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Academics, smaller telecoms say Rogers shouldn91裸聊视频檛 be allowed to buy Freedom Mobile

Ben Klass said the government needs to stick with aiming for a fourth wireless carrier in every region
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A woman holds two cellphones with the corporate logos of Rogers Communications and Shaw Communications in a photo illustration in Chelsea, Que., Monday March 29, 2021. A review of the proposed $26-billion purchase of Shaw Communications by Rogers Communications continues into its third day today in Ottawa before a committee of federal MPs. THE CANADIAN PRESS/Adrian Wyld

Rogers Communications Inc. shouldn91裸聊视频檛 be allowed to buy Canada91裸聊视频檚 fourth-largest wireless service, Freedom Mobile, because it would undo attempts improve prices and services through competition, experts in telecommunications policy told MPs on Tuesday.

In a third day of hearings into the Rogers proposal to buy Shaw Communications Inc., which owns Freedom and Western Canada91裸聊视频檚 largest internet network, University of Ottawa law professor Michael Geist said regulators should require a spinoff of the wireless assets before approving the deal.

91裸聊视频淲hile some seek to justify it or explain it away, the simple reality is that Canadians already pay some of the highest prices for wireless services in the world,91裸聊视频 Geist said, echoing other opponents of the deal.

91裸聊视频淚f this merger is approved, the situation is likely to get worse. Indeed, when Rogers promises that it will not raise prices for Shaw Freedom Mobile customers for three years, it effectively signals that it will be raising them as soon as the clock runs out on that time.91裸聊视频

Shaw chief executive Brad Shaw and Rogers CEO Joe Natale told the same committee on March 29 that they91裸聊视频檇 be stronger competitors to Bell and Telus by combined their spending power and assets. That would allow the combined company to reach more rural and underserved areas, they said.

Brad Shaw also said the company founded by his father J.R. Shaw just wasn91裸聊视频檛 big enough on its own to fund the enormous investments required to build fifth-generation wireless networks.

Under questioning, Geist 91裸聊视频 an expert in internet and e-commerce policy 91裸聊视频 said the 91裸聊视频渕ost palatable91裸聊视频 outcome would be to have Shaw and Freedom to remain independent rivals to Canada91裸聊视频檚 biggest three biggest telecommunications companies.

91裸聊视频淪haw is a viable, innovative competitor,91裸聊视频 Geist said. 91裸聊视频淪o taking them out of the market 91裸聊视频 is a loss ultimately for consumers.91裸聊视频

Ben Klass, a member of a research team studying ownership concentration in Canada91裸聊视频檚 telecom and media industries, said the government needs to stick with aiming for a fourth wireless carrier in every region.

Most of the new wireless competitors that emerged in 2008 and 2009 have been absorbed by the Big Three. Shaw bought the largest independent, Wind Mobile, rebranding it as Freedom after the 2016 purchase.

91裸聊视频淲hat we91裸聊视频檙e left with is Freedom (in Ontario, Alberta and B.C.) Videotron in Quebec, Eastlink in the Maritime provinces,91裸聊视频 Klass said.

91裸聊视频淚f this merger is allowed, it would be tantamount to the government91裸聊视频檚 admission that they91裸聊视频檙e no longer interested in supporting real competition in this space.91裸聊视频

The deal announced March 15 needs regulatory approval to go forward. Key officials, including the federal competition commissioner, are scheduled to address the committee on Wednesday.

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David Paddon, The Canadian Press


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