Tag: Competition Bureau

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Telecom news roundup: Competition Bureau ends fight to block Rogers-Shaw merger [Jan 21-27]

The Competition Bureau will no longer appeal against the Rogers-Shaw merger and Vidéotron’s takeover of Freedom Mobile.

The federal department was seeking to overturn a ruling made by the Competition Tribunal supporting the merger. However, the Federal Court of Appeal was quick to rule against the appeal, ending a months-long push to block the mergers.

More information, and a recap of other telecom news in Canada, are available below.

Business

Globalive is seeking a return to the wireless market by purchasing spectrum from Xplore Mobile. The telecom provider shut down in August. It’s unclear how much Globalive has offered for the spectrum and if Xplore Mobile and ISED will approve.

Vicky Eatrides is the CRTC’s new chair, and she has several priorities to tackle in her new role. This includes providers sharing more information on MVNOs and lowering wholesale internet pricing.

Remember BlackBerry? The device might be dead, but the company’s story lives on thanks to Matt Johnson’s movie named “BlackBerry.” The film follows the work of Research in Motion (RIM), the company behind the smartphone. It will make its world premiere at the Berlin International Film Festival in February.

The Competition Bureau has ended its bid to block Rogers’ takeover of Shaw after the Federal Court of Appeal rejected its bid to overturn the Competition Tribunal’s decision. The anticipated hearing was short, with Justice David Stratas questioning the bureau’s arguments. Rogers, Shaw, and Québecor didn’t present their arguments. The decision left several telecom advocates disappointed.

In order for the merger to proceed, it needs Minister François-Philippe Champagne’s approval. According to a recent interview with the Toronto Star, he’s in no hurry.

The House of Common’s industry and technology committee also discussed Rogers’ takeover of Shaw and Vidéotron’s acquisition of Freedom Mobile. Many of the questions revolved around how Rogers selected Vidéotron to take over Shaw’s wireless spectrum licenses.

Bell Aliant charged a Nova Scotia senior long-distance pricing for local calls and didn’t admit its mistake and make a change until the CBC reported on the issue.

Telus has created a new consumer solutions business focusing on personalized tech solutions.

The telecom giant has also expanded its 5G partnership with the University of Windsor.

Innovation Canada held its first residual spectrum auctions since 2018, selling 600 MHz, 2500 MHz, and 3500 MHz spectrum licenses. Several companies secured licenses, including Bell, Rogers and TBayTel.

SaskTel has started rolling out its 5G network in the Battlefords, providing residents and businesses with speeds up to 1.2Gbps.

Bell held its first Let’s Talk Day after replacing its traditional donation method. The company previously made a five-cent donation per interaction but opted for a capped $10 million donation this year.

Eastlink is close to completing its fibre upgrade in Mindemoya, Ont.

Plan updates

The latter part of this weekly update is typically reserved for wireless deals. However, wireless providers didn’t release any deals this week, raising prices instead.

Fido has increased its monthly plans by $5 a month, but customers can cancel the cost if they sign up for Automatic Payments.

Bell and Virgin Plus will increase roaming rates by $1/day on March 9th. The increase applies to both U.S. and international roaming plans.

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Telecom advocates disappointed in federal court’s dismissal of Competition Bureau’s appeal

The largest telecom merger in Canada is one step closer to gaining approval, and various organizations are voicing their concerns.

The only person to stop this merger now is Innovation Minister François-Philippe Champagne after the Federal Court of Appeal rejected the Competition Bureau’s push to overturn the Competition Tribunal’s decision.

The bureau long sought to block the merger, stating the approval will lead to higher wireless bills for Canadians. It took its case to the Competition Tribunal, which backed the telecoms. The bureau appealed the decision, stating the tribunal committed legal errors.

Specifically, the bureau argued the tribunal focused on Vidéotron’s acquisition of Freedom Mobile and not Rogers’ takeover of Shaw. However, the court sided with the tribunal’s decision in a quick hearing that only lasted a couple of hours. The bureau says it won’t appeal the decision.

The Public Interest Advocacy Centre (PIAC) said it’s “horrified” by the “instant dismissal.”

“The public can only be suspicious that the powers that be want this deal to close — even if it means a decade of high wireless and internet prices for Canadians,” John Lawford, PIAC’s executive director, said.

During the tribunal’s hearing, it was revealed that Rogers would lease its wholesale wireline access rates to Vidéotron at lower rates than what the Canadian Radio-television and Telecommunications Commission (CRTC) has mandated.

Last week, TekSavvy filed an application requesting the CRTC to examine this factor, and the bureau tried to bring this application up at its appeal.

In its reaction, TekSavvy maintained its position. “The Rogers-Shaw merger is based on an unlawful side deal with Vidéotron that will kill competition and raise consumer prices,” the company tweeted, saying the CRTC has to investigate before Minister Champagne makes a ruling. “[The] court decision doesn’t change that.”

The company previously called on Minister Champagne not to approve the transfer of spectrum licenses from Shaw to Vidéotron, citing the impact it will have on independent service providers (ISPs).

OpenMedia’s campaigns director Matt Hatfield echoed this statement in reaction to the federal court’s decision. “We’re seeing a collapse of independent ISPs that create positive price pressure on telecom giants, and we’re now on the verge of adding Shaw to that list. In 2022 alone, we lost over a half dozen independent providers to big telecom buyouts.”

This is leading to increased prices and less competition, Hatfield said. The solution lies in “services-based competition,” including fair wholesale internet pricing and opening up MVNOs.

Minister Champagne said he would deliver his decision in “due course.”
The approval clears the way for the Rogers and Shaw merger to a near conclusion, a process that has taken nearly two years. The company hopes to close it by January 31st.
“We welcome this clear, unequivocal, and unanimous decision by the Federal Court of Appeal. We continue to work with Innovation, Science and Economic Development Canada to secure the final approval needed to close the pro-competitive transactions and create a stronger fourth wireless carrier in Canada and a more formidable wireline competitor,” a joint statement from Rogers, Shaw and Québecor states.
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Federal Court dismisses Competition Bureau’s appeal against Rogers-Shaw merger

The Federal Court of Appeal has rejected the Competition Bureau’s appeal against Rogers’ takeover of Shaw and Vidéotron’s acquisition of Freedom Mobile.

Justice David Stratas delivered the ruling after a lengthy break where the justices discussed the outcome. The bureau presented its arguments earlier in the morning. Legal representatives from Rogers, Shaw and Vidéotron didn’t present their arguments.

The bureau was arguing the Competition Tribunal errored in its decision by backing the telecom companies. They argued the tribunal should have examined Rogers’ merger with Shaw and not Vidéotron’s takeover of Freedom Mobile. However, the tribunal said it would have reached its decision either way.

Justice Stratas agreed with the tribunal. In his lengthy reasoning, he said he could not be persuaded that the result would be different and it would be pointless to have the Competition Tribunal examine this again.

More to come…

Image credit: Shutterstock 

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TekSavvy says Rogers, Vidéotron wholesale deal violates Telecommunications Act

Source: https://www.newswire.ca/news-releases/teksavvy-launches-super-fast-fibre-internet-service-in-tupperville-851678510.html

TekSavvy wants the Canadian Radio-television and Telecommunications Commission (CRTC) to investigate wholesale arrangements between Rogers and Vidéotron.

The deal is part of Rogers’ plans to merge with Shaw and will see Vidéotron acquire Freedom Mobile. However, TekSavvy argues the arrangements violate the Telecommunications Act.

During the Competition Tribunal’s hearing examining the merger, the companies shared Rogers would lease its broadband network with Vidéotron at a discounted price. TekSavvy says these prices aren’t available to them or other independent service providers (ISP) that lease services from incumbents.

The CRTC sets wholesale rates, and TekSavvy argues the arrangement violates Section 27(2) of The Act, resulting in anti-competitive actions.

“The largest consolidation in the history of the Canadian telecom sector is predicated on unlawful wholesale agreements,” Andy-Kaplan Myrth, TekSavvy’s vice president of regulatory and carrier affairs, said.

“These arrangements were not arrived at through negotiations based on natural market forces, but are instead an effort by Rogers to remove regulatory hurdles to its acquisition of another Incumbent, Shaw.”

The CRTC approved broadcast aspects of the merger in March 2022 with several conditions.

The Competition Bureau is fighting to block the merger and will face Rogers, Shaw, and Vidéotron in the Federal Court of Appeal next week. The Competition Tribunal previously discussed the matter and backed the telecoms.

The bureau argues the tribunal didn’t consider the various issues surrounding such arrangements. On the other hand, the three telecom companies have asked the court to dismiss the bureau’s application.

Innovation Minister François-Philippe Champagne also needs to provide approval. TekSavvy recently urged the Minister to block the transaction, citing fears such ventures could impact the presence of ISPs.

Image credit: TekSavvy

Source: TekSavvy

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Rogers says Competition Bureau’s appeal based on ‘collateral attacks,’ calls for dismissal

Rogers, Shaw, and Vidéotron are asking the court to dismiss an appeal from the Competition Bureau.

The four parties will face the Federal Court of Appeal on January 24th to make their respective cases on Rogers’ takeover of Shaw and Vidéotron’s acquisition of Freedom Mobile.

The parties previously faced the Competition Tribunal in a weeks-long hearing to discuss similar feats. The tribunal supported the telecoms and rejected the bureau’s arguments. The bureau appealed, stating the tribunal errored in its decision.

The response from lawyers representing the three telecoms says the tribunal’s findings were “rigorous” and based on evidence.

“The legal errors [the Commissioner of Competition] relies on are collateral attacks on the tribunal’s assessment of the evidence and its findings of fact, dressed up as pure questions of law.”

The bureau filed its initial appeal on December 31st and updated it on January 10th. The bureau argues the tribunal should’ve mainly focused on Rogers’ merger with Shaw and not solely on Vidéotron acquiring Freedom Mobile. In its findings, the tribunal said it would have reached its conclusion either way. In its updated appeal, the bureau said the tribunal failed to explain how it would get the same conclusion, resulting in a legal error.

The respondents say the bureau’s appeal ignores several vital aspects, including that the commissioner was aware “of every aspect” of the Rogers and Shaw merger and “closely involved with Vidéotron.”

“The suggestion that the sale of Freedom was a “trial balloon”–some kind of litigation stratagem to catch [the commissioner] by surprise–is unfaithful to the record and unhelpful to this court,” the respondents say. “Having now withdrawn his claim that the Tribunal ‘rushed to judgment,’ he makes no fairness argument before this court.”

The response further revealed Rogers and Shaw presented the bureau with two potential buyers for Freedom Mobile before continuing with Vidéotron.

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Industry and Technology committee will explore Rogers-Shaw merger on Jan. 25th

The House of Common’s industry and technology committee will re-examine Rogers’ merger with Shaw on January 25th.

A parliamentary staffer confirmed the date to Cartt.ca.

The Globe and Mail reported last week the committee would examine the takeover for a second time. The committee initially discussed the matter in March 2022, recommending against the merger.

However, the second hearing will focus on Vidéotron and its plans to acquire Freedom Mobile. Rogers and Shaw announced they would sell Freedom after the initial recommendations were made.

The hearing will occur one day after the Competition Bureau presents its arguments to the Federal Court of Appeal. The bureau is appealing the Competition Tribunal’s decision to support the Rogers-Shaw merger, stating the tribunal failed to analyze the case accurately. 

Source: Cartt.ca 

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Telecom news roundup: Bell drops 5 cents per post donation for Let’s Talk Day [Jan 7-13]

2023 is just two weeks old, but the telecom news isn’t coming in slowly. Some companies have already released Q1 financial results for the year, while others have changed the way they’ll make financial donations.

As a recap, here’s almost everything that happened in Canada’s telecom sector this week.

Business

Bell is changing its donation method for Bell Let’s Talk Day. The company typically gives five cents for every message shared on the day. But it’s now retiring the practice for a $10 million donation instead. It’s unclear why Bell went this route.

The telecom giant also rolled out 3Gbps speed and 5G+ in Atlantic Canada. The latter service is now available in Moncton, Riverview, Mount Pearl, and Halifax.

ISP TekSavvy says Industry Minister François-Philippe Champagne must block Rogers’ $26-billion takeover of Shaw. Peter Nowak, the company’s spokesman, said ISPs are being “squeezed out,” and the Minister must take action.

The Competition Bureau is set to face the Federal Court of Appeal on January 24th to argue against the Competition Tribunal’s approval of Rogers’ merger with Shaw. In its original appeal, the bureau argued the tribunal should’ve solely focused on the Rogers-Shaw merger instead of Vidéotron’s commitment to acquire Freedom Mobile. The tribunal said it would’ve reached its conclusion to support the larger merger either way. In its updated appeal, the bureau said the tribunal failed to explain why that would’ve been the case.

SaskTel has launched Cloud PVR service on maxTV Stream, allowing users to record up to 300 hours of content.

The University of Waterloo is leading a group of companies and academics to create technologies that will protect Canada’s national security through 5G. École de technologie supérieure in Montréal, University of Regina, BlackBerry, NoviFlow, Rockport Networks and Rogers are part of the consortium.

Shaw reported adding 12,000 new wireless prepaid customers in the first quarter of 2023. However, the company’s overall revenue decreased.

Cogeco also released its Q1 financial results for the year, bringing in $762 million in revenue. Despite the revenue increase, the company projects growth will slow this year.

The House of Common’s industry and technology committee will hold a second hearing on Rogers’ merger with Shaw, according to The Globe and Mail. 

Deals

Public Mobile is offering new customers 5GB of bonus data per month for eight months. Read the details here.

Koodo and Virgin have increased the cost of their unlimited talk and text plans to $33/ month. This is a significant price increase, considering the plans used to close $27 back in August 2022.

Fido has discounted some of its plans by $10/month for Lunar New Year. More specifics are available here.

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Competition Bureau updates its arguments against Rogers-Shaw approval

The Competition Bureau has updated its appeal on the Competition Tribunal’s decision to approve Rogers’ takeover of Shaw.

If the $26-billion merger is approved, Vidéotron will acquire Freedom Mobile under a separate acquisition. The side deal played a major role during the weeks-long tribunal hearing that ultimately favoured the Rogers-Shaw merger.

The case is now heading to the Federal Court of Appeal. The bureau filed its initial appeal on December 31st, arguing the hearing should’ve solely focused on the larger merger at hand, despite the tribunal stating it would’ve reached its conclusion either way.

The bureau updated its appeal on Friday, according to The Globe and Mail, to argue the tribunal failed to explain why it would’ve reached the same conclusion, resulting in a legal error. The updated appeal further states the tribunal failed to properly apply the legal test analyzing mergers.

The parties will present their cases on January 24th.

Image credit: Shutterstock 

Via: The Globe and Mail 

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Rogers and Shaw will face the Federal Court of Appeal on January 24

The Competition Bureau will present its arguments against Rogers’ takeover of Shaw for a second time in recent weeks later this month.

The January 24th date, selected by the Federal Court of Appeal, answers the bureau’s request to appeal the Competition Tribunal’s decision approving Rogers’ takeover of Shaw and Vidéotron’s acquisition of Freedom Mobile. The tribunal found either acquisition likely wouldn’t result in higher wireless costs for Canadians.

January 31st is the closing day for the Rogers and Shaw merger, and the January 24th appeal cuts the time timeline close. The merger isn’t allowed to conclude until the court shares its decision.

Industry Minister François-Philippe Champagne also needs to approve the merger, but he has stated he will wait for the legal proceedings before rendering his decision.

Image credit: Shutterstock

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Court of Appeal temporarily suspends tribunal’s ruling backing Rogers-Shaw merger

The Federal Court of Appeal has issued an “emergency interim” suspension on the Competition Tribunal’s decision to back Rogers and Shaw on its merger plans.

The tribunal was tasked with hearing the Competition Bureau’s application to block the $26 billion merger in December. Before the month ended, the tribunal dismissed the bureau’s application, allowing the merger to proceed.

The bureau filed a notice of appeal on December 3oth, soon after the tribunal released a summary of its decision, and the Federal Court of appeal granted the temporary stay on January 1st.

“This will remain in effect until our application for a stay and an injunction can be heard,” the Competition Bureau tweeted. The stay does not mean the merger is blocked but does prevent it from closing until the case is heard.

In its final decision, posted on December 31st, the tribunal said, “the proposed transactions and ancillary agreements comprising the arrangement are not likely to prevent or lessen competition substantially.”

The tribunal further dismissed arguments that selling Freedom Mobile to Vidéotron would make it a “less effective competitor” or that the merger would increase anti-competitive behaviour.

In a recent statement, Shaw asked the bureau to reconsider its application to fighting the tribunal’s decision. “It is now clear that the Tribunal rejected the evidence of the most important witnesses of the Commissioner, as well as all of his key complaints and theories.”

The merger received approval from the Canadian Radio-television and Telecommunications Commission in March 2022. Industry Minister François-Philippe Champagne also needs to approve the merger. But he won’t share his decision until the legal challenge is heard.

Source: Competition Bureau, Shaw,  Competition Tribunal