(Montreal) Quebecor wants to extend its Fizz brand to the rest of Canada and is preparing to launch its entirely online concept in Western Canada “in the coming weeks”.
The president and CEO of Quebecor, Pierre Karl Péladeau, revealed his intentions for the Fizz brand during a conference on Tuesday in front of the Canadian Club in Toronto.
The Montreal company is preparing to launch the Fizz brand in Vancouver, Edmonton and Calgary “in the coming weeks,” the manager announced. “This is the beta phase of the launch, people who subscribe will be able to benefit from a discounted package. »
He also discussed the “gradual” launch of the brand across Canada in 2024. “Be ready! “.
With its entirely online model, the Fizz brand offers wireless telephone and internet subscriptions at lower prices thanks to lower operating costs.
Earlier in November, Quebecor finance chief Hugues Simard acknowledged that Fizz was contributing to the company’s decline in revenue per subscriber. “It reduces our revenue per subscriber due to lower prices, but operating costs are lower, which helps maintain our margins. Ultimately, we focus on profitability. »
Quebecor’s Canadian expansion has been closely watched by analysts since the $2.85 billion acquisition of Freedom Mobile was completed in April. The company identifies the market outside Quebec as an avenue for growth while its activities mature in Quebec.
National Bank Financial analyst Adam Shine points out that the company has given few details about its intentions in Western Canada and that its attention seems focused on Ontario for the moment. “More details are expected in due course. »
Telus appears to have prepared for a possible incursion by Quebecor into the west by making Public Mobile an entirely online brand, says Mr. Shine.
For his part, Scotiabank analyst Maher Yaghi does not expect prices to drop further in the rest of Canada as a result of competition from Quebecor. “With the prices offered by Freedom, the company is approaching the break-even point, where it would offer its service at a loss. We do not think that Freedom will make a more intense offensive on prices, otherwise it would be at a loss and the company wants to avoid this situation in order to repay its debt. »
“Quebecor’s results show that it is adding more new subscribers,” continues the Scotiabank analyst. This should reduce pressure on management, which would not need to reduce prices even further. »
