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Development of a wireless network |  Videotron sues Rogers

Development of a wireless network | Videotron sues Rogers

A 20-year partnership signed in 2013 by Videotron and Rogers to jointly develop a 4G LTE wireless network in Quebec and the Ottawa region is turning into a fierce trade dispute.




Richard Dufour

Richard Dufour
Press

In a lawsuit filed Friday by Videotron in the Superior Court of Quebec, Quebecor’s main subsidiary claims 850 million from Rogers, reports the National mail. Videotron accuses Rogers of breach of contract and bad faith in connection with negotiations held in the context of the agreement to operate a joint network in Quebec that was unveiled eight years ago.

Always according to the Mail, Videotron alleges that Rogers created a dead end by establishing a parallel network covering the province of Quebec and the Ottawa region when the two companies were negotiating to upgrade their joint network, which would violate their agreement.

At the time of publication, despite several requests, Quebecor had refused to forward a copy of the request to Press.

A major disagreement between the two parties would include, among other things, the scale of investments required to develop the joint network and ensure it is competitive, according to a source familiar with the dispute who cannot be identified because it is not. He is not allowed to speak publicly about the case.

Also according to this source, Rogers would have learned through the voice of the media two years ago that Videotron himself was developing a parallel network.

In fact, in December 2019 a partnership between Videotron and Samsung was announced for the deployment of a 5G network.

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The agreement announced in 2013 was unique because it provided for the exchange of equipment, but also of frequencies. Each operator was responsible for certain regions.

“Unfortunately, Videotron has decided not to join us in investing in network improvements in Quebec. This decision is not in the best interest of our customers and is inconsistent with our goals of providing our customers with superior connectivity, ”Rogers management said in an official statement sent to Press by email on Friday. At the time, Rogers had not yet been able to see the application.

“Regarding Videotron’s claim, we will respond to it in more detail in court,” he added.

Rogers also argues in his email that the company is investing billions of dollars in infrastructure to provide the “best possible service experience.” “These investments continue to grow as we improve connectivity for Quebec families and businesses and accelerate the deployment of 5G technology to connect more communities in Quebec. ”

This commercial dispute between Rogers and Videotron comes as a power struggle breaks out in Rogers between members of the company’s founding family and as Rogers awaits regulatory approval to complete the acquisition of Shaw Communications.

Rogers had tried to acquire Videotron in the early 2000s. Then Quebecor had partnered with the Caisse de depot et location du Québec to buy Videotron and thus outwit Rogers.