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

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

Academics, smaller telecoms say Rogers shouldn’t be allowed to buy Freedom Mobile

Ben Klass said the government needs to stick with aiming for a fourth wireless carrier in every region

Rogers Communications Inc. shouldn’t be allowed to buy Canada’s 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 Canada’s largest internet network, University of Ottawa law professor Michael Geist said regulators should require a spinoff of the wireless assets before approving the deal.

“While 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,” Geist said, echoing other opponents of the deal.

“If 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.”

Shaw chief executive Brad Shaw and Rogers CEO Joe Natale told the same committee on March 29 that they’d 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 wasn’t big enough on its own to fund the enormous investments required to build fifth-generation wireless networks.

Under questioning, Geist — an expert in internet and e-commerce policy — said the “most palatable” outcome would be to have Shaw and Freedom to remain independent rivals to Canada’s biggest three biggest telecommunications companies.

“Shaw is a viable, innovative competitor,” Geist said. “So taking them out of the market … is a loss ultimately for consumers.”

Ben Klass, a member of a research team studying ownership concentration in Canada’s 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.

“What we’re left with is Freedom (in Ontario, Alberta and B.C.) Videotron in Quebec, Eastlink in the Maritime provinces,” Klass said.

“If this merger is allowed, it would be tantamount to the government’s admission that they’re no longer interested in supporting real competition in this space.”

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.

READ MORE: Rogers plan to buy Shaw raises red flags about competition, especially in wireless

David Paddon, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Internet and Telecom

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

B.C. Cattlemen’s Association general manager Kevin Boon. (B.C. Cattlemen’s Association photo)
COVID, BSE, water access and private land rights: B.C. Cattlemen’s general manager weighs in

Kevin Boon said positive aspect of pandemic is more people interested in where their food comes from

B.C's COVID-19 dashboard shows the peaks and valleys of cases prior to the record daily report of 132 on April 9, 2021. (Dashboard image)
Interior Health has record day of COVID-19 cases

132 cases reported Friday, April 9, more deaths in Vernon hospital outbreak

The BC Wildfire Service will be partnering with Simpcw First Nation this month in the implementation of a prescribed burn next to their community of Chu Chua. The controlled burn will be highly visible to Highway 5 and all communities in the immediate area. Pictured is a prescribed burn that took place on the Kanaka Bar Reserve last month in partnership with the Kanaka Bar Band and BC Wildfire Service. (BC Wildfire Service Facebook photo)
Simpcw and BC Wildfire Service to hold controlled burn near Barriere

Burn will be highly visible to Chu Chua, Barriere, Darfield, Chinook Cove, Little Fort and Highway 5

District of Clearwater meetings are open to the public. The meeting agendas and past meetings minutes can be viewed on the DOC's website. Every meeting has time allocated at the end for comments from the public.
Clearwater to benefit from funding through Ministry of Tourism initiative

The District’s Trails Task Force was sucessful in securing a grant for $684,000.

Carlos Sigurnjak went missing about 4 p.m. on Tuesday, April 6, according to a Facebook post by his family. (Facebook/Carlos Sigurnjak profile)
UPDATE: Clearwater RCMP find missing man from Kelowna

Sigurnjak was found just before 2 p.m. April 8 by a passerby.

Burnaby MLA Raj Chouhan presides as Speaker of the B.C. legislature, which opened it spring session April 12 with a speech from the throne. THE CANADIAN PRESS
B.C. NDP promises more health care spending, business support in 2021 budget

John Horgan government to ‘carefully return to balanced budgets’

A lady wears a sticker given out after receiving a COVID-19 vaccine at a clinic in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS
B.C.’s COVID-19 case count slows after last week’s peak

3,219 new cases since Friday, 18 additional deaths

North Cowichan councillor Tek Manhas did not violate the municipality’s code of conduct by posting a sexist meme on Facebook, council concludes. (File photo)
B.C. municipality to take no action against councillor who posted sexist meme

Tek Manhas’s meme doesn’t violate North Cowichan council’s code of conduct, municipality concludes

—Image: contributed
Indoor wine tastings still allowed in B.C., not considered a ‘social gathering’

“Tasting is really just part of the retail experience. The analogy I use is you wouldn’t buy a pair of pants without trying them on.”

A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. The Canadian Federation of Independent Business is raising its estimate for the number of businesses that are considering the possibility of closing permanently. THE CANADIAN PRESS/Adrian Wyld
Small business struggling amid COVID-19 pandemic looks for aid in Liberals’ budget

President Dan Kelly said it is crucial to maintain programs to help businesses to the other side of the pandemic

The National Security and Intelligence Committee of Parliamentarians says that includes attempts to steal Canadian research on COVID-19 and vaccines, and sow misinformation. (AP Photo/Esteban Felix)
Intelligence committee warns China, Russia targeting Canadian COVID-19 research

Committee also found that the terrorist threat to Canada has shifted since its last such assessment

Part of the massive mess left behind in a Spallumcheen rental home owned by Wes Burden, whose tenants bolted from the property in the middle of the night. Burden is now facing a hefty cleaning and repair bill as a result. (Photo submitted)
Tenants disappear in the night leaving Okanagan home trashed with junk, feces

Spallumcheen rental rooms filled with junk, human and animal feces; landlord scared to rent again

Parliament Hill is viewed below a Canada flag in Gatineau, Quebec, Friday, Sept. 18, 2020. A new poll suggests most Canadians are feeling more grateful for what they have in 2020 as a result of COVID-19 pandemic.THE CANADIAN PRESS/Sean Kilpatrick
Canada’s greenhouse gas emissions increased slightly in 2019: report

2019 report shows Canada emitted about one million tonnes more of these gases than the previous year

Dr. E. Kwok administers a COVID-19 vaccine to a recipient at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. to register people ages 40+ for COVID-19 vaccines in April

Appointments are currently being booked for people ages 66 and up

Most Read