Quebecor CEO Pierre Karl Péladeau revealed plans regarding its newly acquired wireless company, Freedom Mobile, which include offering a “better product and a better price” to compete against Canada’s Big Three operators: Bell, TELUS and Rogers.
Keeping Freedom’s name despite Videotron’s acquisition, the CAD2.85 billion worth of investment promises plans will be at least 20% more affordable than the equivalent plans currently offered by major players.
After imposing strict conditions, the spectrum licenses of Freedom Mobile will be transferred to Videotron to “improve affordability, competition, and innovation in the telecommunications sector,” said Minister of Innovation, Science and Industry Honourable François-Philippe Champagne.
By creating Canada’s fourth formidable and competitive wireless service provider, Freedom and Videotron will have a combined total of more than 3.5 million customers for mobile services alone, as well as the expertise of nearly 7,500 employees.
With a combination of Freedom Mobile’s existing network, retail stores and customers, Videotron’s own valuable spectrum licenses and a favorable regulatory environment, Péladeau said that the “winning conditions” finally exist for his company’s long-discussed national expansion.
Investing more than $150 million to upgrade Freedom’s infrastructure, Videotron will have to expand its 5G wireless network in Freedom Mobile’s pre-existing operating territory within two years, giving 90% of its customers access to faster 5G service within this timeline.
Péladeau also mentioned that they will hold on to the Freedom Mobile business for at least 10 years, maintaining the prices for existing customers over a five-year span.
As part of the transition, existing Freedom customers will soon get a 10% increase in their local data limit for free to fulfill the “near-term bonus,” while Videotron invests to bring down prices overall.
Péladeau said that his company’s success in Quebec, which claimed 23% of the mobile market in about a decade and forced the Big Three to lower their own prices to compete, is the most significant proof that it can succeed in the rest of the country (the British Columbia, Alberta and Ontario markets).
The Minister clearly stated that in case of non-compliance with the terms, Videotron will be subject to significant financial penalties of up to $200 million.
