More work needs to be done in creating a more competitive wireless sector

Vidéotron ltée hasn’t hidden its belief that the Canadian wireless sector lacks the competitive spirit and rivalry that exist in other countries. The company has now taken two opportunities to voice its concerns in this regard to the House of Commons Standing Committee on Industry, Science and Technology.Luc Lavoie, executive VP of corporate affairs, Quebecor Inc. and Vidéotron, is the chief spokesperson on regulatory matters for the company. Below are statements taken from his last appearances before the committee. October 19, 2006Indeed, if we are looking for ways to benefit Canadian consumers, I would suggest that we might all be looking in the wrong place. Although the policy directive before us today does not specifically address the case of mobile telephony, I will take advantage of my presence here today to suggest to you Parliamentarians that you should begin to be seriously concerned with the prevailing situation in this sector in Canada.Mobile telephony is currently concentrated in the hands of an oligopoly, and while third-generation technology is rapidly penetrating the USA, as well as countries in Europe and Asia, here in Canada we are lagging farther and farther behind. Beyond just having to support outdated technologies, according to the OECD, Canada is in 29th place among the 30 member countries of the organization in terms of mobile telephone penetration, ahead only of Mexico and behind Turkey. All the while, Canadians pay 60% more than our southern neighbours for inferior mobile telephone services. This is very worrisome in several regards, in particular because third-generation mobility is much more than telephony. It is the vehicle of the future for culture, whether it be music, film, television,or news.This monopoly must be broken, in the shortest possible time frame. Otherwise, Canadians will find themselves treated like citizens of a developing country.February 7, 2007With the digital revolution that is unfolding before our eyes, cable companies are acting less and less like cable companies and more and more like telecommunication companies that must be active in all telecommunication sectors. Cable companies must currently deal with complicated regulations that are not in the interests of the consumers, the market or the Canadian economy.We would encourage the minister and the government to continue moving in the direction of deregulation and a free-market system, and we would encourage the government to accelerate the arrival of new competition in the mobile telephone sector. We believe that this sector constitutes the next frontier and that new competition in the mobile telephone sector will enable Canadians to stop having to pay 60% more than their American neighbours for their telephone services. As far as the penetration rate is concerned, Canada currently is ranked 30th amongst OECD countries.Canadians do not have access to the latest technology as they should. Right now, the most recent technology is becoming the norm in Europe, Asia and very quickly in the United States. Canadians are lagging behind whereas this new generation of technology encompasses much more than mobile telephone services: it is a portal to culture, music and television programming which will become a universal communication vehicle.We would therefore encourage the government to do what is needed so that there is more competition in this sector.

More work needs to be done in creating a more competitive wireless sector

News | February 26, 2007

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