(Ottawa) Quebecor saw an opportunity for Videotron to expand its presence nationally when the proposed $26 billion takeover of Shaw Communications by Rogers Communications was announced in March 2021.
Under cross-examination at Monday’s deal hearing, Quebecor President and CEO Pierre Karl Péladeau confirmed that his company, which owns Videotron, viewed the proposed merger as a chance to potentially enter in the wireless market in Western Canada.
Before the start of the cross-examination, Mr. Péladeau stressed Videotron’s long-term interest in becoming a national wireless player, adding that if Videotron succeeds in buying Freedom Mobile, owned by Shaw, it could succeed.
He also looked at Videotron’s success in Quebec and how it has differentiated itself from its competitors over the years with a focus on falling wireless prices in the province, the creation of a solid product and the improvement of its customer service.
Videotron acquired the 3,500 MHz spectrum in the summer of 2021, concentrated in southern and eastern Ontario, Manitoba, Alberta and British Columbia.
Quebecor agreed to buy Freedom in a $2.85 billion deal earlier this year.
The proposed sale of Freedom to Videotron is part of Rogers’ strategy to get across the finish line to its larger deal.
The sale of Freedom Mobile to Videotron would see Quebecor purchase all Freedom-branded wireless and internet customers as well as all of Freedom’s infrastructure, spectrum and outlets.
The hearing before the Competition Tribunal is expected to last until mid-December and aims to resolve the impasse between the Commissioner of Competition, who wants to block the agreement, and Rogers and Shaw.
The Competition Bureau is one of three regulators that must approve the deal, along with the Canadian Radio-television and Telecommunications Commission (CRTC) and Innovation, Science and Economic Development Canada.
Rogers wants to complete the deal with Shaw by the end of the year, with a possible further extension until January 31, 2023.