Wireless, broadcast key to grow Videotron

We will not target the same customers. We believe we can be successful in both segments.

Québecor Inc. is banking on new services in wireless and television broadcasting to fuel the growth of Vidéotron, while performance continues to slow in its media division. Ramping up for the launch of Fizz, a low-cost cellular and internet provider, and Helix, a new internet-connected television platform, the Montreal-based media giant said it is looking to increase the number of customers. Québecor’s new mobile phone plan provider aims to compete with brands such as Koodo, owned by Telus, and similar services from other telecom giants. Vidéotron’s share of the Quebec wireless market sits at around 17 per cent, compared with nearly 30 per cent for Bell. Outgoing Vidéotron chief executive Manon Brouillette aimed to reassure analysts, who asked if Vidéotron would cannibalize its current customers and spark a decline in average revenue per user when Fizz comes on the scene. “We will not target the same customers,” she said. “We believe we can be successful in both segments. Our challenge is to compete with other giants and their affiliates.” Vidéotron said it can reduce costs with Fizz since it is self-service and sells only online rather than in brick-and-mortar stores. In addition to low-cost plans, the conglomerate’s new service allows its users to roll over unused wireless data to the next month. “We will be able to generate significant margins thanks to this platform,” said the manager of the key Québecor subsidiary. Vidéotron added 41,500 mobile customers last quarter, helping to boost subscribers to more than 1.12 million. “Québecor has the potential to increase its market share in Quebec and we believe that there are interesting growth prospects for the next few years,” said Desjardins Capital Markets analyst Maher Yaghi, despite “disappointing media” revenue, which fell 8.5 per cent.