The head of Rogers Communications Inc. pledged to lower costs for customers and brushed aside competition concerns after the company closed its $26-billion purchase of Shaw Communications Inc. on Monday.
91裸聊视频淲hat we want to make sure we get right is all the things for our customers, and in particular, affordability,91裸聊视频� Rogers CEO Tony Staffieri said in an interview.
91裸聊视频淥ne of the key pluses of this is that competition is going up, especially in the west, and prices are going to come down.91裸聊视频�
The deal, which was first announced in March 2021, cleared its final regulatory hurdle last week after Industry Minister Fran莽ois-Philippe Champagne agreed to the transfer of Shaw-owned Freedom Mobile91裸聊视频檚 wireless licences to Quebecor Inc.91裸聊视频檚 Videotron.
But though he signed off on the deal, Champagne issued a stern warning to the companies involved as he announced 21 91裸聊视频渆nforceable91裸聊视频� conditions that Rogers and Videotron must adhere to, aimed at bolstering competition and reducing costs for customers.
Staffieri noted that the conditions formalized many of the commitments Rogers had made in the two years leading up to Ottawa91裸聊视频檚 approval, including the establishment of a second headquarters in Calgary and adding 3,000 new jobs based in Western Canada.
Rogers must also spend $5.5 billion to expand 5G coverage and additional network services, as well as a further $1 billion to connect rural, remote and Indigenous communities.
In addition to the creation of digital and technology positions focused on 91裸聊视频渂uilding networks,91裸聊视频� Staffieri said Rogers also plans to add more 91裸聊视频渃ustomer-facing91裸聊视频� jobs. He said those should be expected 91裸聊视频渞ather quickly,91裸聊视频� though when pressed on a timeline he pointed to the five-year timeline set out in the agreement.
The CEO said he planned to fly to Western Canada on Tuesday morning, where he will make stops in Vancouver and Calgary, to get the ball rolling.
91裸聊视频淲e fully expect Canadians to hold us accountable to do all the things we said we were going to do and we91裸聊视频檙e very proud to do it,91裸聊视频� Staffieri said.
In an attempt to ease competition concerns raised by the original proposal, Rogers and Shaw agreed in June 2022 to sell Shaw91裸聊视频檚 Freedom Mobile business to Videotron for $2.85 billion. Freedom91裸聊视频檚 sale was also finalized on Monday.
As part of Videotron91裸聊视频檚 conditions, the company must offer plans that are at least 20 per cent lower than its competitors and spend $150 million over the next two years to upgrade Freedom Mobile91裸聊视频檚 network.
If Rogers breaches its conditions, it must pay up to $1 billion in damages. Videotron would potentially be subject to $200 million in penalties if it fails to meet its commitments.
91裸聊视频淲e are very pleased to be closing the acquisition of Freedom Mobile today, bringing its Canadian footprint as well as the expertise and experience of its employees into our fold,91裸聊视频� said Quebecor president and CEO Pierre Karl P茅ladeau in a news release.
91裸聊视频淭he alliance of Freedom and Videotron will permanently transform Canada91裸聊视频檚 wireless market for the benefit of consumers and create a new competitive environment that delivers innovative products and services at better prices.91裸聊视频�
Champagne also announced his department would not allow any further transfers of wireless spectrum until it completes a review of Canada91裸聊视频檚 spectrum transfer framework.
Staffieri disputed some critics91裸聊视频� characterization that the takeover would harm competition in Canada91裸聊视频檚 telecommunications sector. He said Rogers looks forward to competing with the revamped Videotron.
91裸聊视频淭his whole transaction has always been about increasing competition and ultimately, that91裸聊视频檚 what the federal courts found 91裸聊视频� that the series of transactions, namely us buying Shaw and Quebecor buying Freedom, was going to increase competition in the marketplace,91裸聊视频� he said.
91裸聊视频淚f we were to look to south of the border, there you91裸聊视频檒l see a market size 10 times that of Canada, and they have three players. So in fact, we have even more players in the telecom space than you would see in the U.S., and if you compare it to others in the world, we have amongst the most competition in all of our markets.91裸聊视频�
91裸聊视频擲ammy Hudes, The Canadian Press
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