TELUS backs Cogeco mobile launch with network deal, $2bn plan

TELUS has confirmed it will act as the wholesale wireless provider supporting Cogeco's move into the Canadian mobile market under the CRTC's mobile virtual network operator (MVNO) framework.

The arrangement allows Cogeco to offer mobile services to customers in Ontario and Quebec, expanding beyond its existing internet and TV portfolio by leveraging TELUS' wireless infrastructure. Cogeco's launch of its wireless network is enabled by this revised regulatory structure, which is intended to foster stronger competition in the domestic telecommunications market.

Wholesale partnership

Under the new agreement, Cogeco will access the TELUS network in its core operating regions, supported by TELUS' broader national wireless expansion. Darren Entwistle, President and Chief Executive Officer at TELUS, said, "In honouring our regulatory obligations, TELUS is enabling Cogeco's wireless launch by providing wholesale access to our award-winning broadband wireless network. Indeed, Cogeco will be able to access TELUS' wireless network in Cogeco's incumbent operating territories in Ontario and Quebec, owing to TELUS' expansion of its original wireless footprint from Western Canada to national coverage."

"This exemplifies our longstanding commitment to expanding reliable connectivity and fostering healthy competition for Canadians. In turn, we urge the same spirit of fairness in wholesale fibre access for TELUS across Eastern Canada, so that all Canadians, regardless of geography, can benefit from greater choice, innovation and affordability."

This network access is made possible through the Canadian Radio-television and Telecommunications Commission's (CRTC) MVNO regime, which allows companies without their own wireless infrastructure to offer mobile services by purchasing wholesale access to larger carriers'

networks. The framework is intended to result in more choice for consumers and increased competitive dynamics in markets historically dominated by a limited number of large operators.

Ongoing investment

In tandem with this partnership, TELUS has announced an additional $2 billion investment over five years focused on further extending its PureFibre network in Ontario and Quebec. The initiative is part of the company's broader $70 billion plan, declared earlier, intended to strengthen broadband access, foster competition and improve connectivity across Canada. The effort aims to offer consumers new, integrated bundles combining fibre and wireless connectivity with services such as smart home energy management, healthcare, security, and entertainment.

TELUS states its latest investment builds on more than $276 billion committed to Canadian communications and technology infrastructure since 2000.

Regulatory context

Beyond the wireless partnership, TELUS has signalled concerns over ongoing policy debates surrounding wholesale access to fibre networks, particularly restrictions on TELUS' ability to access fibre outside its traditional operating areas. In the press announcement, the company suggests that restricting fibre wholesale access would create an unbalanced regulatory environment and limit consumer benefits.

The company argues that the principles currently applied to wireless access should extend to fibre: "While we're proud to open up our award-winning network to competitors, it's critical for Canadians to know that many carriers are still trying to urge the Canadian government to overturn the CRTC's wholesale regime, limiting TELUS' access to fibre networks outside our traditional operating territory. This would be a very asymmetrical approach to policy - and one that ultimately shortchanges consumers."

The company maintains that a symmetrical approach to wholesale access is necessary to maximise benefits for end-users. "TELUS remains a strong advocate for policy and regulatory environments that ensure fairness, transparency, and national consistency in wholesale access. When competition is symmetrical, Canadians across the country are the ultimate beneficiaries."

Market implications

The announcement comes as calls for competition intensify amid heightened cost of living pressures. TELUS contends that the consumer benefits associated with wholesale access regimes are now beginning to materialise after years of policy debate. "In the rapidly evolving telecom landscape, wholesale access is not new, but the benefits to consumers are just now beginning to be felt after decades of policy debate. Surely, during this cost of living crisis, now is the time to prioritise increased competition."

In summary, with Cogeco's entry into the wireless market now enabled by the MVNO policy and TELUS' network, there are ongoing implications for competition and regulatory policy concerning wholesale access frameworks in Canada's telecommunications sector.