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

Just Posted

princess margaret
Penticton high school has COVID-19 exposure days

Princess Margaret Secondary had potential days of exposure May 10-12

Brandon Messier of Messier’s Concrete and Landscaping has added some unique, glowing features to his front yard at 28 Huth Ave. (Submitted)
PHOTOS: Glowing boulders popping up in Penticton yards

Local landscaper Brandon Messier also brought the Lost statue to its new home

There is nothing left of a structure that burned down in rural Summerland Saturday night. (Monique Tamminga Western News)
Nothing left at fire scene in Summerland

Summerland firefighters arrived when the structure was fully engulfed in flames

Penticton city parks staff were busy this week using the beach grater to sift through sand, getting the shores ready for beach season. When it comes to beach clean up they are collecting run-off debris, pulling weeds and picking up litter. (Penticton photo)
Hottest day of the year, so far, in the South Okanagan

Penticton city park staff cleaned up the beaches getting ready for the season

Discovery House executive director Jerome Abraham in front of the third building, Parkers Place, for the addiction recovery program. (Brennan Phillips - Western News)
Discovery House opens Parkers Place in Penticton to provide transitionary care

The addiction recovery program is now able to provide support for as long as necessary

‘COVID to COVID’ lung transplant patient says he’s grateful at a May 14, 2021, news conference in Chicago. (CP screenshot)
‘COVID to COVID’ lung transplant patient grateful

Renato Aquino became sick from COVID-19 in May 2020

This bird box at the Salmon Arm Foreshore lies broken on May 14, 2021 after someone pulled the pole out of the ground and smashed the formerly occupied nest. It was one of more than 30 that have been wrecked. (Martha Wickett-Salmon Arm Observer)
Destruction of nests, birds at Salmon Arm foreshore described as horrifying

More than 30 bird boxes made by community destroyed, just one was not occupied

Ranchero resident Cody Krabbendam proudly displays the Lifesaving Society awards he recently received for a rescuing another boy while swimming at Sicamous Beach in July 2020. (Contributed)
Shuswap boy receives medal of bravery, scholarship for rescue at Sicamous beach

Last summer Cody Krabbendam jumped into the lake to save another boy from drowning

A pedestrian wearing a mask to curb the spread of COVID-19 is bundled up for the cold weather as snow falls in downtown Vancouver on Saturday, February 13, 2021.THE CANADIAN PRESS/Darryl Dyck
Snow possible in mountain passes as cold front hits southern B.C.

Much of B.C.’s southern interior will see temperatures plunge from highs of 30 C reached over the weekend

File photo (Aaron Hemens/Capital News)
Overturned kayak in Kelowna creek prompts police response

Kelowna RCMP is looking to speak with anyone who may know the individual associated with the kayak

Penticton city parks staff were busy this week using the beach grater to sift through sand, getting the shores ready for beach season. When it comes to beach clean up they are collecting run-off debris, pulling weeds and picking up litter. (Penticton photo)
Hottest day of the year, so far, in the South Okanagan

Penticton city park staff cleaned up the beaches getting ready for the season

Sicamous RCMP Sgt. Murray McNeil and Cpl. Wade Fisher present Cody Krabbendam of Ranchero with an award for bravery on July 22, 2020. (Contributed)
B.C. boy receives medal of bravery, scholarship for rescue of child at Shuswap beach

Last summer Cody Krabbendam jumped into the lake to save another boy from drowning

Coldstream Fire Department is on-scene Sunday, May 16, battling a fire in a Matner Lane orchard just up the hill from the firehall on Aberdeen Road. (Jennifer Smith - Morning Star)
Okanagan fire crew tackles orchard blaze

Fire broke out just before 2 p.m. on Matner Lane, which is just up the hill from the Coldstream firehall on Aberdeen Road

Most Read