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

Construction work in 2020 at Nelson’s Mountain Station reservoir. Photo: Bill Metcalfe
New report outlines how to protect Nelson’s water sources

Document looks at stream flows, forests, terrain stability, wildfires, flooding, and more

South Okanagan MP Richard Cannings wants to see dental coverage for all Canadians. (courtesy of Pixabay)
OPINION: South Okanagan MP fights for universal dental care

One in three Canadians have no dental coverage, with COVID making it even worse

COVID-19 cases are once again dropping across the West Kootenay. Illustration: BC Centre for Disease Control
Ten new cases of COVID-19 in Nelson area

Numbers are steadily dropping across the West Kootenay

The first Pfizer-BioNTech COVID-19 vaccine dose in Canada is prepared at The Michener Institute in Toronto on Monday, Dec. 14, 2020. THE CANADIAN PRESS/Frank Gunn
One death, 39 new cases of COVID-19 in Interior Health

There are 484 active cases of the virus in the region currently

Portions of the Skattebo Reach Trail are being improved. Photo: Betsy Kline
Skattebo Reach Trail near Castlegar to become cycle friendly

Trail improvements geared towards cyclists being done in 2021

Prince Rupert was one of the first B.C. communities targeted for mass vaccination after a steep rise in infections. Grey area marks community-wide vaccine distribution. (B.C. Centre for Disease Control)
B.C. tracks big drop in COVID-19 infections after vaccination

Prince Rupert, Indigenous communities show improvement

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Brian Peach rescues ducklings from a storm drain in Smithers May 12. (Lauren L’Orsa video screen shot)
VIDEO: Smithers neighbours rescue ducklings from storm drain

Momma and babies made it safely back to the creek that runs behind Turner Way

Signage for ICBC, the Insurance Corporation of British Columbia, is shown in Victoria, B.C., on February 6, 2018. THE CANADIAN PRESS/Chad Hipolito
$150 refunds issued to eligible customers following ICBC’s switch to ‘enhanced care’

Savings amassed from the insurance policy change will lead to one-time rebates for close to 4 million customers

The Libby Dam on the Kootenai River in Montana. The dam created the Koocanusa Reservoir, which straddles the B.C./Montana border. (photo courtesy Wikipedia)
Outflow at Libby Dam to be increased

Volume increase to aid migration and spawning conditions for endangered white sturgeon in the Kootenai River

Police investigate a fatal 2011 shooting in a strip mall across from Central City Shopping Centre, which was deemed a gang hit. The Mayor’s Gang Task Force zeroed in on ways to reduce gang involvement and activity. (File photo)
COVID-19 could be a cause in public nature of B.C. gang violence: expert

Martin Bouchard says the pandemic has changed people’s routines and they aren’t getting out of their homes often, which could play a role in the brazen nature of shootings

Tinder, an online dating application that allows users to anonymously swipe to like or dislike other’s profiles. (Black Press Media files)
B.C. man granted paternity test to see if Tinder match-up led to a ‘beautiful baby’

The plaintiff is seeking contact with the married woman’s infant who he believes is his child

Nurse Tami Arnold prepares to administer a COVID-19 vaccine. (Kareem Elgazzar/AP)
B.C. adults 30+ now eligible to get vaccinated against COVID-19

Health officials made the announcement Wednesday afternoon

Richard Green writes poetry under the nom de plume Rick the Poet Warrior. Homeless, Green sometimes spends his summers in Revelstoke but winters in Victoria, travelling to Ontario to visit his sister whenever he can. (Jocelyn Doll - Revelstoke Review)
Revelstoke nomad pens poetry, offers insight into homelessness

Rick the Poet Warrior’s books can be found online as well as at the Revelstoke library

Most Read