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Videotron Tells CRTC Mandating MVNOs Would Have ‘Major Consequences’

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Quebec-based wireless provider, Videotron, spoke at the Canadian Radio-television and Telecommunications Commission (CRTC) public hearing today regarding wireless services.

The Quebecor-owned company argued to maintain the status quo of facilities-based competition, as it is “a model that has proven its effectiveness and allowed the emergence of regional players such as Videotron.”

Videotron detailed since its 2008 launch, wireless prices have fallen more in Quebec than other parts of Canada, as it was able to take on the ‘Big 3’ head-on. The company says it has also invested over $2.5 billion for spectrum and its network, plus “created thousands of good jobs.”

Its business model is “a concrete example of the effectiveness of the facilities-based competitive model, which the CRTC should continue to promote,” explains Videotron.

Videotron explained with 5G on the horizon, “the CRTC must not undertake a reform that would hinder technological innovation and investment in infrastructure across the country.”

“Pro-reseller regulation designed to artificially favour players that do not invest in facilities can only result in a technological lag for Canada, with significant implications for the Canadian economy,” and the CRTC needs to drop the idea of MVNOs, or face “major consequences for the viability of the telecommunications industry and the development of our communities,” details Videotron’s press release.

Pierre Karl Péladeau, President and CEO of Quebecor, said in a statement, “The CRTC must ensure that investment in facilities continues, while continuing to recognize the unique contribution to competitiveness and innovation made by Videotron and other regional players.”

“Videotron urges the CRTC to discard this idea, which would have major consequences for the viability of the telecommunications industry and the development of our communities,” concluded the company.

Incumbents Bell and Telus are also against mandating against MVNOs, which they argue would cause a decrease in capital investments and also impact jobs and philanthropic giving.

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