The head of cellphone provider Mobilicity says Rogers is trying to destroy new competition with the launch of its discount- and urban-focused Chatr brand.

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Mobilicity chair John Bitove says his company will pursue legal action under the Competition Act if Rogers launches the new discount service as announced.

He told the CBC's Lang and O'Leary Exchange that the company will pursue every legal means to ensure there's a true level playing field. 

"It's right in the Competition Act," he said. "You can't create flanker brands to try and defeat the competition."

"We welcome competition, but it's the way they're competing that we object to…. Rogers now wants to operate not anywhere, but just in the markets we operate," he said, noting that Chatr will only launch in the five cities where Mobilicity offers services.

Marketed towards discount consumers in urban centres, Chatr will be Rogers Communications Inc.'s third wireless brand, after Rogers Wireless and Fido.

Bitove said the timing of Chatr's launch is no coincidence and he alleges that Canada's largest wireless service is trying to "destroy the little guy."