Company believes they will capture those customers with their own offering
OTTAWA — The Competition Tribunal heard evidence today that while Quebecor subsidiary Videotron had the opportunity to purchase Shaw Mobile along with Freedom Mobile, they turned it down because they believe they will be able to capture those customers on their own.
Jean-François Lescadres, Videotron’s vice-president of finances answered questions today before the tribunal, which is currently hearing evidence on an application made by the Commissioner of Competition to block the proposed merger of Rogers Communications and Shaw Communications.
Because of concerns about the impact of the deal on competition in Canada’s wireless market, a remedy was proposed that would see Videotron purchase Shaw’s Freedom Mobile. Shaw Mobile, however, is still set to go to Rogers.
Lescadres indicated Videotron believes their own offering will enable them to capture those same customers with an offer “way lower than what they’re paying right now.”
“… we think that the best business strategy for us is to forego the Shaw Mobile customers and come with our own bundle offers that are going to come at a significant price — between 10 and 30% — lower than what currently customers are paying,” he said.
On the topic of 5G and the 3500 MHz spectrum Videotron acquired last year (which includes spectrum in western Canada), Lescadres said there are plans to roll it out as quickly as possible after the acquisition.
A lawyer for the Commissioner of Competition questioned Lescadres on the timing of Videotron’s spectrum purchase, suggesting Videotron only decided to purchase the 3500 MHz spectrum after the merger announcement from Rogers and Shaw, stating he did not see any document prior to the announcement disclosing they were considering bidding on 3500 MHz spectrum.
Lescadres, however, said there were discussions leading up to the decision. He also pointed out the CRTC’s MVNO (mobile virtual network operator) decision came soon after the merger announcement, which he said was a factor in Videotron’s decision to bid for spectrum.
The hearing is scheduled to resume Monday morning at 9:30 a.m. ET. Videotron CEO Pierre Karl Péladeau is among the witnesses scheduled to appear. For instructions on how to watch online, please click here.
