independent brand, or repositioning the brand to improve profitability.