Quebecor Decision to Expand Wireless Outside Quebec Coming in a “Few Months”
Videotron’s parent company, Quebecor, said today it is considering expanding its wireless services outside Quebec but a meeting with the Federal Government will determine its final decision, reports The Globe and Mail:
Quebecor Inc. will soon decide whether it will expand its wireless service outside of its home province of Quebec, but chief executive Pierre Dion wants to first meet with the federal government.
“We expect to meet with the Canadian government soon in order to let them know what we assume to be the right conditions for us to operate a single service wireless business outside of our home territory,” Quebecor president and chief executive Pierre Dion said Thursday.
“Its response will dictate our next step.”
Dion also mentioned “I’m confident that our team will manage the process rigorously and that should the plan make sense, we will get the right attention,” with the timeline for a decision to be made to come in a “few months”.
According to the Financial Post, Dion reiterated the buy-and-hold strategy for its newly acquired 700MHz wireless spectrum “has not been ruled out”; the company paid a mere $233 million for seven licenses in four provinces, which would essentially reach 80% of Canada’s population.
The comments came today after Quebecor announced its Q1 2014 earnings, which saw its Videotron segment grow 4.8% as sales reached $693 million, boosted by strong wireless and internet revenues.
Dion said the recent addition of the iPhone 5c and iPhone 5s to Videotron’s lineup has him optimistic, as he foresees higher average revenue per user (ARPU) and subscriber growth.
Back in March, Quebecor said its expansion plans would be on hold until Ottawa modified its wireless rules to give smaller companies a fighting chance versus incumbents.
Videotron looks to be the shining light for Canadian wireless users, as a viable fourth option. Let’s hope something happens.