Lights on an internet switch are lit up as with users in an office in Ottawa, on February 10, 2011. THE CANADIAN PRESS/Adrian Wyld

Lights on an internet switch are lit up as with users in an office in Ottawa, on February 10, 2011. THE CANADIAN PRESS/Adrian Wyld

Analysts say new CRTC limits on Big 3 help regional carriers with growth plans

One of Canada’s most outspoken consumer advocacy groups, OpenMedia, criticized the CRTC on Thursday

Canada’s regional wireless and internet carriers will benefit the most from this week’s landmark regulatory ruling by the CRTC, telecommunications analysts and consumer advocates say.

Financial analysts at RBC Capital Markets and Canaccord Genuity Capital Markets say Quebecor’s Videotron and Cogeco Communications will likely have more room to grow, given the CRTC’s new restrictions on BCE’s 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.

“We view this decision as ‘constructive-enough’ and manageable for national operators while at the same time ‘extending a helping hand’ to existing regional wireless operators,” RBC analyst Drew McReynolds wrote in an report for clients.

However, one of Canada’s 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.

“It 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,” Tribe said in an interview.

Tribe has told numerous government and regulatory hearings that Canada’s three biggest telecommunications companies — which collectively have more than 90 per cent of the country’s subscriber base — 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.

“The CRTC’s decision essentially means that ‘eligible’ regional wireless carriers would be able to use incumbent networks to offer services until they build out their networks,” wrote Aravinda Galappatthige in a report from Canaccord Genuity.

Galappatthige said the decision is very favourable to regional wireless carriers.

“It 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,” Galappatthige wrote.

Canada’s current “fourth quasi-national player” 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

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Just Posted

Workers had a busy time today repairing a broken main water line. (District of Houston photo)
Water service being restored

Main line on 13th had broken

Flags at the District of Houston administrative building were lowered last week following the news that the remains of as many as 215 children were found buried on the grounds of the former Kamloops Indian Residential School. The flags were raised back up yesterday. (Houston Today photo)
Flags lowered in memory

Flags at the District of Houston administrative building were lowered last week… Continue reading

Bruce Tang- Unsplash photo
World Elder Abuse Awareness Day

“Older adults in our communities continue to find themselves in vulnerable situations… Continue reading

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Flowers and cards are left at a makeshift memorial at a monument outside the former Kamloops Indian Residential School to honour the 215 children whose remains are believed to have been discovered buried near the city in Kamloops, B.C., on Monday, May 31, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Pick a Sunday:’ Indigenous leaders ask Catholics to stay home, push for apology

Indigenous leaders are calling on Catholics to stand in solidarity with residential school survivors by not attending church services

“They will never be forgotten, every child matters,” says Sioux Valley Chief Jennifer Bone in a video statement June 1. (Screen grab)
104 ‘potential graves’ detected at site of former residential school in Manitoba

Sioux Valley Dakota Nation working to identify, repatriate students buried near former Brandon residential school

The Queen Victoria statue at the B.C. legislature was splattered with what looks like red paint on Friday. (Nicole Crescenzi/News Staff)
Queen Victoria statue at B.C. legislature vandalized Friday

Statue splattered with red paint by old growth forest proponents

Most Read