Madam Chair, thank you.
My name is Pierre Karl Péladeau, and I am the president and CEO of Quebecor. With me today is Peggy Tabet, vice-president of regulatory and environmental affairs.
A few weeks ago, the CRTC held its hearings on the Rogers–Shaw deal. Quebecor did not participate in the hearings because we believe our issues have more to do with telecommunications than with broadcasting. We did not weigh in on the proposals put forward by Rogers regarding local news; nor will we do so today.
However, what I can tell you is that the CRTC is doing nothing to ease the regulatory burden on Canadian companies operating in an increasingly vulnerable sector. The television and local production sector is being undermined economically and financially, with local news and the entire news industry paying the price. The industry plays an essential role in upholding a strong and vibrant democracy, but it's survival is at stake, unless everyone wants CBC/Radio‑Canada to be the only one fulfilling that mission.
Bill C‑11 must take that into account. The regulatory and financial burden on broadcasting undertakings is no longer sustainable. The regulation of basic services, the requirements to contribute to a range of funds, expensive regulatory fees, broadcasting and spending quotas for Canadian programming, and endless reporting are just some of the conditions we must adhere to.
According to the Académie de la transformation numérique, 2021 marked the first time that more Quebec households had online video service subscriptions than cable TV subscriptions—71% versus 66%. That means less and less funding is available for the Canada media fund, since the web giants—Google, Amazon, Facebook, Apple and Netflix, a.k.a. GAFAN—make no contribution whatsoever to the Canadian production ecosystem. Less funding means less local production, more foreign production and, of course, less local economic activity.
In the face of such worrisome data, how can broadcasting undertakings and local news survive under the weight of so much bureaucracy, while GAFAN operates free and clear of the crippling and outdated regulatory controls? It is high time that we, too, enjoy the same regulatory and commercial freedom.
If you find the broadcasting picture I just painted troubling, I have some more insight to share. I'm referring to the major repercussions of the Rogers–Shaw deal for the entire broadcasting landscape.
Keep in mind that Videotron's entry into the cellular mobile telephone services market, in 2006, had a disruptive effect, and Quebeckers benefited. They were among the first in the country to pay 35% to 40% less for wireless service than consumers in the rest of Canada. In recent years, the company has invested more than $4 billion to build a robust and powerful network, complemented by outstanding customer service. At the same time, Videotron has been a driver of innovation, creating Fizz, Canada's first all-digital mobile and Internet service brand.
Those achievements are all thanks to the measures put in place by the federal government, in 2007, aimed at breaking up the oligopoly of the big three telecommunications companies. Under the measures, Quebecor was able to acquire blocks of spectrum in the last auction with a major investment of nearly $830 million, which will help it expand its wireless offering in Canada. Quebecor will also be actively participating in the next auction and urges the government to keep these pro-competitive measures in place.
The oligopoly of the big three still holds 90% of the wireless market, so whether they like it or not, the policy to set aside wireless spectrum for new competitors is paramount if a strong fourth player is to emerge in every region of Canada.
With the right conditions and a swift decision from the CRTC on the terms for mobile virtual network operators, Videotron is the best player to foster real competition throughout Canada and drive innovation.
Thank you, Dr. Fry.