The head of Freedom Mobile says Canadian wireless providers need to drop their costs to better serve customers as the industry faces increased pressure to lower monthly bills.
Pierre Karl Péladeau, the CEO of Quebecor, addressed a Calgary business crowd on Wednesday to discuss the shifting landscape of the Canadian telecom market. Since Quebecor acquired Freedom Mobile from Shaw Communications in 2023, wireless prices across the country have seen a notable decline, though they remain significantly higher than those in many European nations.
Péladeau noted that while his company has successfully gained market share, the path forward involves pushing the industry toward a more efficient, lower-cost model.
“We need to make sure that we will service our customers better; we need to be a lower-cost operator,” Péladeau said, according to the Calgary Herald.
Quebecor, which operates Freedom Mobile, Videotron and Fizz, has grown its subscriber base to 4.4 million users across British Columbia, Alberta, Manitoba, Ontario, and Quebec. While Freedom currently relies on roaming agreements to use the infrastructure of other carriers in Western Canada, Péladeau suggested that owning the hardware is the preferred long-term strategy.
“It’s always just more economically viable to operate on the network instead of being forced to rent,” Péladeau explained. “Being an owner is better.”
He added Quebecor needs to serve its customers better and they need to be a “lower cost operator”. As for incumbent rivals? “They need to be more competitive,” he said Péladeau.
The increased competition from Freedom Mobile is already being felt by Canada’s largest carriers. Rogers reported yesterday a slowdown in earnings growth and a reduction in capital spending, citing a “highly competitive” environment. Some reports detailed how investment firms sold their Rogers positions back in the spring, citing how estimates were falling.
When the Big 3 are charging $85 per month for a global roaming plan, and Freedom Mobile can offer the same for $40? Yeah, that’s going to take away some customers. For consumers, it comes down to tracking cellphone prices and knowing when to switch to the best deal.
Did you switch to a cheaper cellphone plan in Q2?
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$20-30 for 400gb and 100gb international roaming soon?
that would be crazy ha
Waiting for a time when $20/60 GB plan is the norm as opposed to a flash sale.