“I think they’d better listen,” minister says
OTTAWA – Industry minister François-Philippe Champagne today announced the terms he wants to see in place as he considers whether to approve a deal between Rogers Communications, Shaw Communications and Quebecor, which would see Shaw’s Freedom Mobile sold to Quebecor subsidiary Videotron in an attempt to alleviate concerns about the impact of the merger of Rogers and Shaw on wireless competition in Canada.
The minister, stating he is officially denying the request by Rogers to acquire Shaw’s spectrum licences, announced “the lens” through which he is considering the proposal for Videotron to acquire Shaw’s Freedom Mobile.
“First, I’m giving notice that any new wireless licenses acquired by Vidéotron will need to remain in their possession for at least 10 years. A new service provider needs to be in it for the long run,” he said. “Second, I would expect to see prices for wireless services in Ontario, and Western Canada, comparable to what Videotron is currently offering in Quebec, which are today on average, 20% lower than in the rest of Canada.”
The minister explained “Canadians deserve world class networks and access to wireless services at affordable and competitive prices – I am resolved to achieve these objectives.”
During a Q&A with media, Champagne noted there are different process involved, including with the Competition Bureau and Competition Tribunal, but he is using today to send a message that on his end, he wants those involved to know “if you’re looking at your business plan, and you want to come to me, make sure that you have considered these two things because … those are the two things that I’m going to be looking at, and I’m the one who needs to sign the transfer of the licence.”
“I hope they’re watching TV tonight because they know me by now, when I am telling them those are my expectations and I think they better listen,” he said.
In response to the minister’s announcement, Pierre Karl Péladeau, president and CEO of Quebecor, said in a statement they are pleased with the remarks.
“We intend to accept the conditions stipulated by the Minister and incorporate them into the new version of the Rogers-Shaw/Quebecor-Freedom Mobile transaction, which has already been negotiated,” he said.
“They are in line with our business philosophy, which has proved highly successful in Quebec, where we have taken a significant market share in a very short span of time. We will work to deliver better prices for Canadians in the other provinces and to end the reign of the ‘Big 3’ by promoting competition, the public interest and the digital economy in Canada.”
