Feds officially block Rogers from bid to access Shaw's wireless frequencies
Two of Canada’s telecommunications giants will be revising their plans after a federal minister officially denied their request.
On Tuesday, October 25, Minister of Innovation, Science and Industry François-Philippe Champagne shared a statement about the proposed $26 billion Rogers-Shaw transaction.
When it comes to wireless services, Canadians deserve and need better options.⁰
My statement on the proposed Rogers-Shaw transaction: https://t.co/hqsfts3EGh pic.twitter.com/IwMB3hYLzE— François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne) October 25, 2022
“Later this week, the parties to the Rogers-Shaw transaction will begin mediation with the Competition Commissioner,” he said.
“Earlier this year, I stated that I would—under no circumstances—permit the wholesale transfer of wireless spectrum licences from Shaw to Rogers.”
“Today, I officially denied that request, which had been pending before me,” he said.
“My decision formally closes that chapter of the original proposed transaction.”
In March 2021, Rogers announced its intent to acquire Shaw. A year later, the transfer of broadcast licences owned by Shaw to Rogers Communications was formally approved by the Canadian Radio-television and Telecommunications Commission (CRTC).
At the time, Canada’s minister of innovation shared his thoughts on the development.
Today’s conditional approval by the CRTC on the broadcast portion of the Rogers-Shaw proposal doesn’t change my position. I will reject any deal that doesn’t ensure affordability for Canadians and a competitive wireless market.
My earlier statement: https://t.co/XUDxkFavX6
— François-Philippe Champagne (FPC) ?? (@FP_Champagne) March 24, 2022
Now, it appears that Champagne has stuck to his word and the sale will not be going ahead as originally planned.
But while one door closes, another opens.
According to Champagne, Shaw has proposed to sell Freedom Mobile to Vidéotron. This sale would require the minister’s approval to transfer the spectrum licenses, and he has some expectations for how that sale will go down.
“First, I am giving notice that any new wireless licences acquired by Vidéotron would need to remain in its possession for at least 10 years. A new service provider needs to be in it for the long run,” said Champagne
“Second, I would expect to see prices for wireless services in Ontario and Western Canada comparable to what Vidéotron is currently offering in Quebec, which are today on average 20% lower than in the rest of Canada.”
According to a recent report on 4G and 5G prices worldwide, prices in the Canadian wireless market – a de-facto network duopoly — are among the highest (or even the highest) in the world.
“Let’s face it: when it comes to wireless services, Canadians deserve and need better options,” said Champagne.
“Canadians deserve world-class networks and access to wireless services at affordable and competitive prices. I am resolved to achieve these objectives—full stop.”
Daily Hive has reached out to Shaw and Rogers for comment.
With files from Daily Hive Staff.