Quebecor Angling To Build Another Canadian 3G Network

Quebec-based media company Quebecor is angling to build a 3G mobile network in Canada, with CEO Pierre Karl Peladeau using the company’s annual shareholders meeting as a platform to “strongly encourage the government not to give into pressure from the three members of this oligopoly, who want at any price to maintain their control of this critically important sector”, and saying the government should allow more competition, reports News1130. He reportedly went on to say that Canadians are using outdated technology and have the lowest mobile penetration rate in the world (I suspect he actually said developed world). Quebecor reported revenues of CA$2.37 billion (US$2.13 billion) for the first quarter, and a net loss of $14.6 million (US$13.12 million).

Asking the government to make more spectrum available to build a competing network is one thing, but there seems to be something else going on because the other telcos are insisting that any new entrant competes on a level playing field. For example, Michael Hennessy, vice-president of wireless, broadband and content policy for Telus, said that “Quebecor should be prepared to pay several hundred million dollars to get a piece of the spectrum”, which would pass as a warning of the barriers to entry had not Ted Rogers — owner of Rogers Wireless — gone off on a rant earlier about new entrants not being given free spectrum but having to pay for it like the other telcos did.

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