The opinions expressed in this editorial are those of the author and do not necessarily reflect those of Decima Reports. Since Microcell Telecommunications Inc. and Sprint Canada announced their co-marketing agreement last month, financial analysts have been coy with their opinions as to the potential benefits of the deal. Several analysts began covering Microcell again after it emerged from bankruptcy protection in May, but there has yet to be any proclamations that this is either a good deal or won’t make much difference at all towards the success of the reborn wireless operator. What seems to have been lost on some is that Microcell will save substantial sums of money in acquiring customers through the co-marketing agreement. Customers acquired through the Microcell/Sprint arrangement won’t cost nearly as much as those acquired traditionally because Sprint will undertake all the marketing activities. During the June 19 conference call announcing the agreement, Microcell Solutions president and CEO Alain Rhéaume said that the company would not be reducing its current level of $100 per subscriber on marketing. So this means that the company’s marketing budget can be stretched that much farther and its overall customer acquisition costs will be reduced. Microcell’s cost of acquiring a customer is already reported to be the lowest of all national wireless operators, so a reduction to even lower levels should be applauded by analysts, particularly those who have postulated in the past that Microcell, even without its $2-billion debt, wouldn’t be able to bring in enough money to cover expenses. To cut the analysts some slack, specific financial details of the agreement have yet to be announced and won’t likely become public until this fall. But Rhéaume said in the conference call that the Fido brand would be splattered all over the estimated 50 million pieces of promotional material that will be hitting the Canadian public in the coming months as the marketing program kicks into high gear. There may still be doubts about Microcell’s survival given its strategy of continuing to focus on the mass market, but industry analysts and observers should at least give the company and its management team their due. Without a familial connection to a landline carrier, André Tremblay and his team at Microcell went out and found a good partner.