PKP says CRTC interim FTTP access rates need to be reflective of Bell’s true costs; Freedom lifts Quebecor to profitable Q3

Quebecor Inc. president and CEO Pierre Karl Péladeau is delighted with the CRTC for mandating wholesale access to incumbents’ FTTP networks in Ontario and Quebec., he said in a third earnings conference call with analysts Thursday, but is questioning the interim rates. “We are happy that the CRTC has announced its long awaited decision on FTTP wholesale rates which will foster and add competition in Quebec and Ontario,” he told an analysts’ call. “But it will be essential that these rates continue to be reflective of Bell’s true cost.” He said the BCE Inc. subsidiary is selling 1.5 gigabytes of data to consumers for $65 while telling the commission it will charge competitive carriers $108. Freedom is operating as a facilities-based competitor in British Columbia, Alberta and Ontario and will expand by becoming a mobile virtual network operator (MVNO) in other parts of the nation. MVNO rates are becoming more affordable, the CEO stated. Péladeau pointed proudly to reductions in the cost of wireless plans. A recent Statistics Canada survey found that while inflation went up by 3.8 per cent across Canada, wireless prices fell by 12.9 per cent. Freedom will soon be able to offer bundles to its customers, the executive said. There is a very favourable environment moving forward. Quebecor will be improving its networks and is in a good position when it comes to capital expenditures (capex). The Freedom rollout will be gradual, Péladeau reported. CFO Hugues Simard echoed those sentiments during his time on the call. He reminded the audience that the company has seven years in which to build out its network after buying spectrum. Until then, it will rely on roaming agreements with other carriers. Quebecor recorded revenues of $1.42 billion in the third quarter of 2023, up $271.7 million (23.8 per cent), and adjusted cash flows from operations of $482.4 million, up $79.3 million (19.7 per cent) compared with the same period of 2022. The telecom division increased its revenues by $287.9 million (30.6 per cent), and its adjusted cash flows from operations by $72.2 million (18.9 per cent), reflecting, among other things, the contribution of the Freedom purchase. The segment increased its revenues from mobile services and equipment (by $287.3 million or more than 100 per cent) due to the impact of the Freedom acquisition and growth in the revenues of Videotron and its revenues from Internet access services (by $8.2 million or 2.6 per cent). Fiscally, things were not so bright in the media section of the company. TVA Group reported declines of $11.9 million (‑9.1 per cent) in revenues compared with the third quarter of 2022. The network revealed massive layoffs last week. Péladeau termed that a “sad announcement.” “I would like to reiterate our thanks and support for the more than 500 colleagues that will depart the company in the upcoming months,” he said. “Their personal investments will be rewarded.” Simard said he could not give exact totals of how much the severance packages would cost. Not all affected are full time employees and many of those who are, are protected by union agreements. The company is keeping its figures close to its chest while negotiations with the labour groups are ongoing. The deficit at TVA is no longer sustainable, Péladeau maintained. The global situation for broadcasting is dire and the shrinking advertising market is a long term trend. He once again pleaded with the CRTC for regulatory relief to alleviate the problems. On a happier note, the CEO revealed that for the 17th time, a Léger poll in Quebec found that Videotron was rated the best telecom provider in the province. The survey was conducted the first week of August. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

PKP says CRTC interim FTTP access rates need to be reflective of Bell’s true costs; Freedom lifts Quebecor to profitable Q3

News | November 9, 2023

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PKP says CRTC interim FTTP access rates need to be reflective of Bell’s true costs; Freedom lifts Quebecor to profitable Q3

News | November 9, 2023

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