FOR IMMEDIATE RELEASE
OTTAWA, March 31, 2023 – The Public Interest Advocacy Centre (PIAC) reacted skeptically to today’s announcement of the Minister of Innovation, Science and Industry permitting the transfer of spectrum of Freedom Mobile to Vidéotron Limitée as the final step in Rogers Communications Inc.’s acquisition of Shaw Communications Inc., subject to a ‘contract with Canadians’ that contains certain conditions.
“The promise is a ‘new national fourth player’ wireless company and lower prices for cellphone service – this is smoke and mirrors,” said John Lawford, Executive Director and General Counsel at PIAC. “We do not believe the conditions obtained by the Minister can counteract the anti-competitive effects of this merger on Canadians, and will lead to another decade of high wireless prices for Canadians,” he added.
The conditions on Vidéotron and Rogers are outlined in a set of agreements with the federal government. Many of the conditions, such as 5G investment and commitments to indigenous and rural connectivity were already announced as part of the original Rogers-Shaw merger and are not new. Others, such as the creation of “3000 new jobs” and a Calgary regional headquarters for Rogers have no clear timeline and it is unclear if they will lead to job reductions elsewhere in the country or forced relocations of present Rogers employees.
The deal also has market distorting elements, such as a commitment by Vidéotron to offer “plans that are comparable to those currently available in Quebec, and offer options at least 20% cheaper than those made available by the major players” and “increase data allotments of existing Freedom Mobile customers by 10% as a near-term bonus while it invests to bring down prices overall”. PIAC contends that such an ‘unprecedented’ effort (in the Minister’s words) betrays a desperate attempt to control a situation that is beyond the capabilities of the Canadian government.
“Such commitments amount to deckchair arrangement on a sinking ship of traditional players in identical market positions,” added Lawford. “The saga of the Rogers-Shaw deal has demonstrated that the telecommunications law, competition law and Government of Canada have lost control of a key sector in Canada.”
For more information please contact:
John Lawford
Executive Director & General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ×125
jlawford@piac.ca
social: @CanadaPIAC