Competition Bureau MVNO proposal ‘punts the problem’: Natale

GATINEAU, Que. — Rogers Communications Inc.’s Joe Natale was the last of the big three wireless provider CEOs to address the CRTC’s wireless hearing, telling commissioners on Wednesday that they shouldn’t mandate even a limited form of mandatory MVNO, or introduce a broad low-cost plan championed by consumer advocates. On the first day of the hearing, the Competition Bureau put forward its arguments that the CRTC should implement a temporary hybrid model, where mandated access to incumbent networks would be granted to those mobile virtual network operators that also made commitments to investing in network infrastructure. “On the surface, when you look at the Competition Bureau proposal, it’s the most similar to an infrastructure-based, investment-based regulatory approach that we’ve seen or that has been postulated. It may on the surface seem like the least harmful,” Natale said, echoing statements from Bell CEO Mirko Bibic, who called it the “least aggressive” option last week. “But when you dig into the details, you realize it’s very complex… and it really pivots on this notion of a five-year sunset,” Natale said. “And we’ve debated amongst ourselves, we just can’t seem to figure out how we can actually effectively manage a five-year sunset if we were given responsibility for it.” He said it “just punts the problem into the future in response to managing the sunset.” If, after four years, the MVNO hasn’t met their building obligation, then the incumbents would be in a “difficult circumstance that would probably start with a plea to extend the period longer,” Natale explained. Rogers executives addressed the hearing Wednesday in a presentation that was more subdued than some of the other large telecoms, who responded to the prospect of mandated MVNOs with threats of job cuts and legal action in their appearances. Speaking to reporters after the company’s appearance at the hearing, Rogers’ president of wireless, Brent Johnston, declined to specify whether Quebecor Inc. CEO Pierre Karl Péladeau’s view that mandated MVNO access would violate spectrum purchase agreements and lead to lawsuits was shared by others in the industry. “What Videotron believes is their right and responsibility and we’re obviously going to work in the best interests of Canadians for affordability and for the future of the wireless industry and everybody concerned, and that’s going to be our focus,” Johnston said. Rogers executives were also asked by the CRTC panel about a proposal by the Coalition for Cheaper Wireless Service to mandate a low-cost bring your own device wireless plan, providing 4 GBs of data monthly for a maximum of $30 a month. Natale said if a mandated low-cost plan was targeted only at low-income Canadians and involved means testing, the company is willing to consider the idea. “If it’s a plan that’s broadly available to everyone, it could be devastating overall… the average customer we have uses about 2.5 gigabytes of data a month and our average revenue per customer right now sits at around $55,” he said, with a “break-even point” in the $40 range. “So it stands to reason that if we introduce a plan that would impact two-thirds of our customer base…. It would eradicate, I would say the vast majority of our profits.” He added that “a broad plan at 4 GB would eviscerate the industry economics.” — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Adam Langenberg at alangenberg@thewirereport.ca

Competition Bureau MVNO proposal ‘punts the problem’: Natale

News | February 26, 2020

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Competition Bureau MVNO proposal ‘punts the problem’: Natale

News | February 26, 2020

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