OTTAWA – In a letter to the editor of the Ottawa Citizen newspaper, Telus vice-president, wireless, broadband and content policy, Michael Hennessy, called out Quebecor for what he sees as a double standard.
As a member of the Canadian wireless industry, past president of the Canadian Cable Telecommunications Association and an ex-director of the Canadian Television Fund, Hennessy said he was "both shocked and troubled," about decisions made by Shaw and Videotron to withhold their CRTC-mandated contributions to the Canadian Television Fund.
"While it is disturbing that such unilateral action could jeopardize thousands of jobs and scores of projects in the independent television sector across Canada it is shocking to discover Quebecor, at the same time, is seeking taxpayer subsidies and special regulatory favours to get into the wireless business," reads the letter.
"Even as it decries so called ‘handouts’ to Canadian production, Quebecor is lobbying government to assist it to grow its own business interests. More remarkably a cable company with the lion’s share of the video market in Quebec has the audacity to claim that the wireless business is not competitive and that Canadians are disadvantaged by a lack of investment in wireless. That is as wrong as it is misleading.
"Telus has aggressively invested in wireless to the tune of close to $10 billion since 2000. And according to Merrill Lynch, revenue per minute for wireless voice calls in Canada has declined by 43 per cent over the past five years, placing Canada the third lowest in the Organization for Economic Co-operation and Development," reads Hennessy’s letter.
"Canada’s wireless industry does not need a lecture from the cable industry when it comes to competition and choice. The cable industry does not need to be propped up by taxpayer subsidies to compete. Telus is building a television distribution network in western Canada by investing shareholder dollars on prospects for future growth. We did not ask for a handout to enter a new market, neither should cable.
"Telus supports the principle of a level playing field when it comes to competition. Only a fair and open auction for wireless spectrum will ensure Canadians get a full return for use of the public airwaves and the truly competitive marketplace they deserve," the letter concludes.
