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

Tents set up under the Trail Skywalk earlier this spring. Photo: Trail Times
Message from Concerned Trail Citizens: ‘A Necessary Response’

” … if we are not part of the solution, we are part of the problem.”

“Think on These Things” is a column written by retired Creston pastor Ian Cotton. (File photo)
Think on These Things: Everyone is Invited

“Tell them there is healing, cleansing for every soul…”

Swiss guard at Vatican City. The Pontifical Swiss Guard is a minor armed forces and honour guards unit maintained by the Holy See that protects the Pope and the Apostolic Palace, serving as the de facto military of Vatican City. Photo: Etienne Girardet on Unsplash
News from The Vatican

Pope Francis issued a law decreeing that women can be installed in the lay ministries of lectors

North Okanagan business Hytec Kohler set up a COVID-19 vaccination clinic at the Spallumcheen plant Friday, May 14. (Jennifer Smith - Morning Star)
More than half of eligible adults in Interior Health vaccinated

Over 365,000 vaccine doses have been administered throughout the Interior Health region

Student-nurse Kendra Waterstreet administers the Pfizer vaccine to Litia Fleming at the Waneta Plaza vaccination clinic in the old Zellers buiding. Photo: Jim Bailey
Trail vaccination clinic readies for adults age 40+

B.C.’s state of emergency is extended through the end of day on May 25

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

A vial of AstraZeneca vaccine is seen at a mass COVID-19 vaccination clinic in Calgary, Alta., Thursday, April 22, 2021. Dr. Ben Chan remembers hearing the preliminary reports back in March of blood clots appearing in a handful of European recipients of the Oxford-AstraZeneca COVID-19 vaccine. THE CANADIAN PRESS/Jeff McIntosh
Science on COVID, VITT constantly changing: A look at how doctors keep up

While VITT can represent challenges as a novel disorder, blood clots themselves are not new

Poached trees that were taken recently on Vancouver Island in the Mount Prevost area near Cowichan, B.C. are shown on Sunday, May 10, 2021. Big trees, small trees, dead trees, softwoods and hardwoods have all become valuable targets of tree poachers in British Columbia as timber prices hit record levels. THE CANADIAN PRESS/Jen Osborne.
Tree poaching from public forests increasing in B.C. as lumber hits record prices

Prices for B.C. softwood lumber reached $1,600 for 1,000 board feet compared with about $300 a year ago

The warm weather means time for a camping trip, or at least an excursion into nature. How much do you know about camps and camping-related facts? (John Arendt - Summerland Review)
QUIZ: Are you ready to go camping?

How many camp and camping-related questions can you answer?

On Friday, May 14 at Meadow Gardens Golf Club in Pitt Meadows, Michael Caan joined a very elite club of golfers who have shot under 60 (Instagram)
Crowds at English Bay were blasted with a large beam of light from an RCMP Air-1 helicopter on Friday, May 14. THE CANADIAN PRESS/Marc Grandmaison
Police enlist RCMP helicopter to disperse thousands crowded on Vancouver beach

On Friday night, police were witness to ‘several thousand people staying well into the evening’

People shop in Chinatown in Vancouver on Friday, February 5, 2021. THE CANADIAN PRESS/Jonathan Hayward
Vancouver community leaders call for action following 717% rise in anti-Asian hate crimes

‘The alarming rise of anti-Asian hate in Canada and south of the border shows Asians have not been fully accepted in North America,’ says Carol Lee

Sinikka Gay Elliott was reported missing on Salt Spring Island on Wednesday, May 12. (Courtesty Salt Spring RCMP)
Body of UBC professor found on Salt Spring Island, no foul play suspected

Sinikka Elliott taught sociology at the university

The first Black judge named to the BC Supreme Court, Selwyn Romilly, was handcuffed at 9:15 a.m. May 14 while walking along the seawall. (YouTube/Screen grab)
Police apologize after wrongly arresting B.C.’s first Black Supreme Court Justice

At 81 years old, the retired judge was handcuffed in public while out for a walk Friday morning

Most Read