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Canadian media company Quebecor to spend $1 billion on HSDPA wireless networks |
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Quebecor Inc. says its Quebec-wide cellular service will be ready in 12 to 18 months, and will offer "the best service at the best price" to customers. The company, which owns cable provider Videotron, said it will spend up to $1 billion over four years to build the wireless network.
These were the first details Quebecor has unveiled about its future service since it bought enough wireless licenses to cover Quebec and parts of eastern Ontario.
The company spent $555 million during an auction for new wireless spectrum this past summer put on by Industry Canada. Another $255 million will go into building the network.
Although it promised lower prices compared with those of incumbents Bell Mobility, Rogers Wireless and Telus Mobility, the company would not specify any amounts.
However, a report by research group Convergence Consulting predicted that Quebecor will benefit from discounted bundles with Videotron's Internet, TV, and home phone services, capturing 30 per cent of the Quebec market by 2015.
The report predicts that Quebecor, along with other new entrants, will undercut incumbents by 40 per cent.
On the technical side, Quebecor will adopt the wireless technology called High Speed Packet Access (HSPA), the same technology that is used by Rogers, and soon by Bell and Telus to offer high speed internet access.
Quebecor will also make available content from its media assets, including TVA and Journal de Montréal.
UBS Securities analyst Jeffrey Fan maintained a "buy" rating on Quebecor Inc. shares, assuming average revenue per user of $40 to $45 for the wireless business.
No details on the vendors or HSDPA equipment was announced. It is speculated that it will be NSN (Nokia Siemens Networks) or Ericsson Telephone Company, that has a strong presence in the Canadian telecom market.
By The Gazette (Source: www.canada.com)
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| 23/10/2008 |
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