By Greg O’Brien
MONTREAL and OXFORD, N.S. – Should the Competition Bureau decide Freedom Mobile must be sold as a condition of Rogers Communications being able to purchase Shaw Communications, count Eastlink founder John Bragg and Quebecor Inc. CEO Pierre Karl Péladeau as interested.
During his company’s first quarter conference call with financial analysts today, Péladeau said the Commission’s new wireless policies, coupled with the potential for Freedom Mobile coming on the market, could mean conditions are right for the company to move beyond its home province.
“We’re pleased with the CRTC decision allowing facilities-based MVNOs, as it confirms the importance of maintaining healthy competition in all regions of Canada through strong, well-funded, and viable fourth wireless competitor, which invariably leads to lower prices for consumers as we ourselves clearly demonstrated in Quebec,” Péladeau said today.
“Speaking of strong four players, it is imperative the Competition Bureau and other regulatory authorities act sensibly and consistently with respect to the recently announced acquisition of Shaw by Rogers to ensure that the important competitive role played by Freedom wireless in Ontario and the western provinces continues, through the sale of these assets to an experienced and proven operator who will ensure the long term viability and success of a fourth competitor in these key markets so that prices can continue to come down for Canadian consumers.”
The Quebecor CEO emphasized how wireless prices in regions with a strong fourth wireless competitor have come down but if Rogers is allowed all of Shaw, including Freedom, “this trend will completely disappear.”
Also during the call, Péladeau reminded listeners he wanted to go national earlier with Videotron wireless, but spectrum prices got too steep during earlier auctions. “We were looking to have a national brand,” he said.
If Freedom ends up for sale, “we will be ready to consider and negotiate what would be a fair price for this asset. We will probably not be alone… but we certainly have the expertise to run a wireless operator and the capacity of doing so successfully,” he said.
As for Eastlink founder John Bragg, he gives few interviews, but this week he was a featured on east coast business magazine Huddle. During the podcast, Bragg was asked what he thought of the proposed purchase of Shaw by Rogers and if any assets spun off would appeal to him.
“We’d be interested,” he said, adding “we’re not holding our breath on any of that.”
As for the CRTC’s wireless policies, Bragg sounded pleased, but cautious. “We think the decision is positive, but at the same time we also think it’s going to take some time to implement it… (the Commission) also said the price that the large companies charge for (access) will be negotiated, so it wouldn’t surprise me if we’re still negotiating four years from now.”
