Latest news with #Cogeco
National Post
3 days ago
- Business
- National Post
NP View: Mélanie Joly should leave those fibre optic cables alone
Article content Bell is also aggrieved because it says it has invested over $18 billion in the past five years to bring fibre to three-million homes and businesses in Manitoba, Ontario, Quebec and Atlantic Canada, and will no longer receive the rate of return it once expected. Article content Already, Cogeco and Eastlink have announced that they are 'suspending further planned upgrades to many smaller communities across Canada,' and Bell says it has reduced capital expenditures by $1.2 billion since the CRTC made its initial decision in late 2023. Article content While it's possible that these companies are simply posturing to make a political point, reduced investment is exactly what should be expected when governments introduce policies that reduce the rate of return companies can expect from their investments. Article content Last year, the CRTC noted that two expert reports found that the policy would 'negatively impact the business case for deploying fibre to areas that have not yet received' it, and admitted that the finding was 'credible.' Article content Yet the regulator thinks it can mitigate this risk by properly setting prices — something central planners have never been successful at — and by 'delaying competitor access to any newly deployed fibre until 2029.' That will give network operators five years to recoup the cost of new infrastructure, but will not alleviate the disincentive to expand or maintain those networks in the future. Article content Like many telecommunications policies crafted or backed by our Liberal government, this one appears to be designed to solve a problem that may no longer exist in the near future. Twenty years ago it was absolutely the case that Canada's big telecommunications companies had a natural monopoly over internet service, providing it over existing telephone and cable networks. Article content But nowadays, cellular networks are ubiquitous and can provide peak speeds that are at least theoretically comparable to fibre. Meanwhile, companies like Starlink are offering satellite-based internet that's available from virtually anywhere and offer speeds that are perfectly adequate for most personal and business uses at increasingly competitive prices. Article content The Carney government was elected on a promise that it would do things differently, and that excessive regulation would not be allowed to stand in the way of attracting investment and building a more productive and resilient economy. Article content If it were at all interested in attracting investment, increasing competition and building the types of high-speed networks that are essential components of the digital economy, it would have removed foreign ownership restrictions. This would have allowed foreign companies that can afford to build their own networks to compete in the Canadian marketplace. Article content
Vancouver Sun
3 days ago
- Business
- Vancouver Sun
Telus strikes back at Cogeco and defends Joly's decision to uphold CRTC's wholesale internet rules
OTTAWA — Days after Cogeco's CEO blasted Industry Minister Melanie Joly for authorizing Canada's three major telecommunications companies to resell fibre optics to internet service providers on their respective networks, the only member of the big three telecoms in favour of the measure came to the minister's rescue. 'We have a government that's actually very committed to truly bringing competition and better choice for Canadians, I think, and not interested into political interference with their own administrative process,' said Telus chief technology officer Nazim Benhadid. Last week, Joly sided with the Canadian Radio-television and Telecommunications Commission (CRTC) after it decided to allow for greater competition on existing networks for high-speed Internet services across the country. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'By immediately increasing competition and consumer choice, the CRTC's decision aims to reduce the cost of high-speed Internet for Canadians and will contribute toward our broader mandate to bring down costs across the board,' Joly said in a statement. The decision means, for example, that Telus can use other providers' networks to attract thousands of customers in Ontario and Quebec instead of building its own infrastructure. It has angered major players in the sector, such as Bell, Rogers, Eastlink, and Cogeco, who said it would harm them, and the investments needed to improve their networks. They also questioned the potential for cost reduction. In an interview with the National Post, Benhadid cited Statistics Canada to claim that costs in some regions of the country had fallen by 13.5 per cent since the CRTC released the new framework a year ago. He also challenged his competitors to invest in Western Canada, where Telus has a strong presence. 'It's symmetrical. (All these companies) can come and compete in Calgary, Edmonton, Vancouver. Everywhere we serve, our fibre is available. So it's hard to understand this argument that it's not good. They don't want to come and compete in the west. It doesn't work for their strategy,' he said. Most of the sector's key players are based in Ontario and Quebec, with Montreal housing three headquarters. Telus is based in Vancouver, British Columbia. But Benhadid was quick to point out that when he joined Telus in 2000, fresh out of school, the company was a small amalgamation of regional players from Western Canada. This Montreal engineer, a graduate of the École Polytechnique at the Université de Montréal, recalls that the company he joined had only four employees in Quebec's largest city. Today, Telus has more than 6,000 employees in Montreal. '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.' National Post atrepanier@ Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our politics newsletter, First Reading, here .
Calgary Herald
3 days ago
- Business
- Calgary Herald
Telus strikes back at Cogeco and defends Joly's decision to uphold CRTC's wholesale internet rules
'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.' National Post atrepanier@ Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our politics newsletter, First Reading, here.
National Post
3 days ago
- Business
- National Post
Telus strikes back at Cogeco and defends Joly's decision to uphold CRTC's wholesale internet rules
This advertisement has not loaded yet, but your article continues below. A pedestrian walks past the Telus Harbour building in Toronto, Ontario, Canada. Photo by Brent Lewin / Bloomberg OTTAWA — Days after Cogeco's CEO blasted Industry Minister Melanie Joly for authorizing Canada's three major telecommunications companies to resell fibre optics to internet service providers on their respective networks, the only member of the big three telecoms in favour of the measure came to the minister's rescue. THIS CONTENT IS RESERVED FOR SUBSCRIBERS Enjoy the latest local, national and international news. Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events. Unlimited online access to National Post. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles including the New York Times Crossword. Support local journalism. SUBSCRIBE FOR MORE ARTICLES Enjoy the latest local, national and international news. Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events. Unlimited online access to National Post. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors 'We have a government that's actually very committed to truly bringing competition and better choice for Canadians, I think, and not interested into political interference with their own administrative process,' said Telus chief technology officer Nazim Benhadid. Last week, Joly sided with the Canadian Radio-television and Telecommunications Commission (CRTC) after it decided to allow for greater competition on existing networks for high-speed Internet services across the country. 'By immediately increasing competition and consumer choice, the CRTC's decision aims to reduce the cost of high-speed Internet for Canadians and will contribute toward our broader mandate to bring down costs across the board,' Joly said in a statement. The decision means, for example, that Telus can use other providers' networks to attract thousands of customers in Ontario and Quebec instead of building its own infrastructure. It has angered major players in the sector, such as Bell, Rogers, Eastlink, and Cogeco, who said it would harm them, and the investments needed to improve their networks. They also questioned the potential for cost reduction. In an interview with the National Post, Benhadid cited Statistics Canada to claim that costs in some regions of the country had fallen by 13.5 per cent since the CRTC released the new framework a year ago. He also challenged his competitors to invest in Western Canada, where Telus has a strong presence. 'It's symmetrical. (All these companies) can come and compete in Calgary, Edmonton, Vancouver. Everywhere we serve, our fibre is available. So it's hard to understand this argument that it's not good. They don't want to come and compete in the west. It doesn't work for their strategy,' he said. Most of the sector's key players are based in Ontario and Quebec, with Montreal housing three headquarters. Telus is based in Vancouver, British Columbia. But Benhadid was quick to point out that when he joined Telus in 2000, fresh out of school, the company was a small amalgamation of regional players from Western Canada. This Montreal engineer, a graduate of the École Polytechnique at the Université de Montréal, recalls that the company he joined had only four employees in Quebec's largest city. Today, Telus has more than 6,000 employees in Montreal. '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. This advertisement has not loaded yet. This advertisement has not loaded yet, but your article continues below. '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.' National Post atrepanier@ Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our politics newsletter, First Reading, here.
Vancouver Sun
6 days ago
- Business
- Vancouver Sun
'Dangerous decision': Telecom CEO blasts Joly's decision to uphold CRTC's wholesale internet rules
OTTAWA — A week after allowing Canada's three major telecommunications companies to resell fibre optics to Internet service providers on their respective networks and those of smaller players, Canada's industry minister is facing harsh criticism from the industry. The uproar is coming first and foremost from her hometown of Montreal, where three major telecommunication companies are headquartered and where the frustration is still intense. 'I am in shock. In shock. I am profoundly disappointed,' said Cogeco's CEO Frédéric Perron in an interview with National Post. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. The Montreal-based company is not thrilled with the new minister's first consequential move. So much so that he wanted to 'ring the alarm bell' because he never thought that 'such a damaging, dangerous decision' as the one she made last week 'would or could be made.' 'We had high hopes that this new government would make better decisions for business and the Canadian economy,' Perron said. 'And what we saw last week, by the minister's decision, is more reminiscent of old Trudeau era, superficial policies.' Within the industry, Mélanie Joly was expected to announce her rebuttal of a controversial decision by the Canadian Radio-television and Telecommunications Commission (CRTC) that allows, for example, a company like Telus, which is strong in Western Canada, to use other providers' networks to attract thousands of customers in Ontario and Quebec instead of building its own infrastructure. The regulator said the measure was intended to reduce costs for consumers. Cogeco and other stakeholders say there is no concrete evidence to support its assertion 'It discourages investment, weakens competition, and ultimately harms Canadian consumers,' said Robert Ghiz, the president and CEO of the Canadian Telecommunications Association. This was such a hot issue that last year that Joly's predecessor,François-Philippe Champagne, heard the industry's call to overturn the CRTC decision by asking the regulator to 'reconsider' its decision to 'respond to concerns about the business case for future and ongoing investments in infrastructure in less densely populated areas.' At the time, Joly was minister of foreign affairs and a member of cabinet when the order was given . Companies like Cogeco or Eastlink were especially challenging the fact that the big three telecom players in Canada can resell their networks and that they're forced to open it to them. But last week, Joly posted a message on her X account confirming she would uphold the regulator's decision. 'By immediately increasing competition and consumer choice, the CRTC's decision aims to reduce the cost of high-speed Internet for Canadians and will contribute toward our broader mandate to bring down costs across the board,' she wrote. Joly's office did not provide any comments on time for this story. The decision was made the day before Bell Canada's quarterly results were announced. Bell's stock was down that morning, and observers noted a correlation with the minister's decision. In an analyst call that morning, Bell's CEO Mirko Bibic said he was 'disappointed' and urged the government and the CRTC 'to ensure that network builders are fully compensated for significant build costs and investment risks they take in building.' It also came a few weeks after Cogeco announced a new mobile service with an introductory one-year free offer. 'With this decision, the minister is essentially saying it's okay if the Big Three get even bigger. It's okay if the regional, local players suffer, and it's okay if there's a re-monopolization of telecoms in Canada,' Perron said. 'We don't think it's okay. Consumers won't think it's okay, and we'll fight to make sure it doesn't happen.' Cogeco and Eastlink, which announced last week it was 'suspending further planned upgrades to many smaller communities across Canada,' filed an appeal in July asking the Federal Court of Appeal to quash the decision. But in Ottawa, overriding a decision from the CRTC was seen as a 'bold move' and that could 'rattle the cage' not even six months after an election and a new prime minister in charge. Sources said the minister had a duty to ensure the sustainability of institutions and protect the national interest. Champagne, who has since become minister of finance, did not comment for this story. His office confirmed that he attended the cabinet meeting in which the decision was confirmed and that 'Canada's new government has a strong mandate to bring costs down and to build one, strong, Canadian economy.' 'We would have liked to see a lot more courage, and I'm happy to be quoted on that. It seems to me like deferring to the CRTC and maintaining the status quo was the easy way, but not the right way. Sometimes the best decision is the hard decision in life, and we are saddened that the hard decision was not made,' said Perron. Sources in the industry support Perron's comments about the decision. In a statement last week, Rogers Communications said 'the Carney government has declared its priority is to build a strong Canada and this decision does the exact opposite.' A recent PwC study shows that the telecommunication sector directly contributed $87.3 billion in GDP to Canada's economy and supported over 661,000 jobs in 2024. By 2035, the Canadian telecom industry could contribute another $112 billion to Canada's overall GDP, according to the study. But for Cogeco and other players, this decision could threaten these expectations. 'The decision from last week is not sending the right signal, and it's concerning to me,' said Perron. National Post atrepanier@ Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our politics newsletter, First Reading, here .
