Tag: Québécor

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Mobile Syrup

Freedom Mobile is now a Québecor brand

Québecor subsidiary Vidéotron has completed the acquisition of Freedom Mobile from Shaw under the company’s move to merge with Rogers.

Through Vidéotron and Freedom, Québecor has more than 3.5 million mobile services customers, a press release from the company states.

“The alliance of Freedom and Vidéotron will permanently transform Canada’s wireless market for the benefit of consumers and create a new competitive environment that delivers innovative products and services at better prices,” Pierre Karl Péladeau, president and CEO of Québecor, said.

The move also solidifies a settlement between Vidéotron and Rogers. In October 2021, Vidéotron filed to sue Rogers for $850 million relating to an alleged breach surrounding a network-sharing deal. Vidéotron didn’t provide specifics but did say the two companies are working together to continue with the agreement.

Freedom’s ownership switch has been completed just days after Innovation Minister François-Philippe Champagne approved Rogers’ $26-billion takeover of Shaw. The companies agreed to sell Freedom to Vidéotron in a $2.85 billion agreement.

Champagne granted approval after Québecor agreed to a number of conditions, including providing plan options that are 20 percent cheaper than the main competitors, Bell, Telus, and Rogers.

Source: Vidéotron

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Mobile Syrup

Québecor CEO says company is ready to expand wireless services to Canadians

Montreal, QC, Canada – September 4, 2021: Quebecor headquarters in Montreal, QC, Canada. Quebecor Inc. is a Canadian diversified media and telecommunications company.

Québecor is ready to expand its mobile services outside of Quebec.

Company CEO Pierre Karl Péladeau expressed the sentiment during a conference call Thursday following the release of the company’s fourth quarter 2022 financial results.

“Our plans are drawn and we are ready to go, ready to create real, lasting competitive dynamics in Ontario and Western Canada,” Péladeau told analysts. “This project represents a springboard to a new era (of goals) for Quebecor.”

The company runs Fizz Mobile, a digital wireless provider, under subsidiary Vidéotron. The company is also hoping to acquire Freedom Mobile under a $2.85-billion deal with Shaw and Rogers. It’s unclear if Freedom and Fizz will merge in any way if the company is successful in its acquisition attempts.

Innovation Minister François-Philippe Champagne must provide Québecor, Rogers, and Shaw with approval before the move can be finalized. The side deal is cardinal to Rogers’ $26-billion takeover of Shaw.

Champagne previously stated his conditions for approval include Vidéotron keeping the wireless licenses it acquires for 10 years and dropping wireless bills for Ontario and Western Canada residents by 20 percent.

“As ISED reviews the transaction, we reiterate our determination to attack Canada’s telecommunications oligopoly and our commitment to creating a competitive landscape that will lower the relatively high prices Canadians are still paying, as we have been doing in Québec for more than 12 years,” Péladeau said in a press release detailing the financial results.

Québecor made $1.19 billion in revenue in Q4 2022, a 0.1 percent increase year-over-year.

Image credit: Shutterstock 

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Mobile Syrup

Rogers, Shaw and Québecor extend mergers to March 31

Nearly two years after Rogers announced plans to acquire Shaw in a $26-billion transaction, the two companies are still waiting for regulatory approval.

The companies, alongside Québecor, have extended their self-imposed deadline once again to March 31st. They previously moved the deadline to February 17th from January 31st in hopes of gaining approval from Industry Minister François-Philippe Champagne.

“All parties remain committed to the pro-competitive transactions, and continue to work with Innovation, Science and Economic Development Canada (ISED),” the three companies said in a joint statement.

The Minister is tasked with approving plans for Québecor subsidiary Vidéotron to acquire Shaw’s wireless licenses through Freedom Mobile, which is needed for the larger merger to go through.

The Minister has repeatedly stated that a decision will come when it’s ready, and he’s not bound to a deadline.

Source: Rogers

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Mobile Syrup

Rogers and Québecor reportedly discussing domestic roaming costs: Globe and Mail

Rogers and Québecor are reportedly discussing options to reduce how much Freedom Mobile customers are charged when they roam on Rogers’ network.

According to the Globe and Mail, the organizations hope the move will win approval from Innovation Minister François-Philippe Champagne to create a fourth leading wireless carrier under a $2.85-billion deal.

The Minister is responsible for approving the transfer of Shaw’s wireless licenses to Québecor subsidiary Vidéotron. But the Minister previously said he’s in no hurry to approve the merger. He wants the two telecom companies to firmly commit to “maintain affordable and accessible wireless service,” the Globe previously reported.

A source told the publication Rogers and Vidéotron are discussing several “commercial issues,” such as domestic roaming rates, to meet conditions from the government. The publication reports lower prices for domestic roaming rates will help Vidéotron reduce the cost of wireless plans.

Image credit: Shutterstock 

Source: Globe and Mail 

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Mobile Syrup

Minister Champagne wants Rogers, Québecor to commit to wireless affordability: Globe and Mail

Canada’s Minister of Innovation, Science and Industry is reportedly looking for a series of “firm commitments” from Rogers and Québecor about wireless affordability.

According to The Globe and Mail, François-Philippe Champagne wants the two companies to put into writing that they’ll “maintain affordable and accessible wireless service,” and failures to do so will lead to consequences.

Rogers is acquiring Shaw under a $26 billion transaction. Québecor subsidiary Vidéotron is purchasing Shaw’s wireless licences under Freedom Mobile as part of the deal.

The mergers have passed through other approval obstacles, and Minister Champagne is the last to sign off. His conditions for approval include Vidéotron keeping the acquired licenses for 10 years and the company dropping wireless bills by 20 percent in Ontario and Western Canada.

However, Minister Champagne previously stated that he’s in no hurry to provide approval. 

The three companies expanded their deadline to conclude the transactions from January 31st to February 17th as they wait for approval.

Image credit: @fp_champagne

Source: Globe and Mail 

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Mobile Syrup

Here’s what’s next in the Rogers and Shaw saga

Rogers’ first round of approval for its $26 billion merger with Shaw received little pushback.

The Canadian Radio-television and Telecommunications Commission (CRTC) held a hearing to discuss the broadcast aspects of the merger in November 2021, providing its approval, with conditions, in March 2022.

The companies also need approval from Innovation and Science and Economic Development Canada (ISED) and the Competition Bureau. That hasn’t been as straightforward.

The Competition Bureau has been a strong voice of opposition, stating the merger will lead to higher wireless bills, among other issues, for Canadians. The sale of Shaw-owned Freedom Mobile to Québecor subsidiary Vidéotron for $2.85 billion did little to appease concerns.

Representatives from the bureau wrapped up a four-week tribunal hearing with lawyers from Rogers, Shaw, and Québecor earlier this month. The bureau argued the tribunal should block the deal in its entirety.

Chief Justice Crampton led a three-member panel that originally hoped to share a decision by Christmas. The tribunal will provide a 24-48 hour notice before issuing the decision.

Rogers and Shaw are on a tight deadline to close the deal by the end of the year. However, they have the option to extend it to January 31st. Anything past that date will see Rogers paying millions to bondholders.

But even if Crampton delivers a win for Rogers and Shaw, the companies will have weeks to get approval from ISED to make their deadline. Industry Minister Francois-Philippe Champagne laid out several conditions that Vidéotron would need to fulfill before its takeover of Freedom Mobile is approved. Québecor’s CEO, Pierre Karl Péladeau, quickly indicated the company would accept the conditions.

Vidéotron can only acquire Freedom if Rogers’ takeover of Shaw receives full approval. It’s unclear if Champagne’s conditions for Vidéotron indicate how he’ll rule on the more significant merger. But if they are, the merger can be expected to close sooner rather than later.

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Mobile Syrup

This week in Canadian telecom: tis the season for quarterly reports [Oct. 29-Nov.4]

Several telecom companies announced results for their third-quarter earnings for 2022. While heavily focused on numbers, other issues were also addressed, including the merger of Rogers and Shaw.

Here’s almost everything that happened in Canadian telecom this week.

Business

The Canadian Radio-television and Telecommunications Commission (CRTC) hosted a meeting with international counterparts to discuss methods to combat scams. Representatives from Australia, Ireland, Hong Kong, and the U.S. were present at the meeting.

Telus has expanded its Mobility for Good program to include Indigenous women surviving or at risk of violence in Ontario. The program provides free smartphones and wireless services. Originally launched in 2021, the program has helped almost 1,000 people so far in Alberta and B.C.

Tesla has applied for a Basic International Telecommunications Service (BITS) licence with the CRTC. The company needs the license to provide various services in its vehicles, including infotainment and internet access.

The hearing between Rogers, Shaw and the Competition Bureau will begin next week. In an attempt to streamline the process, Chief Justice Crampton, who will oversee the hearing, asked the two sides to reach a compromise. The request led to a barrage of statements from each side, neither of them willing to make good on Crampton’s request.

In a report outlining its Q3 earnings for the year, Bell said its growth in the broadband sector set a new record. The company added 400,000 new activations across its wireless and wireline networks, representing a 50 percent increase year-over-year. The company reported over $6 billion in revenue.

Québecor also released its Q3 results this week. It saw minimal growth, with mobile customers increasing by two percent and internet customers increasing by three percent. The company reported overall revenue of $1.14 billion, which was a slight decrease year-over-year. Québecor will be one of the many companies listening closely to the anticipated hearing with the Competition Tribunal, especially given its subsidiary Vidétron is in line to acquire Freedom Mobile from Shaw.

For Telus’ Q3 earnings report, the company outlines it added 150,000 new mobile customers, setting a record of its own as it hadn’t seen similar growth since 2010. The company reports $4.7 billion in overall revenue, with $108 million coming from its mobile network.

Government

The federal government announced it will be investing nearly $16 million in EXFO to advance 5G telecommunications. EXFO develops and monitors various solutions for the telecom industry. The funding will go towards the 5G Center of Excellence in Montreal and create 50 jobs.

Deals

Bell is offering a $10 monthly discount on plans for 12 months if you bring in your own device. More details are available here.

Public Mobile will give 12GB of bonus data on all of its 4G plans. The best part is that the offer isn’t only available to new users, but existing customers as well.

Chatr is offering customers 10GB of bonus data for 12 months on some of its plans.

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Mobile Syrup

Québecor’s CEO hopeful of hearing outcome with Competition Tribunal

Montreal, QC, Canada – September 4, 2021: Quebecor headquarters in Montreal, QC, Canada. Quebecor Inc. is a Canadian diversified media and telecommunications company.

Québecor’s CEO has full faith in the upcoming hearing between Rogers, Shaw, and the Competition Bureau.

“We believe that the upcoming Competition Tribunal hearing will demonstrate clearly that the acquisition of Freedom by Québecor will bring to the rest of Canada some healthy competition and lower prices that have been the norm in Quebec for many years,” Pierre Karl Péladeau said during a conference call discussing the company’s Q3 results. 

The hearing, set to begin next week, will examine the Competition Bureau’s application to block Rogers’ $26 billion takeover of Shaw. The bureau has argued the deal will reduce competition in Canada’s wireless sector, leading to higher bills, among other issues for Canadians.

Rogers and Shaw agreed to sell Freedom Mobile to Québecor subsidiary Vidéotron to appease worries. Freedom’s sale is contingent on the larger deal. However, the Competition Bureau says it will accept nothing other than a full blocking of the Rogers and Shaw merger. 

Approval from the Competition Bureau is just one avenue of approval the companies need for the Rogers-Shaw merger. Approval from the Canadian Radio-television and Telecommunications Commission (CRTC) came earlier this year. Conditional approval from Innovation Minister François–Philippe Champagne came last month when he laid out conditions for Vidéotron’s acquisition of Freedom Mobile.

The conditions include Vidéotron keeping the attained licenses for 10 years and offering wireless prices that are comparable to Quebec.

Assuming all approval is achieved, Péladeau signalled the company will be able to start operating quickly. “Despite the fact that the transaction is not approved, we have a pretty good idea about how the networks work [and] what kind of technology Shaw/Freedom is using. We obviously have a good relationship with wireless equipment suppliers.” 

The company further reported it increased its mobile customer by 2 percent and its internet customer by 3 percent in its third quarter.

Over half of its internet customers were VMedia customers that Québecor inherited after it acquired the company earlier this year. 

Image credit: Shutterstock

Source: Québecor

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Mobile Syrup

Tony Staffieri confident Rogers-Shaw merger will close

The Rogers-Shaw merger has faced several roadblocks, but Rogers CEO Tony Staffieri’s confidence isn’t wavering.

In an interview with The Globe and Mail, Staffieri is “confident the deal will close” despite the Competition Bureau’s work to block it. The bureau originally filed its application in May, stating the merger will lead to higher cellphone bills for Canadians, among other issues.

In order to sway the bureau, Rogers stated it will sell Freedom Mobile, Shaw’s wireless business, to Quebecor to increase competition. “Quebecor will have a better cost structure than they would have had on their own,” Staffieri said.

However, the Competition Commissioner doesn’t agree with that logic. Documents filed by the commissioner in September label the transaction as anti-competitive.

“The sale of Freedom “fails to eliminate the substantial lessening and prevention of competition the proposed transaction will cause,” the document states.

Mediations will begin this week. If talks fail, as they previously have, a hearing will be held next month.

Source: The Globe and Mail

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Mobile Syrup

Rogers, Shaw, Quebecor sign definitive agreement for Freedom sale

In a news release published the morning of August 12th, Rogers, Shaw, and Quebecor said they had signed a definitive agreement for the sale of Freedom Mobile.

According to the companies, the agreement is “substantially consistent” with the terms previously announced in June. The deal will see Shaw and Rogers sell Freedom Mobile to Quebecor subsidiary Vidéotron for $2.85 billion, conditional on regulatory approval of the Rogers-Shaw merger.

In the release, the three companies said they “strongly believe” selling Freedom will provide ” the best opportunity to create a strong fourth national wireless services provider and addresses the concerns raised by the Commissioner of Competition and the Minister of Innovation, Science and Industry, [François-Philippe Champagne,]” over the Rogers-Shaw merger.

Additionally, the release reiterated Quebecor’s past commitement to leverage the combined businesses of Vidéotron and Freedom to launch a national 5G offering with the former’s 3500MHz spectrum holdings.

Along with being conditional on the Rogers-Shaw merger, it’s worth noting that the Freedom sale would also be dependent on clearance under the Competition Act, as well as approval from Minister Champagne.

As for the Rogers-Shaw merger, it has already been approved by Shaw shareholders, the Court of Queen’s Bench of Alberta, and the Canadian Radio-television and Telecommunications Commission (CRTC). However, it remains subject to review by the Competition Tribunal and approval from Minister Champagne.

It’s worth noting that the Commissioner of Competition filed to block the merger in May, which led to the Competition Bureau, Rogers, and Shaw participating in tribunal mediation, although those mediation efforts failed in July.

However, if the Rogers-Shaw merger goes through and Vidéotron acquires Freedom Mobile, that will only resolve one of the multiple competition concerns with the merger. Along with wireless networks (which the Freedom deal would impact), there are concerns about combining Shaw’s internet and broadband services with Rogers. Those concerns have grown following the massive nationwide Rogers network outage on July 8th (dubbed ‘Red Friday’ by some).