By Ahmad Hathout
MONTREAL – Quebecor CEO Pierre Karl Peladeau said on the company’s fourth quarter conference call Thursday that he is “not surprised” by the “little progress” the company has made on negotiating a deal to roam on the large carriers’ wireless networks, but said things may change with the new head at the CRTC.
The company’s Videotron subsidiary was denied last week an arbitration hearing with the regulator about a price for access to Bell’s wireless network, alleging Bell is stalling on negotiations. The CRTC, which asked about the status of those negotiations last month, said in its decision that there wasn’t a good faith effort to make a deal.
On Thursday, Peladeau said it has made a good faith effort and that the current state of negotiations for mobile virtual network operators – a limited segment of which were granted in April 2021 mandatory access to the large wireless networks – is not really different than before the April decision.
“I have to be honest. Our negotiations are difficult, to say the least, with little progress after nearly two years following the CRTC decision mandating MVNOs, despite our good faith attempts,” Peladeau said.
“That being said, we’re not surprised by the situation, having fought Bell and Telus delaying tactics on many fronts over the years,” he added.
The CRTC released the terms and conditions for wireless network access in October, which triggered mandated access negotiations.
But Peladeau expressed optimism that change is on the horizon, with new leadership at the CRTC and a new policy direction, implemented last week, from Innovation Canada that emphasizes competition in “all forms.”
“With new leadership at the CRTC, however, we expect a quick resolution in-line with the repeated public statements from the minister of industry, who have been very clear that he wants and intends to achieve real competition in telecom markets in Canada,” Peladeau said.
Within the space of consecutive months starting in December, the make-up of the CRTC leadership changed. In December, Heritage appointed a competition lawyer in Vicky Eatrides as head, Innovation Canada’s Adam Scott as vice chair of telecommunications, former TekSavvy chief legal officer Bram Abramson as Ontario commissioner, and is currently searching for Quebec commissioner after Alicia Barin was elevated to permanent vice chair of broadcasting.
Peladeau also said the company is eager to finalize the purchase of Freedom from Shaw, which would trigger the acquisition of Shaw by Rogers. He said “plans are drawn,” and while it’s too early to talk about new Freedom leadership, there was a meeting with Freedom’s senior management on Tuesday where parties were “very positive in the upcoming weeks and months.” The parties involved in the transactions pushed back Friday their closing date to March 31, after Innovation Minister Francois-Philippe Champagne said earlier in the week that he is not near a decision.
The chief noted that the company is committed to lowering prices in new markets and that it has been preparing for a roll out with spectrum acquisitions in Manitoba from ISED’s residual auction process.
In the three months that ended December 31, revenues were up 0.1 percent to $1.19 billion, net income was up $8.3 million to $596.7 million, and earnings before interest, taxes, depreciation and amortization was down 3.2 percent to $483 million in the quarter.
Compared to the same period last year, revenues in telecommunications was down by $17 million to $3.72 billion and the media segment was down nearly $21 million to $755 million.
In the quarter, the company saw a net increase of 24,600 new subscribers in its operating segments, including an increase of 0.8 percent or 13,100 in mobile wireless subscribers; 0.1 percent increase or 1,300 new internet additions; and a 6.7 percent increase or 34,900 in new internet-based video services.
