Moore’s Public Mobile comments draw jibes from telco analyst

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One of Bay Street's most senior telecom analysts is poking fun at Industry Minister James Moore for comments he made about Telus Corp.'s decision to shut down Public Mobile's wireless network.

Mr. Moore, who is taking a consumer-first approach to the federal government's wireless policies, was reacting to Telus's plans to shift Public Mobile customers onto its 4G (fourth-generation) wireless network.

The move, which will take place over the coming months, is raising the ire of consumer advocates because it forces Public Mobile's customers, often low-income Canadians, to buy new cellphones in order to maintain service.

Although Telus is offering discounts on new phones and one month of free service to help offset the costs, some consumers are angry and complaining to Canada's Commissioner for Complaints for Telecommunications Services.

"Seems like an odd business decision to alienate thousands of Public Mobile users as you absorb Public Mobile itself," Mr. Moore told The Globe and Mail while on a trade mission in Germany.

"Ultimately it's a business decision I'll leave for Telus to explain."

Those remarks prompted Dvai Ghose of Canaccord Genuity to tease Mr. Moore for his stance.

"We find Moore's comments to The Globe amusing," Mr. Ghose wrote in a research note to clients on Friday.

He later added: "Moore questions the business rationale of Telus's decision despite his lack of any experience in running a wireless company and Telus's success. Surely Moore understands that the obvious drivers of Telus's acquisition of Public Mobile were its spectrum and tax losses, not its subscriber base and that Public Mobile's pricing was unsustainably low."

Both Mr. Moore and the federal Competition Bureau gave their blessing to Telus's purchase of Public Mobile late last year, stating the move would not diminish competition in the wireless sector.

With files from reporter Steven Chase