Rogers, Shaw continue to work with government; Quebecor CEO weighs in
OTTAWA – Minister of Innovation, Science and Industry François-Philippe Champagne will not allow Rogers Communications to acquire all of Shaw Communications’ wireless licences, he said in a statement today.
“The wholesale transfer of Shaw’s wireless licences to Rogers is fundamentally incompatible with our government’s policies for spectrum and mobile service competition, and I will simply not permit it,” the statement reads.
Champagne noted the importance of access to Internet and wireless services and said the “government is making every effort to ensure that telecommunications services are reliable, innovative, competitive and—most crucially—affordable.”
He listed the government’s initiative to track and reduce cellphone prices, its investments through the Universal Broadband Fund and the Connecting Families Initiative to illustrate the government’s efforts.
“These programs, along with other actions like issuing binding policy direction to the CRTC to put consumers first, have laid the important groundwork needed to address affordability and competition in the sector,” Champagne said, while also noting there is still more to do.
“Within this context, many Canadians have expressed serious concerns regarding consolidation in the telecommunications sector, specifically regarding the proposed acquisition of Shaw Communications Inc. by Rogers Communications Inc. As I have noted before, I share these concerns,” he said.
Rogers and Shaw issued a joint statement in response.
“We continue to work constructively with the government and regulators to close this transaction and deliver the benefits of the merger to all Canadians,” the statement reads.
“We share the government’s view that affordable, high-quality services should be available to every Canadian and by coming together, Rogers and Shaw will make the generational investments in networks and technology that Canada needs to create new jobs, increase competition, and bridge connectivity gaps in rural and remote areas. We continue to expect the transaction to close in the first half of 2022.” (The transaction still requires approval from the CRTC, the Competition Bureau and Innovation, Science and Economic Development Canada.)
Quebecor also responded to the minister’s statement today, calling it a “step in the right direction.”
“As it stands, the proposed Rogers-Shaw transaction is contrary to the public interest,” said Pierre Karl Péladeau, president and CEO of Quebecor, in a press release.
“As Bell, Rogers and Telus already control 90% of Canada’s wireless market, it is imperative that we create the necessary conditions for real competition in order to give consumers more choice, better prices, better services and more innovation.”
Péladeau has previously been candid about his interest in acquiring Shaw’s wireless assets.
