Videotron launches Quebec wireless network

Videotron Ltd. launched its new 3.5G wireless network Thursday, pledging to be an “unprecedented" force among the heavy hitters dominating Quebec’s wireless sector. At a press conference Thursday, Videotron president and CEO Robert Dépatie said a price war had begun and that his company is emphasizing value in addition to low prices. Videotron, a subsidiary of Quebecor Media, will go head-to-head in the province with Bell Canada, Rogers Communications and Telus Corp. In an analyst note issued Thursday, UBS Investment Reseach noted that Videotron has generally undercut the competition with its wireless rates but that its plans are not overly aggressive. Dépatie said Videotron's bundling options will set it apart from competitors. "We offer value to our customers and we want to recognize our customers who are supporting us in terms of multiple products," he said. The company is encouraging customers to take advantage of its TV and wireless bundles in an effort to create what it calls a "Videotron Ecosystem." Videotron's "quadruple player" wireless customers, who also subscribe to its home phone, Internet and TV services, can get mobile packages for $32.95. UBS said Quebecor’s television and video content will “provide unique appeal” to the Videotron wireless offering in the Quebec market. Quebecor owns the TVA network and other content providers, allowing Videotron to boast a larger selection of French-language and local content than any of its competitors. Videotron has 100 stores in Quebec and outstanding orders for wireless services through its website. The company has been in distribution talks with retail audio-visual stores, but no deals have been signed, Dépatie said later in the day on a conference call with analysts. Videotron’s list of “unprecedented offerings” includes unlimited free local and long-distance calling between Videotron customers in Québec, broader coverage over urban zones and municipalities and the use of illico mobile technology designed to improve content and video quality. But one element missing from Videotron’s challenge to competitors is the Apple iPhone. “We would love to offer our customers the iPhone. Obviously it’s a phone that people want,” Dépatie said. But, he added, the company’s top three smart phones, including the Google Nexus One, operate on the popular Android operating system. Dépatie said that within the next couple of months there should be an announcement about the introduction of the iPhone—currently incompatible with the frequencies used by Videotron—to the company’s product lineup. Other popular phones such as the BlackBerry Torch and the Samsung Galaxy were also absent from the company’s service at the launch. On the conference call with analysts, Dépatie also acknowledged that Videotron lacks a competitive edge on roaming charges. Although coverage will be extended to the Ottawa-Gatineau region, there are no plans for expansion to other large eastern Canadian cities such as Toronto. Dépatie also acknowledged that his team struggled to meet the launch deadline, an effort two years in the making. He said Quebecor CEO Pierre Karl Péladeau wanted the company to be ready for the back-to-school rush. But handsets didn’t even arrive until two weeks ago, he said. Videotron's wireless coverage is in its early stages. The company plans to cover 77 per cent of its customer base by October. It expects the network to be almost fully operational by 2011, with the final rollout of services scheduled for the Ottawa-Gatineau area in the spring. news@thewirereport.ca

Videotron launches Quebec wireless network

News | September 9, 2010

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