Videotron Update

As you are no doubt aware, our contracts for cable and the internet group expire at the end of January. We had an initial meeting with their representative before the Christmas holidays and have agreed to continue the process in January and, if necessary, beyond. (The last contract ended in September 2011 but it was only January 2012 before we could actually agree.)

This time, it is even more complicated because:

1. Videotron’s initial ask is for a 45% increase for our current TV package. Obviously, this is a problem for us as Cable TV alone would increase our total condo fees by 3.5%.
2. Our current standard definition TV package is technologically behind the times today and will be more so in the future.
3. Due to services such as Netflix and apps such as Kodi, “cord-cutting” (where people cancel their TV subscription) is an accelerating trend.
4. Our current internet group package is similarly behind the times in terms of speed and capacity. Negotiations last year to improve the offering ultimately did not bear fruit. Videotron acknowledges this and is prepared to offer more if we are prepared to raise the minimum number of members.
5. This could normally be acceptable for internet. However, if we do not come to a TV agreement, over time, we are bound to lose internet members to other providers as residents change their TV provider or new residents arrive with a different provider.
6. The CRTC has recently ruled that wholesale prices for internet must go down as internet is now considered a basic service in Canada. (A number of competitive providers have already announced lower prices as a result of this ruling.) This should help us in our negotiations.

In view of these elements, this is where we stand.

1. Our current TV and internet agreement will continue until we come to an agreement or conclude that an agreement will not be possible.
2. Given the gap between what we need and Videotron’s offering, it may be months before we can arrive at a decision.
3. We normally invoice a full year of internet on January 15^th. We will delay internet billing this year until we have a better idea of where we stand.
4. If we conclude that an agreement is not possible, our residents and internet group members will initially revert to direct subscriptions with Videotron at their usual retail prices.
5. Residents will then be free to do whatever they wish for TV and internet. However, this will only be if we determine that an agreement cannot be reached.