MPs will discuss the deal on Monday, letter says
By Ahmad Hathout
OTTAWA — Five members of Parliament sent a letter dated today to Innovation Minister Francois-Philippe Champagne urging him not to approve the transfer of Freedom’s spectrum assets to Videotron until a “free and open” process, approved by the Competition Bureau, is held to determine the suitor of the assets.
During a House industry committee hearing Wednesday, some MPs were concerned as to how Rogers ended up getting to pick Videotron as the buyer of Freedom to complete its acquisition of Shaw (the bureau has remained steadfast in its disapproval of the transfer). Other competitors for Freedom were once Distributel, which is in the midst of being acquired by Bell, and investment firm Globalive, itself still interested in Freedom and which has recently bid for Xplore Mobile’s Manitoba spectrum.
“In testimony at the Committee, it has become obvious that the divestiture of Freedom Mobile was not a free and open process, and the result is that the largest market share holder for telecommunications in Canada was able to pick its competitor without the approval of the Competition Bureau through its remedy process,” the letter said.
“The Competition Bureau is supposed to protect Canadians from anti-competitive business practices and mergers. They are the voice of the consumer in a business world solely focused on profits and bottom lines. A major corporation being allowed to bypass their oversight will set a dangerous precedent and could be disastrous for competition in Canada,” the letter said, claiming Canadians “currently pay the highest cell phone and wireless rates in the world.”
One witness in Wednesday’s hearing, Keldon Bester of the Canadian Anti-Monopoly Project (CAMP), warned of bolder acquisitions if this one is allowed through. Anthony Lacavera, founder and chairman of Globalive, a funder of CAMP, said during the hearing that the Rogers-Shaw deal should be blocked, and Shaw should be allowed to conduct an open and fair process to sell Freedom.
Rogers’s president and CEO Tony Staffieri defended the deal at the hearing, saying Videotron was the most “credible” company available at the time and it “met the criteria” for a competitive player in the market.
The letter also urges Champagne to let the CRTC review an application by independent telecom TekSavvy to run its course before making a decision. The application alleges that Rogers’s deal with Videotron to provide the Montreal-based company with cheaper wholesale access to its network is giving the company an undue preference over competitors. TekSavvy alleges there are more such deals in the industry and a review is required.
The letter is signed by Conservative MP and Innovation Canada Shadow Minister Rick Perkins, Conservative MP Ryan Williams, Conservative MP Brad Vis, Conservative MP Bernard Genereux, and NDP Innovation Critic Brian Masse.
