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

B.C. Wildfire Services shows a fire on Chehalis Forest Service Road as of Sunday, May 16, 2021. (BC Fire Services)
10-hectare fire near Harrison Mills rages out of control second fire starts near Harrison Lake

A second fire burns near Silver River on east side of Harrison Lake

Looking out over the Fraser Valley from Chipmunk Ridge from the proposed Bridal Veil Mountain Resort. (BVMR)
Chance to ask questions about gondola resort proposal near Chilliwack

Project team for Bridal Veil Mountain Resort is holding another virtual info session

The Fraser Valley Bandits have signed guard Gentrey Thomas for the 2021 CEBL season. (Fraser Valley Bandits photo)
Fraser Valley Bandits sign guard Gentrey Thomas

Abbotsford-based basketball club signs former UC Riverside talent

Ryan Villiers is in town carving with his chainsaw and helping to promote this year’s Chainsaw Carving Championship, which is moving ahead. (Jessica Peters/ Hope Standard)
Hope’s biannual chainsaw carving competition moving ahead

With a controllable outdoor venue, popular event is in planning stages

The Seattle Cossacks are a popular portion of the Hope Brigade Days parade. Some form of a community parade may still take place, say organizers. (Standard file photo)
Hope’s Brigade Days once again hit by pandemic concerns

Main event cancelled, but there is a glimmer of hope some events could happen

An avalanche near Highway 1 in Glacier National Park. Avalanche Canada will benefit from a $10 million grant from the B.C. government. (Photo by Parks Canada)
Avalanche Canada receives $10 million grant from B.C. government

Long sought-after funds to bolster organization’s important work

An avalanche near Highway 1 in Glacier National Park. Avalanche Canada will benefit from a $10 million grant from the B.C. government. (Photo by Parks Canada)
Avalanche Canada receives $10 million grant from B.C. government

Long sought-after funds to bolster organization’s important work

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

(Vancouver Police Department)
Vancouver police ID 6 gangsters who pose a ‘public safety risk,’ launch gang task force

VPD asking public to stay away from these six people, who they say may be targeted in shootings

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

(Kamloops This Week)
Puppy’s home in question as BC Supreme Court considers canine clash

Justice Joel Groves granted an injunction prohibiting the sale or transfer of the dog

Kayak the humpback whale was found dead on a Haida Gwaii beach on Saturday, May 15, 2021. (Marine Education and Research Society)
Kayak the humpback whale found dead on Haida Gwaii beach

Whale was estimated to be only 18 years old

Then-finance minister Kevin Falcon presents his last B.C. budget, Feb. 21, 2012. The province was emerging from the 2009-10 recession and repaying federal incentive to cancel the harmonized sales tax. (Tom Fletcher/Black Press)
Political veteran Kevin Falcon set for second run at B.C. Liberal leadership

Social media run-up includes Dianne Watts endorsement

Conservation Service Officer Kyle Bueckert holds a gold eagle that was revived from acute rodent poisoning Monday, May 12. Photo: Submitted
‘Obviously, he’s a fighter’: Golden eagle, recovered from poisoning, back in Kootenay wild

CSO Kyle Bueckert released the eagle into the wild Thursday, May 13

Most Read