The chief financial officer of BCE says Freedom Mobile will have a hard time competing against other telecom companies if Shaw puts it up for sale.
According to the Globe and Mail, Glen LeBlanc believes there’s a “high probability” Rogers will sell Freedom Mobile to gain approval for its merger with Shaw. He made the comments at Scotiabank’s telecom, media and technology conference.
The statement comes on the heels of Innovation, Science and Industry Minister François-Philippe Champagne’s comments saying Rogers can’t require all of Shaw’s wireless licenses as doing so will decrease competition.
Numerous parties are interested in acquiring Freedom Mobile, including company founder Anthony Lacavera and telecom giant Québecor Inc.
Québecor released several statements since Minister Champagne made his comments, praising the government for wanting to create competition.
But as The Globe reports, LeBlanc believes Québecor purchasing the company could create distractions.
“It’s going to take their attention away from their core market in Quebec,” he said.
Minister Champagne’s comments came just before the House of Commons Standing Committee on Industry and Technology released a report outlining suggestions on the merger.
One of those was to launch consultations examining separating businesses that build infrastructure networks, and those that sell retail services, as doing so could increase competition.
Peter Nowak, vice-president of insight and engagement at TekSavvy, says the matter should’ve been discussed long ago.
“In the context of structural separation, one approach the government could take with the merger is to allow it, but only if Rogers and Shaw agree to split off their network operations into an entirely separate entity,” Nowak wrote in a blog post on the company’s website.
“This could set the table for a new and more competitive telecommunications marketplace in Canada, with other big companies following suit either voluntarily or through government requirements.”
Source: The Globe and Mail
