If it doesn’t, Quebecor is on the hook for $25 million in penalties each year the company infringes on the agreement, up to a maximum of $200 million for the 10 years that the deal lasts. The contract also stipulates that Quebecor must invest more than $150 million to upgrade Freedom’s wireless infrastructure within two years and maintain the spectrum licences for at least 10 years.
Michael Geist, a law professor at University of Ottawa said that the contracts might help bring prices down in the short term, but that in the long term, he’s skeptical that the deal will result in meaningful change. “ have to make these investments. Assuming they do … they still have an obligation to their shareholders to generate a return,” he said.Article content
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