CALGARY – Shaw Communications CEO Brad Shaw today affirmed his company’s stance against the federal government’s and CRTC’s desire to see new, non facilities-based wireless competition in Canada.
In February, as readers will recall, the CRTC launched a new review into the wireless market and noted its view was to mandate mobile virtual network operators (MVNOs – or third party carriers who lease space on incumbent networks) to operate in Canada since few have launched under the existing regs. Those who would like to launch an MVNO in Canada have said the wholesale rates proposed by the existing wireless operators make such a move unthinkable.
“It is the Commission’s preliminary view that it would be appropriate to mandate that the national wireless carriers provide wholesale MVNO access as an outcome of this proceeding,” reads the CRTC’s notice of February 28, 2019. “The Commission considers that, on balance, it is likely that the benefits that a well-developed MVNO market would deliver to Canadians are now more likely to outweigh any negative impacts that a policy of mandated wholesale MVNO access might have on wireless carriers’ network investments, particularly given the extensive investments that have been made in recent years.”
With the federal government pushing for more competition in wireless, too, the CRTC has had to go in this direction.
Given that Shaw, under its Freedom Mobile brand, has been investing heavily building its network and distribution under the current facilties-based regulatory environment, CEO Brad Shaw told analysts this morning during its second quarter results conference call the company is rather unhappy with this turn of events.
“Like others in the industry, we were very surprised, if not shocked to see the CRTC come out with their preliminary view in support of mandated MVNO,” said Shaw this morning. “Clearly, we are absolutely opposed to this view and will be participating in the comment period as to why such a mandated regime is not only bad for Canadians, but also bad for the future of sustainable wireless competition in Canada and the future of 5G in Canada.
He added Freedom is already “absolutely doing our part bringing more affordable services to Canadians.”
However, Shaw also cautioned investors that it’s too early to make any assumptions on how this will end. The CRTC’s hearing won’t happen until January 2020.
“There are going to be many stages over the course of the year and even an election and… we’re going to be an active participant, but it’s really hard for me to comment on how these changes are going to affect our decision making but I can tell you we’re going to be very active and a full participant in that process,” added Shaw.
