BCE’s takeover of CTVglobemedia: Cogeco Cable asks CRTC to keep close watch to preserve competition and protect consumer interests
PRESS RELEASE
For immediate release
BCE’s takeover of CTVglobemedia: Cogeco Cable asks CRTC to keep close watch
to preserve competition and protect consumer interests
Montréal, February 2, 2011 – Cogeco Cable Inc. (TSX: CCA) appeared today before the
Canadian Radio-television and Telecommunications Commission (CRTC) in a public hearing
reviewing BCE’s takeover of CTVglobemedia. Cogeco Cable once again stressed the importance
of obtaining specific regulatory safeguards to prevent abuse of the dominant position that the new
conglomerate would have if BCE’s takeover of CTVglobemedia is approved.
In a presentation before the CRTC, Cogeco Cable President and CEO Louis Audet pointed out
that, “ultimately, Canadian consumers risk footing the bill for concentration and vertical integration
in the absence of greater oversight. The new conglomerate could sharply increase fees for
popular specialty channels, such as sports networks TSN and RDS. Consumer price inflation will
be even higher unless the new conglomerate foregoes collecting new fees for carriage of its
conventional television channels which are available free on the air.”
Mr. Audet also noted that, as COGECO indicated in the brief it submitted to the CRTC on
January 11, 2011, the combined BCE and CTVglobemedia entity will control both a large number
of television and content services, including sports services and programs, and a major share of
the distribution of such services and content across all wired and wireless distribution platforms in
the Canadian market, allowing it to exercise undue market power in the Canadian
communications industry.
Cogeco Cable submits that the CRTC should implement the appropriate regulatory measures to
avoid any abuse of the new conglomerate’s dominant position, without awaiting a new vertical
integration policy to be issued after public hearings later in 2011. “It’s crucial for competition in the
Canadian communications industry and, ultimately, for consumers, that the CRTC act
immediately to implement stringent and effective controls,” concluded Mr. Audet.
ABOUT COGECO CABLE
Cogeco Cable (www.cogeco.ca) is a telecommunications company and is the second largest
hybrid fibre coaxial cable system operator in Ontario, Québec and Portugal. Through its two-way
broadband cable networks, Cogeco Cable provides its residential customers with Audio,
Analogue and Digital Television, as well as HSI and Telephony services. Cogeco Cable also
provides to its commercial customers, through its subsidiary Cogeco Data Services, data
networking, e-business applications, video conferencing, hosting services, Ethernet, private line,
VoIP, HSI access, data storage, data security and co-location services and other advanced
communication solutions. Cogeco Cable’s subordinate voting shares are listed on the Toronto
Stock Exchange (TSX: CCA).
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Information: Marieke Tremblay
Tel.: 514-764-4700