Freedom Mobile owner Quebecor is set to spend over $700 million as it builds out network infrastructure ahead of the end of the mandated network access in 2030.
Quebecor confirmed the number to the Globe and Mail after CEO Pierre Karl Péladeau told the publication he expected capital expenditures of upward of $700 million before 2030. Specifically, Quebecor says it plans to spend $700 million this year and an additional $50 million per year for the next three years.
The news comes as analysts raised the spectre of mandated network access. Currently, federal policy requires Canada’s big telecom companies to allow Quebecor to use their networks, with regulators providing arbitration if companies can’t reach a deal.
However, that mandated access is set to end in 2030, and it’s not clear if the government will extend it. The Globe notes that Canadian Radio-television and Telecommunications Commission (CRTC) chair Vicky Eatrides said last year the commission plans to follow through on the scheduled end date. Despite that, analysts think the government may not rush to remove a policy that has put downward pressure on wireless prices.
Even if regulators follow through with ending mandated access, Freedom will still need to work with other providers to offer roaming agreements where it doesn’t yet have infrastructure or spectrum. That means it will need to negotiate, though it’s unclear if the company will be able to maintain favourable rates without the threat of arbitration.
Freedom Mobile has consistently undercut Canada’s Big Three telecom players and their various subsidiary brands on pricing, offering significant value to customers and putting pressure on pricing across the industry. Just last month, we saw Freedom repeatedly offer a $40/250GB CAN/US/MEX plan with global roaming features bundled in, forcing other wireless providers to cut pricing and offer deals in an effort to retain customers.
Further, Freedom advertises its ‘Price Freeze Promise,’ which says that customers’ wireless plan prices (before discounts and credits) “will never go up as long as [they] keep [their] plan.” It’s a big promise, especially as Canadians grow increasingly frustrated with regular price increases from the Big Three.
The strategy seems to be working well for Freedom, which now has 4.4 million wireless customers across Ontario, B.C., Alberta, Manitoba, and Quebec, per the Globe. And Quebecor’s share price has climbed 85 per cent since it acquired Freedom in 2023.
Source: The Globe and Mail
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