Telus strikes back at Cogeco and defends Joly's decision to uphold CRTC's wholesale internet rules

Calgary Herald

a day ago

'So it's always been in our DNA to compete and be present across the country,' said Benhadid. During the interview, he often highlighted Cogeco's business model, which includes investments abroad, notably its failed attempt to conquer the Portuguese market two decades ago.
'Cogeco's strategy is to compete in the U.S., outside of Canada,' said Benhadid.
The Telus executive's comments came a few days after the CEO for Cogeco told National Post he wanted to 'ring the alarm bell' because he never thought that 'such a damaging, dangerous decision' as the one Joly made on Aug. 6 'would or could be made.'
'We had high hopes that this new government would make better decisions for business and the Canadian economy,' Frédéric Perron said. 'And what we saw last week, by the minister's decision, is more reminiscent of old Trudeau era, superficial policies.'
Many key industry players expected Minister Joly to announce her rejection of the CRTC's decision.
But for Telus's CTO, these comments came as a surprise.
'I am surprised, because objectively they don't stand in front of the economic theories test,' Benhadid said.
At a time when Prime Minister Mark Carney wants to see Canadian companies invest in Canada, several players in the telecommunications industry say that Joly's decision will not encourage them to do so.
Financial analyses they're citing, including from Bank of America and National Bank, predict that such decision would lead to 'a decline in future investments in telecommunications infrastructure.'
This file has also become a political melodrama in some corners of Parliament Hill. Since Joly announced her decision on a hot and dry summer evening last week, she has remained silent and did not offer any other comments than the statement she released.
On Thursday afternoon, the Bloc Québécois asked the minister to review the decision.
'Maintaining this status quo makes no sense, especially since even two of the three major telecommunications players opposed it. By doing so, Minister Joly will prevent smaller telecommunications players from becoming competitive and growing, and it is the citizens who will pay the price,' said the Bloc's Industry critic Gabriel Ste-Marie.
But for Telus, the regulatory issue is settled, and its leadership team is ready to move forward.
The company recently announced it will expand broadband services in Ontario and Quebec with $2-billion investment in areas that don't already have fibre.
'So the areas that companies are saying they're not going to invest in we will. And after five years, they will have access to this fibre,' he said. 'So, their strategy is to not compete in Canada. Their strategy is to do something else. And now they're trying to justify their strategic choices.'
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