Videotron Explores Expansion Talks with WIND Beyond Quebec

Itziar Morte

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Videotron admits to ongoing talks with WIND about expanding beyond Quebec

Videotron, a leading telecommunications company in Quebec, has confirmed ongoing talks with WIND and its financial partners about expanding its services beyond Quebec and Eastern Ontario. The company is waiting for the CRTC to regulate domestic roaming rates at a profitable level before making any decisions. Videotron is considering leveraging existing networks and potentially acquiring Mobilicity to establish a national footprint in cities like Toronto, Ottawa, Vancouver, and Calgary.

However, Videotron’s CFO, Jean-Francois Pruneau, cautions that a national wireless network may offer a more limited customer service experience compared to its current offerings in Quebec. The company’s success in Quebec is attributed to its ability to bundle home internet, cable television, and wireless services together, as well as its ownership of a vast selection of French- and English-language content.

Videotron’s expansion plans are further supported by its release of the iPhone, which has contributed to higher average revenue per user (ARPU) over the past year. WIND’s financial backers are eager to increase the new entrant’s ARPU, and the introduction of an LTE network and the availability of the iPhone are seen as potential ways to achieve this.

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While talks with WIND continue, Videotron is strategically positioning itself by holding 700Mhz spectrum in Ontario, British Columbia, and Alberta. The company believes that its existing LTE network in Quebec gives it an advantage in negotiating reciprocal domestic roaming agreements with other providers like Bell and TELUS. However, the final decision on Videotron’s expansion will depend on the outcome of the CRTC’s regulations.

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