MONTREAL - Although there's already talk that some of Canada's new wireless networks could be quickly swallowed up or merge with each other, Public Mobile chief executive Alek Krstajic said Friday he's intent on bringing an independent new player to market by the end of this year.

"I want to deliver for Canadians what we said we're doing to deliver, which is affordable wireless communications," Krstajic said from Toronto, where Public Mobile has its headquarters.

He said he's targeting people who shop at "no frills grocery stores" and live paycheque-to-paycheque, as well as students who will want an unlimited talk and text plan for about $40 a month.

As a regional wireless carrier in Ontario and Quebec, Public Mobile's network would be able to reach to nearly 19 million Canadians in the country's most heavily populated provinces.

Public Mobile is one of several news players in Canada's cellphone industry, currently dominated by Rogers (TSX:RCI.B), BCE Inc.'s Bell Mobility (TSX:BCE) and Telus (TSX:T).

Other new players in the domestic cellphone industry include Toronto-based Globalive, best-known to Canadians for its Yak long-distance and Internet customers, satellite radio player John Bitove's DAVE ( Data & Audio-Visual Enterprises) Wireless Inc., and Quebecor Inc. (TSX:QBR.B) known for its cable TV service.

But given the slowing growth in wireless subscriptions, tight capital markets and the telecom industry's tendency to ultimately support only two or three wireless carriers in any geographic market, some question how long Canada will sustain so many rivals.

"We believe the trigger for partnerships or combinations will be if and when funding issues arise," UBS analyst Jeffrey Fan wrote recently. "This may not be evident until mid-2010 as they will each carry out their plans in the meantime."

Public Mobile expects to launch in Toronto and Montreal by the end of the year and Krstajic said getting a head start on the competition will put his company in a "sustainable" position to survive.

The domestic cellphone industry was opened to increased competition after a federal auction for spectrum, radio waves over which cellphone networks operate, raising more than $4 billion for the federal government last year.

But UBS Securities has said consolidation of Globalive, Public Mobile and DAVE would allow them to "leverage each other's best skill sets."

Krstajic said Public Mobile's federal licence can be sold to Rogers, Bell or Telus, but the company has not plans to do so.

"That's an advantage to us. Never say never, but I do not see that happening now that we're fully funded," he said, adding he has hired 25 of 100 employees.

Telecom analyst Mark Goldberg said Public Mobile's strategy trying to get cellphone-less Canadians into the wireless market does have its challenges.

"It's an interesting strategy if he can find the magical offer to go after them," said Goldberg of Toronto-area Mark Goldberg and Associates Inc.

"There's certainly a segment that hasn't yet seen the value of getting a mobile phone."

Goldberg said Public Mobile won't need a "huge percentage" of these Canadians but they could be outside Toronto and Montreal and that could reduce the number of available customers.

The private equity arm of the Ontario Municipal Employees Retirement System has announced it will invest $50 million in the company, becoming one of Public Mobile's largest financial backers.

Public Mobile's partners also include Americans Columbia Capital and M/C Venture Partners that have developed a number of medium wireless carriers in the United States, such as Metro PCS and Leap.