Canada91裸聊视频檚 regional wireless and internet carriers will benefit the most from this week91裸聊视频檚 landmark regulatory ruling by the CRTC, telecommunications analysts and consumer advocates say.
Financial analysts at RBC Capital Markets and Canaccord Genuity Capital Markets say Quebecor91裸聊视频檚 Videotron and Cogeco Communications will likely have more room to grow, given the CRTC91裸聊视频檚 new restrictions on BCE91裸聊视频檚 Bell Canada, Rogers Communications Inc. and Telus Corp.
But the analysts also say the three big national wireless carriers will likely be able to manage the new CRTC rules.
91裸聊视频淲e view this decision as 91裸聊视频榗onstructive-enough91裸聊视频� and manageable for national operators while at the same time 91裸聊视频榚xtending a helping hand91裸聊视频� to existing regional wireless operators,91裸聊视频� RBC analyst Drew McReynolds wrote in an report for clients.
However, one of Canada91裸聊视频檚 most outspoken consumer advocacy groups, OpenMedia, criticized the CRTC on Thursday for putting too much emphasis on the regional carriers, doing too little to limit the market power of the Big Three and doing very little to help new entrants to the wireless markets.
OpenMedia executive director Laura Tribe said the CRTC had missed a chance to stimulate competition from smaller players.
91裸聊视频淚t really doubles down on the idea that a regional provider will be sufficient to correct the extreme market share that Bell, Telus and Rogers have,91裸聊视频� Tribe said in an interview.
Tribe has told numerous government and regulatory hearings that Canada91裸聊视频檚 three biggest telecommunications companies 91裸聊视频� which collectively have more than 90 per cent of the country91裸聊视频檚 subscriber base 91裸聊视频� are too big and consumers have too few choices
The financial analysts took a more favourable view of the CRTC decision, noting that Videotron will have more options to strengthen its base in Quebec or buy assets in other provinces and Cogeco may be able to advance its strategic goal of adding wireless to its internet and cable TV networks.
91裸聊视频淭he CRTC91裸聊视频檚 decision essentially means that 91裸聊视频榚ligible91裸聊视频� regional wireless carriers would be able to use incumbent networks to offer services until they build out their networks,91裸聊视频� wrote Aravinda Galappatthige in a report from Canaccord Genuity.
Galappatthige said the decision is very favourable to regional wireless carriers.
91裸聊视频淚t does open the door for QBR (Quebecor) to extend beyond Quebec with wireless services whether they choose to do so in a limited fashion (i.e. parts of Ontario) or pick up the mantle as the fourth quasi-national player,91裸聊视频� Galappatthige wrote.
Canada91裸聊视频檚 current 91裸聊视频渇ourth quasi-national player91裸聊视频� is the former Wind Mobile, which has about two million subscribers in Ontario, Alberta and British Columbia. About half of them were added after the formerly independent company was bought in 2016 by Shaw Communications Inc. and renamed Freedom Mobile.
Most observers, including the CRTC, say the future for Shaw and Freedom is more difficult to predict because of a proposed takeover by Rogers, which has the largest base of subscribers and a network that spans most of the country. The Rogers-Shaw deal is subject to three federal approvals, including the CRTC and the Competition Bureau.
Quebecor chief executive Pierre Karl Peladeau told a committee of MPs, who are studying the Rogers-Shaw deal, that Videotron had originally wanted to become a national wireless carrier, but it sold its licences outside Quebec after scaling back its ambitions due to the enormous expense of building a new network.
David Paddon, The Canadian Press
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