Quebecor’s Videotron said Friday it has fulfilled all of its commitments to the federal government when it acquired Freedom Mobile.
The commitments were that it maintain Freedom’s pricing and to add data, which it said were fulfilled within two months of the closing of the acquisition in April 2023; that it offer competitive pricing, the result of which contributed to a lowering of wireless prices broadly as per Statistics Canada data; make uniform the plan prices for both Videotron and Freedom in Quebec, which it said it went above and beyond by lower prices and increasing data; that it extend within three years mobile service to Manitoba, which saw the rolling out this spring of both Freedom and Fizz; that it offer competitive 5G plans, which include U.S. roaming at a $50 price point; offer new non-5G plans with nationwide roaming for at least 20 per cent less than benchmark plans, which go as low as $19; and that it preserve jobs and implement the necessary investment and roll-out strategies to lower prices for wireless services.
Freedom has, in fact, maintained lower wireless prices so long, equity analysts were concerned about how long it would be able to maintain them. Its average revenue per user in the last quarter was $35, significantly lower than its competitors, which normally hover around the mid-$50 mark.
But the Montreal-based company said this is all part of its subscriber acquisition strategy that it hopes to sustain when it begins implementing its bundling strategy that leverages the wholesale internet regime.
