Chatr, as the brand will be called, will be launched later this summer, and will be available without term contracts in dense urban areas, Rogers, Canada's biggest wireless company said.
We've been watching this niche but growing category closely and it's clear that some Canadians want to use their handsets for voice and text only but want a network they can trust, said John Boynton, Rogers' executive vice president and chief marketing officer.
Small companies such as Wind Mobile and Public Mobile, armed with products aimed at budget-conscious individuals, have had some success at stealing customers from the big incumbents, Rogers, BCE Inc's Bell Canada and Telus Corp.
Cannibalization of Rogers' existing brands, including its existing low-price brand Fido, is likely to be very small, BMO analyst Tim Casey said in a note to clients.
(Reporting by Nicole Mordant; editing by Peter Galloway)