Monday, December 11, 2006
Quebecor signals cellular ambitions

Pierre Karl Peladeau said:
we encourage the Government to follow its own logic by proceeding with the deregulation of the entire cable and broadcasting sectors as quickly as possible because, in our opinion, this could permit consumers to benefit from reduced cable bills.The issue of regulatory symmetry for cable companies and telcos is familiar. At last June's Canadian Telecom Summit, Robert Depatie spoke of the complex regulations that apply to the cable industry.
Quebecor Media also appears to be asking for the Government to put in place incentives for new entrants to offer mobile services. It says that it wants the phone companies to use their wide profit cellular margins to offer Canadians the latest technology and to lower prices for mobile wireless services.
Presently Canadians pay 60% more than Americans for mobile telephone service and do not have access to the same advanced technology available everywhere else in the world. This is unacceptable and can only be explained by the existence of a Canadian oligopoly that controls this business sector.Once again, Videotron is proving that it is prepared to be a disruptive force in the converged telecom sector.
Robert Depatie, the president and CEO of Videotron, will be speaking at The Canadian Telecom Summit in June.
Technorati Tags:
Videotron, Maxime Bernier, Pierre Karl Peladeau, local forbearance, TPR
Comments:
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While it's nice Peladeau wants to see his own oligopoly power unleashed, it's more than a little bit disingenuous for him to hold out further cable deregulation as somehow a remedy to the woes we are having in the almost totally-deregulated wireless industry.
The two have nothing to do with one another. If he wants to get into wireless, there's nothing to stop him from building out tomorrow, and there are almost no regulations restraining whatever he does in the market once he enters it.
The two have nothing to do with one another. If he wants to get into wireless, there's nothing to stop him from building out tomorrow, and there are almost no regulations restraining whatever he does in the market once he enters it.
Three cheers for Quebecor Media and Mr. Peladeau on the comments about the Canadian cellular market for calling a spade a spade. The higher rates paid by Canadian cellular customers and the lacklustre level of advanced services and technology in the marketplace have been noted by many informed observers over the years since there has been only three facilities based cellular providers. As Mr. Peladeau rightfully points out, these facts clearly point out that the Canadian cellular market is an oligopoly. It is not competitive. The federal government should do whatever is necessary to ensure a fourth player is in place as soon as possible.
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