Montreal-based cableco Cogeco will consider launching MVNO services if the national regulator guarantees it wholesale access to the networks.
In a statement yesterday, the listed company said it will submit its proposal at a public hearing held by the…
Montreal-based cableco Cogeco will consider launching MVNO services if the national regulator guarantees it wholesale access to the networks.
In a statement yesterday, the listed company said it will submit its proposal at a public hearing held by the Canadian Radio-television and Telecommunications Commission (CRTC) on 29 September.
“Given the high concentration in the Canadian mobile wireless market, Cogeco strongly believes that regulatory measures fostering the entry of MVNOs in addition to other measures will increase competition in the market and enhance consumer choice,” Cogeco CEO Louis Audet said.
The Canadian government has advocated the entry of a fourth national operator in the sector, which is currently dominated by Roger, Bell and Telus with a combined 90% market share.
In this context, CRTC is undertaking a review aimed at assessing the competitiveness of the wholesale mobile wireless services market and identifying potential regulatory changes that would be required.
Cogeco argues that the entry of MVNOs in the market would contribute to increase investments in the telecoms industry.
However, the cableco would only consider launching wireless services if there was an enforceable order to ensure it access to the infrastructure of its much larger rivals, and if the rates at which this access was provided were dictated by the regulator, Audet was quoted as saying on a conference call yesterday.
During an investor conference on 17 September, the CEO said that Cogeco made submissions to the CRCT, arguing in favour of its ability to start an MVNO.
“If this is an attractive commercial opportunity, we would like to take advantage of it,” Audet said.
The French Canadian company has, over the last few months, been focusing on debt reduction following the acquisitions of Peer 1 Network Enterprises and Atlantic Broadband in 2012.
It has around C$2.8bn (US$2.5bn) in long-term debt, according to its latest quarterly results published in June. In the last quarter, it generated C$496m (US$446m) in revenues and EBITDA of C$229m (US$206m).
The cableco operates in Quebec and Ontario under the Cogeco Cable brand, and in some parts of the US under the Atlantic Broadband name.
