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Mobile Syrup

Parties conclude evidentiary portion of Competition Tribunal’s Rogers-Shaw merger hearing

The Competition Tribunal is close to concluding its hearing into Rogers’ takeover of Shaw.

The evidence portion of the hearing, which took place over the last four weeks, concluded Thursday. It featured testimony from witnesses, including executives from Rogers, economists, and professors.

The first week was largely spent in camera, in private sessions away from the public view. The second week started with a push from Chief Justice Paul Crampton, who is overseeing the hearing as part of a three-member panel, to have more of the hearing available to the public.

That led to scores of documents once labelled confidential being publicly shared through cross-examinations. It revealed Telus’ plans to “kill, shape, and slow” the merger and Distributel’s attempts to buy Freedom Mobile.

However, the hearing didn’t stay in public for long. Several instances of confidential information in the last two weeks led to long periods in camera.

The Competition Bureau wants the tribunal to block the $26 billion merger, which would also see the divestiture of Freedom Mobile. Québecor subsidiary Vidéotron is buying the company for $2.85 billion.

The bureau’s lawyers have argued that separating Freedom from Shaw will create a weakened competitor. Rogers will still be attaining 450,000 Shaw Mobile customers.

Lawyers from Rogers, Shaw, and Québecor have argued that Freedom will be a strong fourth competitor under Vidéotron.

Parties will give oral arguments on December 13th and 14th. Crampton says he hopes to present a decision before Christmas.

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Mobile Syrup

Distributel proposed to buy Freedom Mobile, but its offers were ignored

Distributel was looking to acquire Shaw’s wireless assets in April, a publicly shared document at the Competition Tribunal’s hearing into the Rogers-Shaw merger show.

Distributel made two proposals, but Rogers never acknowledged the offers. Distributel made the offers before Bell announced it was acquiring the Ottawa-based telecommunications company.

The affidavit of Christopher Hickey, director of regulatory affairs at Distributel, says Bell’s acquisition wasn’t related to efforts to acquire Freedom Mobile from Shaw.

Another document shared with the public acknowledges the acquisitions of Ebox, which Bell announced it would take over, and VMedia, which Québecor acquired. The document calls the latter acquisition a “strategic” move, citing the Rogers-Shaw merger.

Rogers started meeting with prospective Freedom Mobile buyers earlier this year. As previously reported, the company was talking with multiple parties to secure a deal to satisfy competition concerns brought by Innovation Minister François-Philippe Champagne. The company agreed to sell Freedom to Québecor subsidiary Vidéotron for $2.85 billion. It’s not clear how much Distributel offered.

Distributel’s plans were revealed on day five of the hearing, which is in its second week. The day started with cross-examining representatives from Telus, which showed the company attempted to “kill, shape, and slow” the merger.

The details, marked initially to be confidential, were shared with the public after Chief Justice Paul Crampton said the parties needed to make efforts to be transparent. The first week of the merger saw the parties going behind closed doors on several occasions. Justice Crampton’s move to make things public suggests not everything discussed in-camera in week one needed to be that way.

Despite the transparency efforts, not all witnesses appeared before the public. Namely, Comcast, the American telecom company, had their session behind closed doors. The company argued they were only made aware of the need to be in a public session 20 minutes before they had to speak, and their prepared statement was made with complete confidentially in mind.

Image credit: Shutterstock

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Mobile Syrup

Bell will merge Distributel with EBOX, not its residential services

Bell will consolidate Distributel with EBOX.

Glen LeBlanc, Bell’s chief financial officer, shared the news at BMO’s 23rd annual Media and Telecom conference.

“We will leave [Distributel] as a self-standing entity and operate it as such. We will consolidate it with EBOX,” he said.

Bell announced its plans to acquire Distributel earlier this month in a brief press release. Bell also acquired EBOX earlier in the year.

The Distributel acquisition will help Bell grow its internet subscriber growth, LeBlanc said, noting it will take between three and five months to gain regulatory approval.

LeBlanc also said the changes won’t reduce competition.

“From our perspective, consolidation in our industry continues to be a reality on this wholesale front, and I don’t think that in any way reduces competition when you see the number of players that still exist, including the largest one in TekSavvy,” LeBlanc said.

Via: Cartt.ca

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Mobile Syrup

Bell to acquire independent telecom company Distributel

Canada’s independent telecom market continues to shrink. Ottawa-based Distributel will join Bell’s growing roster of companies.

In a press release, Bell says the merger will support Distributel’s growth in residential and business internet services.

“Distributel is a highly successful company with experienced industry talent and we’re excited for them to join the Bell group of companies,” Blaik Kirby, group president of consumer and small and medium business at Bell, said.

“As part of Bell, Distributel will enhance its innovative services for residential and small and medium business customers, backed by Bell’s resources and technology.”

It’s not clear what the financial value of the merger is. However, Bell says its investment will provide Distributel with resources and technology to help the businesses grow.

“With this announcement, Distributel is better positioned to compete and deliver on our decades-long commitment to bringing choice and affordability to Canadians from coast to coast to coast,” Matt Stein, Distributel’s CEO, said.

The press release notes Distributel will “operate independently” once the acquisition closes. The merger is subject to regulatory approvals.

Image credit: Shutterstock

Source: Bell

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Mobile Syrup

Primus expands internet service availability in Quebec

Distributel-owned Primus Communications is expanding its internet offerings in Quebec.

According to a press release, the Toronto-based telecommunications company’s network now covers “an additional 71 percent” of Quebec.

As for where in Quebec, a Distributel spokesperson confirmed via email that Primus’ high-speed internet service is currently available in “the greater areas of Montreal, Québec City, Gatineau, Sherbrooke, Trois-Rivières, Saguenay and Chicoutimi, as well as in other smaller areas” in the province.

Primus sells internet, home phone, long distance and wireless services across Canada.

Distributel acquired Primus at the start of the year in January 2021.

Prior to the acquisition, Primus was one of Canada’s largest independent telecom service providers.

Source: Distributel