MONTREAL, July 18,
2022 /CNW/ - In response to the opinion piece by
Keldon Bester and Ben Klass about the proposed Rogers-Shaw merger,
published in the Globe and Mail on July
12, Pierre Karl Péladeau, President and CEO of Quebecor,
made the following statement to correct certain inaccuracies:
"In their letter, Keldon Bester
and Ben Klass have omitted key
facts. They are certainly entitled to question this merger between
two of Canada's most successful
entrepreneurial families, but we take issue with their baseless
argument that competition would be enhanced by nixing the deal,
especially as it contains a series of inaccurate statements.
Inaccurate statement 1: Quebecor's
current pricing is objectively worse than Freedom
You must compare apples to apples. Had Bester and Klass looked a
bit closer, they would have seen that the mobile plans they're
comparing have very different coverage areas and data caps,
particularly when it comes to domestic roaming. It is important to
note that Freedom Mobile's plans include very limited roaming,
compared to no restrictions for Videotron customers, and that
Freedom customers have no access to 5G. In fact, adjusting for the
excessively high cost of an average national roaming package,
Freedom's plans are much more expensive than Quebecor's.
Where in Canada have wireless
prices come down most sharply over the past ten years? And where in
Canada are wireless prices the
lowest today? Klass answered these questions himself in a recent
Canadian Media Concentration Research Project report*: "Videotron's
market share in its home territory continues to rise, and currently
stands as the best benchmark we have for the type of competition
that could emerge over time in the other provinces. Indeed,
although it initially shied away from an attempt to expand into
other provinces, Videotron is again signaling that the time may be
right to bring its wireless services to citizens of the rest of
Canada. Slower progress has been
made by Shaw's Freedom Mobile brand in BC, Alberta, and Ontario."
Inaccurate statement 2: Quebecor
wouldn't be able to attract customers with bundled discounts in
B.C., Alberta and Ontario
Quebecor plans to offer consumers in British Columbia, Alberta and Ontario discounted multiservice bundles and
innovative products, including both mobile and Internet, at even
more competitive prices. We can bundle, and we will, on better
terms than what anyone else, including Shaw Mobile, is offering
today. We are even strongly considering offering telecom services
in Manitoba, where Internet prices
are amongst the highest in Canada.
Bester and Klass should also be aware that the telecommunications
landscape, including public policy and regulatory decisions, has
changed considerably in Canada in
recent years, making it more sustainable for new market entrants to
invest and compete with the Big 3.
If Bester and Klass don't think Quebecor can disrupt the market
in Ontario and Western Canada, they might want to consider
what has happened in Abitibi-Témiscamingue, a vast northern region
of Quebec that until recently was
served solely and exclusively by a Bell subsidiary. Videotron
entered the market less than 2 years ago and has already taken a
34% wireline market share and slashed consumers' bills by 35%,
without owning its wireline network. This is a striking example of
the impact that an agile new player with a proven track record can
have if its goal is to disrupt the market and bring prices
down.
Inaccurate statement 3: Allowing
Quebecor to take over Freedom would leave consumers in the wireless
markets of those three provinces worse off than if Shaw were to
continue operating independently
We'll leave the answer to Klass himself, in his submission to
the CRTC** in May 2019: "If lower
prices are an indication of the strength of regional
competitors, then the data…lead us to conclude
that competition from Freedom in Ontario and British Columbia…remains
marginal. It is clear that Freedom's low pricing relative to
the national carriers has not had a major impact on the nationals'
main brand pricing—which remains set at more than twice the price
of Freedom's plans—and similarly, the competitive pressure exerted
by Eastlink in the Maritimes and Atlantic provinces has been less
than that of Videotron in Quebec
or Sasktel in Saskatchewan."
We believe this statement is even more valid today. Considering
the diminished competitive intensity from Freedom in the last 16
months and its lack of 3500 MHz spectrum which is essential to 5G
networks, how could Freedom be in a better position to compete on
its own than coupled with Quebecor, whose track record in mobility
has been unassailable for the last 15 years?
Quebecor has shown that it is the best player to create real
competition and bring down prices, having done just that in
Quebec, the first market in
Canada where the Big 3 were forced
to lower their prices to stay competitive. Will Quebecor be able to
repeat its success in Ontario and
Western Canada? In a simple word:
yes."
*Media and Internet Concentration in Canada, 1984–2020
**Telecom Notice of Consultation CRTC 2019-57
About Quebecor
Quebecor, a Canadian leader in telecommunications,
entertainment, news media and culture, is one of the
best-performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high-quality, multiplatform,
convergent products and services.
Québec-based Quebecor (TSX: QBR.A, QBR.B) employs nearly 10,000
people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports more
than 400 organizations in the vital fields of culture, health,
education, the environment and entrepreneurship.
Visit our website: www.quebecor.com
Follow us on Twitter: twitter.com/Quebecor
SOURCE Québecor Média inc.