Mark Evans

Videotron Raises Prices

Is Videotron
trying to escape its discount ways in the local telephone market? It
depends on how you look at the cableco's decision to rase its
long-distance plan within Quebec to $7.95 a month from $4.95, and the
price of its 1,000-minute North American LD plan to $10 from $5. It
looks like Videotron is trying to move up the price food chain without
admitting its deep discount plan of  $15.95 a month was a
strategic mistake. That said, Videotron has attracted more than 75,000
local customers since it moved into the phone business eight months ago
so the low prices have been a success. There are many people, however,
who believe Videotron is leaving money at the table so higher LD prices
is a quasi-subtle way to claw back from revenue.