Competition in Canada’s wireless network took another twist this morning with the launch of Rogers’ flanker brand dubbed Chatr and a confirmation that Mobilicity intends to make good on its threat to take the wireless giant to court.

“It is clear this brand was designed to solely go after the new entrants and drive them out of the market,” said Stewart Lyons, chief operating officer, Mobilicity.

Lyons said Mobilicity lawyers are preparing to launch legal proceedings against Rogers and intend to file a complaint to Canada’s Competition Tribunal.

Launched Wednesday, Chatr offers unlimited talk for $35 and unlimited talk and text for $45 within Toronto, Vancouver, Calgary, Edmonton, Ottawa and eventually Montreal.

“This is directly positioned at customers looking for the cost certainty that you get with an unlimited plan, but with Chatr you get it with a network you can trust so you get fewer dropped calls than the other new entrants,” said Garrick Tiplady, senior vice president, Chatr.

Tiplady did not identify a target demographic for Chatr. When asked about additional offerings, like a data plan, Tiplady said at this point they are focused only on unlimited talk and text.

“Obviously as consumer needs change we will continue to look at where we need to be,” he said. “We believe in this market.”

Mobilicity maintains that Chatr too closely resembles the low-cost, urban-focused offerings from new entrants, including Public Mobile and WIND Mobile, and Rogers is violating a section of the Competition Act that prohibits the introduction of temporary offerings designed to reduce or lessen competition. Lyons said they are also exploring “various regulatory avenues” with Industry Canada and the Canadian Radio-television and Telecommunications Commission (CRTC).

Alan Middleton, a marketing professor at York University’s Schulich School of Business, said based strictly on what should be free market principles Mobilicity shouldn’t have a case.

“What giants do is try to maximize the different markets they compete in,” said Middleton. “This is not predatory, unfair stuff where they are picking on the little guy.”

Wireless carriers should be able compete on their own merits, said Chris Diceman, senior vice president, communications and media, DBRS Ltd., bond-rating agency.

“I don’t think any one player should have exclusive rights for a certain kind of strategy; it is a competitive market,” he said, adding the timing of the launch ties into the push for low-cost offerings for the back-to-school market.

“What Rogers is doing is focusing on market segmentation and really trying to drive growth in the market going forward,” as they help to take penetration rates up from current levels, he said.

The Chatr launch produced a bit of a celebratory spectacle from WIND executives.

“We welcome it, we expected the market to heat up and I think what we are seeing is the most competitive market in the last ten years,” said chief executive officer Ken Campbell, who spent part of the day at an event where customers were sold $1 hotdogs near a Rogers store at Yonge-Dundas Square.

The pair also promoted a $150 porting credit, or financial incentive, for switching to WIND.

Campbell said Chatr is a bit of an “experiment” given the increasing focus on smartphones and said WIND’s focus on affordable unlimited data plans puts them in a strong position to compete.

“They will, of course, adapt their propositions over time and we will adapt,” Campbell said.

In an emailed statement, Alek Krstajic, CEO of Public Mobile, also welcomed competition, but said Rogers runs the risk of failing some of its customers by trying to manage three brands. He also encouraged all Rogers customers to call and ask for Chatr rates.

“Public Mobile has a very specific demographic. We have low costs due to the price we paid for our spectrum and we pass those savings on to our customers,” Krstajic said.