Tag: Québécor

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Québecor lost millions in telecom revenue, Q2 report reveals

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

As Québecor continues with plans to expand its presence across Canada, current financial results show it’s losing money.

The company’s Q2 2022 results show it pulled in $1.12 billion in revenue, down $16 million (1.4 percent) from Q2 2021. Part of the decrease came from telecommunication services, where revenue shrank by 1.7 percent ($15.8 million).

Québecor also reported a decrease in revenue from media services. Profits in sports and entertainment offset the losses.

On the other hand, its subsidiary Vidéotron saw its revenue increase by 11.4 percent through mobile services and equipment.

Overall, Québecor added 34,600 connections to its mobile service this quarter, increasing this figure by 27 percent compared to the second quarter of 2021.

“In what remains a highly competitive environment, Québecor maintained its operational rigour and financial discipline in the second quarter of 2022,” Pierre Karl Péladeau, Québecor’s president and CEO, said.

The company recently acquired VMedia in a bid to expand its presence. The company will continue functioning as a whole under Québecor’s banner.

“VMedia is now one of the key partners that will help accelerate Québecor’s plan to increase competition in Canada and offer better multi-service offers, giving Canadian consumers more choices at a better price,” a Québecor spokesperson told Cartt.ca about the merger.

The company is also acquiring Freedom Mobile for $2.85 billion, which will go through if Rogers’ takeover of Shaw is approved. The Commissioner of Competition blocked the merger in May, and the matter will appear before the Competition Tribunal soon.

Image credit: Shutterstock

Source: Québecor

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Québecor acquires VMedia as it works to expand its presence across Canada

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

Québecor has acquired the independent internet and television service provider VMedia.

As first reported by Cartt.ca, Québecor has acquired all of VMedia’s shares. “The ultimate control of 2251 will be exercised by Pierre Karl Péladeau,” Québecor’s CEO, the CRTC, states on its website.

The application of approval states Québecor will be financing VMedia’s expansion, expanding Québecor’s presence across the country.

The application didn’t disclose a purchase price. As pointed out by Cartt.ca, neither company announced the deal publicly.

“[The deal] will ensure VMedia, with the support of Québecor, continues its momentum. The company has complementary innovative solutions that will be exploited to their full potential nationwide,” a Québecor spokesperson told Cartt.ca.

“VMedia is now one of the key partners that will help accelerate Québecor’s plan to increase competition in Canada and offer better multi-service offers, giving Canadian consumers more choices at a better price.”

Québecor is also set to acquire Freedom Mobile from Shaw Communications, assuming Rogers’ takeover of Shaw is successful. The company has proposed to pay $2.85 billion for the company.

Cartt.ca further reports VMedia will continue as its own company under Québecor’s banner. The company’s leaders and all its employees will continue working with the company, VMedia co-founder George Burger told the publication.

“It has been a bit of a source of frustration that we have not been able to raise the capital needed to expand our business and be able to do justice to the things we’ve built and the things we tried to achieve,” Burger said.

“With a parent like Québecor, who is dedicated to competition, it’s just a perfect opportunity to maximize the features available to us.”

Image credit: Shutterstock

Source: CRTC via Cartt.ca

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Anthony Lacavera asks regulators to block Québecor’s Freedom Mobile acquisition

Anthony Lacavera has written to regulatory bodies to reject the sale of Freedom Mobile to Québecor in his latest act of protest.

The chairman of Globalive said Rogers “consistently refused to engage” with the company and their $3.75 billion offer to buy Freedom Mobile, The Globe and Mail reports. Globalive’s offer is worth $900 million more than Québecor’s $2.85 billion purchase.

Rogers announced its decision to sell Freedom Mobile earlier this month in a bid to please regulatory bodies who said Rogers shouldn’t be allowed to take over Freedom Mobile as part of its $26 billion merger with Shaw.

Rogers will retain 450,000 customers whose wireless services come bundled with cable and internet.

“We are (and have always been) prepared to acquire Shaw Mobile and to continue to offer bundled services to its 450,000 customers,” Lacavera wrote in the letter addressed to Matthew Boswell, the Commissioner of Competition, and Minister of Innovation, Science and Economic Development François-Philippe Champagne.

Lacavera told The Globe and Mail that government intervention is needed to ensure the sale benefits Canadians and not the company’s shareholders.

Rogers “will always choose a weaker competitor over a stronger one as this is obviously the best business decision for Rogers,” he wrote.

Lacavera’s investment firm founded Freedom Mobile in 2008. Formerly known as Wind Mobile, Shaw bought the company in 2016 for $1.6 billion and rebranded it. The former founder expressed his interest in buying back the company before it was even on the market. 

The purchase is still a possibility, given the proposal to sell Freedom Mobile to Québecor needs regulatory approval. Minister Champagne said his office would focus on affordability when examining the transaction.

“What is going to be framing our decision is going to make sure that rates are more affordable [and] that we have more competition in Canada that can foster innovation for decades to come,” he said at the Collision conference in Toronto last week.

Rogers needs similar regulatory approval for its takeover of Shaw. The Canadian Radio-television and Telecommunications Commission (CRTC) is the only body to approve the merger. The Competition Bureau has sought to block it. The bureau and the two companies have agreed to a meditation process set to take place on July 4th and 5th. The Ministry of Innovation, Science and Economic Development also needs to provide approval.

Source: The Globe and Mail 

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Québecor wins the Freedom Mobile jackpot

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

Freedom Mobile has found a new home under the Québecor banner.

Rogers and Shaw struck a deal with the Montreal-based telecom giant for $2.85 billion in a bid to get their merger approved by regulatory bodies. The move cements the company as the fourth largest telecom provider in the country. Québecor’s subsidiary Vidéotron already serves the Quebec area.

“This is a turning point for the Canadian wireless market,” Pierre Karl Péladeau, Québecor’s president and CEO, said.

“[Vidéotron] is the strong fourth player who, coupled with Freedom’s solid footprint in Ontario and Western Canada, can deliver concrete benefits for all Canadians.”

Québecor is the only company Rogers and Shaw confirmed the sale of Freedom Mobile too. Numerous other buyers were on the table, including Xplornet and Globalive. Xplornet was the first company Rogers seemed to take an interest in, while Québecor appeared to be discluded from initial discussions.

The Rogers-Shaw takeover is valued at $26 billion and is under scrutiny from the Competition Bureau, which has raised concerns the merger will reduce wireless competition. Both telecom providers have asked the Competition Tribunal to dismiss the order blocking the merger. 

The sale of Freedom Mobile to Québecor is also subject to similar regulatory approval.

The Globe and Mail further reports the Freedom sale provides more benefits to Rogers than simply gaining regulatory approval. The telecom giant is poised to add 450,000 new wireless customers to its client base.

Image credit: Shutterstock

Source: Rogers, Globe and Mail

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CRTC dismisses BCE’s complaint against Vidéotron

Canada’s broadcasting and telecom watchdog has dismissed BCE’s complaint against Vidéotron’s Vrai service.

Vidéotron launched the platform featuring lifestyle and reality content in August 2021. Initially only available to Vidéotron customers, it expanded to online direct-to-consumer (DTC) service in September 2021 and was available through the internet.

BCE filed a complaint in November 2021, alleging Vidéotron violated section 12 of the exemption order for video-on-demand undertakings (HVOD). The section states exclusive programming under HVOD services must also be available through the internet. BCE also said the company violated section 9 of the Broadcasting Distribution Regulations, which deals with “undue preference and disadvantage.”

BCE argued the service costs Canadians $15 if they purchase it online (through DTC), compared to $7 if purchased through Helix, a Vidéotron subscription service. They further alleged DTC subscribers can only access content one device at a time and are automatically directed to Vidéotron’s website and promotional offers, which isn’t true for Helif customers.

“According to BCE, by implementing a lower quality offering for consumers that are not subscribed to Helix and directing them to promotional offers for their products, Vidéotron intends to maintain de facto exclusivity for its BDUs and to use the Vrai service to increase the number of subscriptions to its BDUs,” the CRTC states in its findings. “BCE argued that Vidéotron is attempting to create a competitive advantage for its own BDUs.”

Vidéotron’s parent company Québecor argued customers could access Vrai through QUB, a platform with all their content, and people don’t have to subscribe to other services to access it. Speaking about the price difference, Québecor said. “BCE is not citing any specific regulatory provision and that BCE itself offers its Crave service at various prices.”

The CRTC ultimately ruled in Vidéotron’s favour.

“The Commission finds that Videotron did not contravene sections…of the HVOD exemption order or section 9 or the Broadcasting Distribution Regulations.”

Source: CRTC

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Telus’ challenge against Videotron 5G spectrum license rejected by Canadian Federal Court

The Canadian Federal Court officially rejects Telus’ challenge against Quebecor-owned Videotron. In September 2021, Telus and Bell filed a complaint against Videotron’s right to buy 5G spectrum in Western Canada.

Videotron purchased the rights for 3.5Hz in British Columbia, Alberta, and Manitoba during the summer of 2021. The deal was secured for $8.91 billion and served as the company’s formal expansion of its mobile services outside of Quebec while using the 5G spectrum.

Telus and Bell believe that Videotron does not meet the criteria required to do so. The company’s formal complaint states that Videotron was not already present on the western side of the country;  therefore, it should not have the right to buy 5G spectrum. Additionally, the complaints claim there is a lack of transparency.

In October 2021, Telus lost the initial court case against Videotron. Since this junction, Bell withdrew its complaints. However, Telus persisted. The most recent ruling from the Canadian Federal Court now rejects the objection. It’s not yet known whether Telus will file an appeal to the court.

The Canadian Federal Court found that Videotron used an affiliate called Fibrenoire, which is registered with the CRTC as a facilities-based provider. Fibrenoire was providing commercial telecom services to the general public, as confirmed by Videotron’s application.

Quebecor has been stirring up Canada’s telecom industry recently. The company is in the running to acquire Shaw Communications’ Freedom Mobile as well. Though, the deal is contingent on how Shaw’s merger with Rogers Communications pans out. However, it does appear as though the likelihood of the deal passing went up as the Competition Bureau looks into the merger over competitive concerns.

Source: Telecompaper

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Québecor’s CEO looks favourably at Competition Bureau’s blocking of Rogers Shaw merger

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

The Competition Bureau’s applications to block Rogers’ overtaking of Shaw helped Québecor Inc. favourably look into expanding its business in Canada, Pierre Karl Péladeau, Québecor’s CEO, said.

Péladeau made the comments in a press release outlining the company’s Q1 2022 results, referencing applications the federal agency filed Monday. The Bureau said Rogers’ overtaking would reduce competition and affordability.

Péladeau said comments made by the Department of Innovation, Science and Economic Development (ISED) also played a role. In March, François-Philippe Champagne, the Minister of Innovation, Science and Industry, said he wouldn’t approve a merger that would transfer Shaw’s wireless assets (in the form of Freedom Mobile) to Rogers because it would reduce competition.

In response, Rogers has attempted to ease the situation by putting Freedom Mobile up for sale, but the recent actions of the Bureau don’t seem to appease this problem.

The Globe and Mail reported Québecor was recently asked to join the conversation on acquiring Freedom Mobile, despite reportedly being excluded from initial talks.

The company’s other option of expanding, which was around before Rogers started discussions to sell Freedom Mobile, is using the 294 blocks of spectrum it purchased in the 3500 MHz band to offer telecom services in southern and eastern Ontario Manitoba, Alberta and British Columbia.

“We believe that these alternatives position us very favourably, as governmental and administrative authorities, including the Canadian Radio-television and Telecommunications Commission, pursue the public policy of establishing the conditions for true competition in wireless services in Canada,” Péladeau said.

He further referenced Québecor’s 22 percent market share in Quebec as evidence of the company’s “multidimensional expertise.”

“We would apply that expertise with equal energy in other parts of Canada. The opportunities are many and the alternatives promising,” Péladeau said.

The numbers

Québecor’s overall revenue was $1.09 billion, a $3.1 million decrease year-over-year.

8.7 percent revenue increases from Vidéotron offset the total figure. The increased revenue from mobile services and equipment totalled $20 million year-over-year.

Revenue from Vidéotron’s internet service also increased by 0.7 percent. The company added more than 1230,000 new connections over the past year.

Image credit: Shutterstock

Source: Québecor Inc.

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Large telecom companies want the CRTC to find another way to pay for next-generation 9-1-1

Telecom companies associated with the roll-out of next-generation 9-1-1 (NG9-1-1) services are asking the commission not to use money dedicated to other telecommunications services as a funding source, according to reporting from Cartt.ca.

The Canadian Radio-television and Telecommunications Commission (CRTC) has been working to figure out how to fund NG9-1-1 for some time, which comes with a $55 million price tag.

As the publication reports, telecom companies will pass the cost of the service to customers. But the cost larger telecom companies will be passing on is a lot less than the smaller companies.

The CRTC wants to use the National Contribution Fund (NCF) to alleviate cost concerns and asked companies to provide feedback. The money in the fund comes from service providers and partially pays for video relay services for customers with speech and hearing impediments.

Large telcos

In a submission, Telus said the CRTC should not access the funding through the NCF. In a second submission, the company said the commission should reclassify smaller operators as originating network providers (ONPs). Doing so will eliminate the current problem as they won’t have the tasks, and costs, associated with being an NG9-1-1 service provider.

SaskTel also advised against the CRTC dipping into the NCF as doing so could lead to problems given the lack of guidelines and oversight. However, the company said if the CRTC uses the NCF, the money should specifically be used to address “the large costs of subscribers experienced by very small providers.”

Bell proposed an option to have the NCF cover some costs of the service managed by the smaller players, and the rest come from customers.

Shaw and Rogers both stated the NCF shouldn’t be used to fund the process as it could complicate the situation. Québecor also voiced against the funding option.

The smaller players

As Cartt.ca reports, the Public Interest Advocacy Center (PIAC) said the NG9-1-1 networks should receive full funding from the NCF.

Partially funding the program would be “complicating the overall funding process but could also lead to significant cost disparities with respect to the remaining costs in different regions, resulting in end-users residing in remote and/or rural regions paying much more for the same service.”

Via: Cartt.ca

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Rogers is meeting with prospective Freedom Mobile buyers, but Québecor isn’t on the table

Discussions to sell Freedom Mobile have begun, the Globe and Mail reports.

It’s a vital aspect to complete the merger of Rogers and Shaw. Discussions on the merger began a year ago, but the fate of Shaw-owned Freedom Mobile didn’t become clear until recently.

Minister of Innovation, Science and Industry François-Philippe Champagne said earlier this month he won’t allow Shaw to transfer its wireless licenses to Rogers because it won’t help the government’s attempts to create new competition.

“The wholesale transfer of Shaw’s wireless licences to Rogers is fundamentally incompatible with our government’s policies for spectrum and mobile service competition, and I will simply not permit it,” he said in a statement.

Rogers needs to sell Freedom Mobile for the deal to close. According to the Globe and Mail, Rogers will have to convince the government the company’s new owner can compete with the country’s three largest carriers.

The Globe and Mail reports Rogers had initiated conversations with prospective buyers. While the publication has not released the names of these companies, it made clear Québecor is not one of the players. The company’s subsidiary, Vidéotron, expressed interest in acquiring Freedom Mobile.

Québecor released several statements since it became clear Shaw will have to sell Freedom Mobile. “We are pleased to see that the Committee’s members agree that we need real competition in wireless and that a strong independent fourth player would benefit Canadians,” Pierre Karl Péladeau, Québecor’s president and CEO,  said shortly after Minister Champagne made his comments. 

Source: Globe and Mail

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It’s official: Vidéotron wants to expand into Western Canada

Source: Shutterstock https://www.shutterstock.com/image-photo/montreal-canada-november-5-2018-videotron-1244631847

Vidéotron’s CEO has confirmed that the Montreal-based cable, wireless and internet company intends to expand its business into the provinces of Alberta, Saskatchewan and British Columbia.

In an interview with Postmedia’s editorial board, Pierre Karl Péladeau announced that his company will in fact use the 3,500 MHz radio spectrum it purchased at the federal government’s summer auction to enter the telecom market in Western Canada.

While refusing to give a firm number, Péladeau suggested that a fourth national competitor in that market could result in 15 to 30 percent lower prices for consumers.

The announcement comes the day after the Federal Court rejected a request from Telus that would have temporarily blocked Quebecor — Vidéotron’s parent company — from using the spectrum it purchased in Canada’s western provinces.

Telus and Bell are currently taking Quebecor to court, arguing that those spectrum purchases should not have been permitted because Vidéotron does not currently offer services in that part of the country.

However, Péladeau is now countering that his company intends to do just that.

The interview quotes him saying that Quebecor scooped up spectrum in Western Canada not “to flip an asset,” but to “build a business” in the region.

For context, Vidéotron has previously sold spectrum for profit. However, its reasoning at the time seemed less to do with hoarding resources and more to do with the high barrier to entry for mid-sized carriers hoping to step foot into Canada’s highly concentrated national telecom market, where Bell, Rogers and Telus have a legally-questionable stranglehold.

Case in point: Vidéotron sold that spectrum to Shaw Communications in 2017, and now Shaw is being gobbled up by Rogers.

Moreover, as the Vancouver Sun article notes, Vidéotron “still needs to strike deals with the existing carriers to piggyback on their networks to launch initially” — a process made all the more tricky by the Canadian Radio-television and Telecommunications Commission’s decision to backpedal on lowered wholesale rates that would have evened the playing field for small-and-medium-sized internet service providers.

Source: The Vancouver Sun