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For years the federal government has sought to help give consumers a better deal by introducing new policies to make it easier for a viable fourth national provider to emerge, but so far with only limited success. Of those that entered the market since 2008 only two remain, and both are facing financial challenges, with Mobilicity in creditor protection and Wind looking for a new investor.

Mr. Dion said the central challenge for newcomers is that they are hobbled in their ability to compete by issues like excessive roaming rates charged by the incumbents that make it difficult to provide national service.

The solution, he said, is “to insist on a level playing field, one on which consumers are not penalized by unjust inter-carrier charges.”

The question now is whether Ottawa will welcome the Quebecor proposal, given Mr. Péladeau’s political affiliations and the strong possibility that he will become the next leader of the Parti Québécois.

But the truth is that if the government is hoping to score a victory with its plan to bring in new wireless competition, it is running out of time and options. The sector is still dominated by a few giants who, according to critics, have little interest in major change.

In other words, if the Conservative government wants to follow through on its policy, Quebecor may be its last best hope.

Earlier this year, Telus was forced to abandon its attempt to acquire ailing Mobilicity after Ottawa reportedly warned of stiff consequences if it went ahead. Mobilicity, an independent upstart, holds spectrum set aside for new competitors and government officials didn’t want to see that valuable asset fall into the hands of an incumbent. Such an event would have signaled the death knell for the government’s dream of wireless competition.

Analysts say that in order to move ahead with its plan, Quebecor needs the government’s blessing to acquire Wind or Mobilicity.

A spokesman for Industry Minister James Moore declined to comment, saying the department doesn’t discuss the decisions of private businesses.

“The bottom line is our wireless policies were designed with consumer interests up front,” said Jake Enwright.

Excerpt from Quebecor CEO Pierre Dion’s speech at the Canadian Telecom Summit: Today, we are even more convinced than ever that the wireless business, not only in our Québec base, but in the rest of Canada as well is the future. This year, Vidéotron spent a further $233 million acquiring 700 MHz wireless spectrum in Canada’s four most-populous provinces, addressing over three-quarters of the Canadian population. Put simply: Under the right conditions we are ready, willing and able to become Canada’s “fourth wireless competitor”. This brings the amount we have invested in wireless spectrum and networks to over $1.6 billion, and we stand poised to invest further in networks across Canada. We are already providing highly-competitive wireless plans to half a million Québec customers – and we are uniquely positioned to provide highly-attractive wireless plans to Canadians looking for top-quality service at very competitive prices. In addition to this, we are contemplating the possibility of consolidation with one or two of the undercapitalized new wireless entrants. If completed, this would allow us to almost triple our customer base. These consumers would enjoy top-quality wireless service at price levels that are highly competitive compared to the major service providers. Vidéotron is uniquely positioned to very effectively address the Canadian government’s stated policy objective of a serious fourth competitor in the markets where this is lacking – a fourth competitor who is experienced, well-financed, well-equipped, highly entrepreneurial and customer-focused. Allow me to summarize our vision as follows: Vidéotron’s plan is based upon achieving meaningful market penetration through offering Canadians outside Quebec the country’s best low-cost subscriber plans. The major investments we have made and intend to make in spectrum, expanded network and consolidation with willing partners, would enable us to deliver genuinely competitive, low cost, high quality wireless services to consumers. However to succeed in such an endeavour things need to change. Take for example the case of Wind. Wind’s limited Canadian coverage and Canada’s high roaming rates, mean Wind is still subject to the very high roaming charges imposed by Canada’s incumbent carriers. Despite this, Wind has already signed up 700,000 subscribers, a clear demonstration of market demand for service offerings priced more competitively than the high-cost ones provided by the incumbents.