Quebecor provides no justification or rationale in Vrai pricing dispute: Bell

BCE Inc. is arguing to the CRTC that Quebecor Inc. provided no justification or rationale to the commission for the pricing discrepancies between its Vrai hybrid video-on-demand (HVOD) service and its Vrai direct-to-consumer (DTC) service, which the incumbent says is giving Quebecor an undue preference. “In our submission, has not addressed the glaring retail pricing differences between the internet DTC and Videotron BDU offers for Vrai. Instead, their comments are limited to casting aspersions on Bell Media and Bell Canada,” Bell wrote in a Feb. 15 reply, after the regulator opened an expedited proceeding at the request of Bell, regarding a November complaint against its Vrai on-demand streaming service. The incumbent’s remarks were referencing Quebecor’s Feb. 10 French-language response to the commission in which it said Bell's arguments were “devoid of any merit and relies on an erroneous interpretation of regulatory principles.” Quebecor then proceeded to outline a list of some violations and anti-competitive acts it said Bell has committed over the past few years. “By pointing to other regulatory complaints or disputes, is attempting to deflect attention away from its own actions in this particular case,” Bell wrote. Quebecor also argued to the commission that Bell introduced different cost structures with its Crave Mobile product compared to its own Crave HVOD service. Bell refuted the argument in its reply, claiming that its Crave Total is “the only appropriate point of comparison for a service like Vrai” as Crave Mobile “is an entirely different offer.” In that vein, Bell argued that there is no price gap between the internet DTC and BDU offers for its Crave product, both of which, it said, retail for $20. “No BDU, including our own, has obtained a competitive advantage as a result of the way we have priced the internet DTC option for Crave Total, nor has any BDU been subjected to a disadvantage,” Bell argued. Bell did acknowledge that different retail prices or bundled offers for HVOD services can be provided but argued that “the intention and impact” of Quebecor’s distribution strategy put in place for Vrai gave the company undue preference. “ has purposefully set a retail price for the internet DTC version of Vrai that is more than double that for Videotron subscribers. By limiting BDU carriage to Videotron and setting a much higher retail price for Vrai internet DTC, all other consumers / non-Videotron subscribers have no option but to pay much higher subscription prices,” Bell argued. “In so doing, QMI has conferred a de facto advantage to its own affiliated BDU, subjecting competing BDUs to an undue disadvantage.” The Public Interest Advocacy Centre (PIAC) also intervened in the case, supporting Bell’s general complaint but arguing that Quebecor should be allowed to “expeditiously” revise its DTC offering rather than having to remove the service. Despite PIAC’s suggested resolution, Bell reiterated to the commission that it wants Quebecor to immediately remove the Vrai service from its Videotron BDU offering unless it provides a viable internet DTC option for Canadian consumers and non-Videotron subscribers. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca

Quebecor provides no justification or rationale in Vrai pricing dispute: Bell

Broadcast | February 24, 2022

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Quebecor provides no justification or rationale in Vrai pricing dispute: Bell

Broadcast | February 24, 2022

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

Technological change in broadcast, telecom worrisome to Unifor’s Lana Payne

Staff reductions hit Telus and Bell Media

Bell, Ziply file application to FCC for acquisition approval

CRTC approves sale of 21 BC radio stations from Bell to Vista

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us