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Mobile Syrup

Former ISED minister Navdeep Bains joins Rogers’ executive team

Toronto-based telecom company Rogers detailed changes to its executive leadership team, which includes adding former Innovation, Science and Economic Development (ISED) minister Navdeep Bains.

Bains was appointed Rogers’ Chief Corporate Affairs Officer. According to a release from the company, Bains “will build on his years of public and private sector leadership on critical issues facing our country, including improving connectivity in rural and remote Indigenous communities across Canada.”

Part of his mandate will include leading the Public Policy and Environmental, Social and Governance (ESG) efforts for Rogers. Bains will also focus on Canada’s digital economy, access for low-income families and climate change action.

Bains previously was vice chair of global investment banking at CIBC but his time as ISED minister is more notable. Bains stepped down as ISED minister in January 2021. At the time, Bains said he needed to “put his family first.” Current ISED minister François-Philippe Champagne was sworn in on January 12th.

Along with Bains, Rogers added two other people to the executive team. Shaw’s chief operations officer Zoran Stakic was appointed as Rogers’ chief transformation officer. Rogers appointed Terrie Tweddle as chief brand and communications officer — Tweddle worked for Rogers from 2008 until 2020 and rejoined the company in 2022.

Other notable changes include that Ted Woodhead, Rogers’ chief regulatory and government affairs officer, is leaving the company. Marisa Wyse, Rogers’ chief legal officer, will assume regulatory affairs.

Source: Rogers

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Mobile Syrup

Competition Tribunal decides Rogers-Shaw merger can move ahead

Canada’s Competition Tribunal cleared the way for the Rogers-Shaw merger to move ahead after dismissing the Competition Bureau’s application to block the proposed $26 billion acquisition.

The deal still requires approval from Innovation, Science and Economic Development Canada (ISED) and a spokesperson for Minister François-Philippe Champagne told The Globe and Mail that ISED was reviewing the tribunal’s decision and “will have more to say in due course.”

The Competition Tribunal released a summary of its decision on December 29th and plans to release a more detailed decision in the next two days. The summary notes that the tribunal found the merger would not result in materially higher prices.

Moreover, the decision said the sale of Shaw’s Freedom Mobile to Quebecor-owned Vidéotron — a key pillar of the deal — would likely not prevent or lessen competition substantially. Earlier this year, Quebecor agreed to buy Freedom for $2.85 billion.

The tribunal also dismissed concerns that Bell and Telus would not be able to compete with the combined Rogers and Shaw.

“I am very disappointed that the tribunal is dismissing our application to block the merger between Rogers and Shaw. We are carefully considering our next steps,” said Matthew Boswell, commissioner of the federal Competition Bureau, in a statement on the 29th. The Competition Bureau has 30 days to appeal the tribunal’s decision.

Additionally, The Globe and Mail reported that Rogers and Shaw agreed to extend the deadline of the proposed merger into 2023. The extension requires Rogers to pay its bondholders $250 million.

Source: The Globe and Mail, CBC News

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Mobile Syrup

ISED denies request to transfer Telus Xplore Mobile’s spectrum

Innovation, Science and Economic Development (ISED) Canada has refused a request that would have seen Telus acquire spectrum licenses held by Xplore Mobile.

The licenses were for radio, wireless, and mobile broadband services and originated in Manitoba.

Xplore (recently rebranded from Xplornet) shut done its mobile division in August. Xplore Mobile launched in 2018 after the company acquired spectrum from Bell MTS.

The ISED cites future competition concerns in its reasoning for denial.

“The proposed transfer raised substantial concerns that the resulting concentration of spectrum would impede the ability of future mobile competitors to provide wireless services and effectively compete in Manitoba.”

Image credit: Shutterstock

Source: ISED Canada

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Mobile Syrup

Québecor’s CEO looks favourably at Competition Bureau’s blocking of Rogers Shaw merger

Montreal, QC, Canada – September 4, 2021: Quebecor headquarters in Montreal, QC, Canada. Quebecor Inc. is a Canadian diversified media and telecommunications company.

The Competition Bureau’s applications to block Rogers’ overtaking of Shaw helped Québecor Inc. favourably look into expanding its business in Canada, Pierre Karl Péladeau, Québecor’s CEO, said.

Péladeau made the comments in a press release outlining the company’s Q1 2022 results, referencing applications the federal agency filed Monday. The Bureau said Rogers’ overtaking would reduce competition and affordability.

Péladeau said comments made by the Department of Innovation, Science and Economic Development (ISED) also played a role. In March, François-Philippe Champagne, the Minister of Innovation, Science and Industry, said he wouldn’t approve a merger that would transfer Shaw’s wireless assets (in the form of Freedom Mobile) to Rogers because it would reduce competition.

In response, Rogers has attempted to ease the situation by putting Freedom Mobile up for sale, but the recent actions of the Bureau don’t seem to appease this problem.

The Globe and Mail reported Québecor was recently asked to join the conversation on acquiring Freedom Mobile, despite reportedly being excluded from initial talks.

The company’s other option of expanding, which was around before Rogers started discussions to sell Freedom Mobile, is using the 294 blocks of spectrum it purchased in the 3500 MHz band to offer telecom services in southern and eastern Ontario Manitoba, Alberta and British Columbia.

“We believe that these alternatives position us very favourably, as governmental and administrative authorities, including the Canadian Radio-television and Telecommunications Commission, pursue the public policy of establishing the conditions for true competition in wireless services in Canada,” Péladeau said.

He further referenced Québecor’s 22 percent market share in Quebec as evidence of the company’s “multidimensional expertise.”

“We would apply that expertise with equal energy in other parts of Canada. The opportunities are many and the alternatives promising,” Péladeau said.

The numbers

Québecor’s overall revenue was $1.09 billion, a $3.1 million decrease year-over-year.

8.7 percent revenue increases from Vidéotron offset the total figure. The increased revenue from mobile services and equipment totalled $20 million year-over-year.

Revenue from Vidéotron’s internet service also increased by 0.7 percent. The company added more than 1230,000 new connections over the past year.

Image credit: Shutterstock

Source: Québecor Inc.

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Mobile Syrup

Competition Bureau files to block Rogers-Shaw merger, cites affordability and competition

The Competition Bureau has filed applications to prevent the merger of Rogers and Shaw.

In a press release, the Bureau says removing Shaw as a wireless subscriber (through Freedom Mobile) threatens to undo the progress of introducing competition in a concentrated wireless market, given the Big 3 serve 80 percent of subscribers in Canada.

Their investigation found the competition between Rogers and Shaw has been in decline, and this will continue if the merger is approved.

They state the merger will prevent or lessen competition by eliminating an established and independent competitor, preventing competition for wireless service within and outside Shaw’s service area, and averting competition for wireless services for customers in Ontario, Alberta, and B.C.

The Bureau says Shaw is Rogers’ “closest competitor” and has challenged the company, along with Bell and Telus, by offering quality services with better pricing and data allowances.

“The Competition Bureau conducted a rigorous investigation of the proposed Rogers-Shaw merger and concluded that it would substantially prevent or lessen competition in wireless services,” Matthew Boswell, Commissioner of Competition, said.

“We are taking action to block this merger to preserve competition and choice for an essential service that Canadians expect to be affordable and high quality.”

The Bureau also asks the Competition Tribunal to approve an injunction on the $26 billion deal, blocking the merger from closing before their application is heard. The deadline for the merger is slated for July 31st.

The Bureau shared its opposition plans with Rogers Friday. In a joint statement with Shaw, Rogers stated the transaction is in the best interest of Canadians.

The companies said they are addressing concerns about competition in the wireless market by selling off Freedom Mobile. Rogers has provided little detail on the matter and won’t confirm The Globe and Mail reporting that presents Québecor and Xplornet as potential acquirers.

The Competition Bureau is one of three federal bodies that must approve the merger. The Canadian Radio-television and Telecommunications Commission has approved the merger with conditions, but approval is still needed from Innovation, Science and Economic Development Canada.

Source: Competition Bureau Canada 

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Mobile Syrup

Rogers, Telus, and Bell file opposing views on government’s 3800MHz band consultation

The federal government has received 62 separate documents from more than 50 groups sharing opinions on the 3800MHz band spectrum.

Innovation, Science and Economic Development Canada (ISED) opened the topic for comments in December and was looking for input on three pro-competitive measure options.

The first is a 50MHz set-aside, which means only some service providers will be allowed to bid on that part of the spectrum. It won’t be available to national mobile service providers (NMSPs) — those who possess at least 10 percent of the national wireless subscriber market share.

The second measure is a 100MHz cross-band cap applying to both the 3500MHz and 3800MHz bands. The third measure is a combination of the previous two options.

According to documents filed with the ISED, Telus is against the first option, favouring the 100MHz cross-band cap instead. The company says there’s “a disparity in NMSPs holdings that drives the need for a cross-band cap to facilitate post-auction competition and support investment.”

In a stance against Telus, Rogers says the 100Mhz option “should not be adopted under any circumstances, as it could destroy facilities-based competition between the two national networks” as Bell and Telus will pool their winning spectrums together “into their joint radio access network.”

“There is no justification why the Bell-Telus joint network (which combined only has about half again as many customers as Rogers) should effectively be gifted with the opportunity to assemble and benefit from 200MHz of mid-band spectrum while the Rogers and other networks are limited to 100MHz.”

Bell is against all three options. The company says the pro-competitive measures have “proven that they distort the auction process to the significant benefit of set-aside spectrum recipients and the detriment of Canadian taxpayers.”

Anyone wishing to respond to any of the comments has until March 21st to reply.

Source: Cartt

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Mobile Syrup

Innovation Minister takes vocal stance against Shaw transferring wireless licences to Rogers

Minister of Innovation, Science and Industry François-Philippe Champagne says he won’t allow Shaw to transfer its wireless licenses to Rogers if the merger of the two companies is approved.

“The wholesale transfer of Shaw’s wireless licences to Rogers is fundamentally incompatible with our government’s policies for spectrum and mobile service competition, and I will simply not permit it,” he said in a statement.

Champagne says Canadians are concerned about the merger and what it will mean for the telecom sector, concerns he shares as well. As minister, Champagne says he’s committed to competition and cellphone affordability.

The Globe and Mail reported the industry and technology committee tabled a report asking Champagne to reject the merger if Rogers doesn’t agree to sell wireless licenses owned by Shaw, including Freedom Mobile. The committee last met Tuesday in an in-camera meeting. These meetings are closed to the public.

In order for the merger to go through, the Canadian Radio-television and Telecommunications Commission (CRTC), the Competition Bureau, and Innovation, Science and Economic Development Canada (ISED) need to provide approval.

Source: Innovation, Science and Economic Development Canada

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Mobile Syrup

RCMP issues ‘challenge’ to small business to create AI tool for decrypting data

The Royal Canadian Mounted Police (RCMP) issued a press release via Innovation, Science and Economic Development Canada (ISED) announcing that it wants “a solution to access encrypted data for investigation purposes.”

Specifically, the RCMP wants an artificial intelligence (AI) decryption system “that can process the seized data files and generate specific word lists to try and access the encrypted material” because it’s “facing challenges in accessing encrypted data,” which is kind of the point of encrypting it.

Aside from the fact that handing law enforcement a tool to decrypt encrypted data is a terrible idea, the whole press release has a dystopian vibe to it. The release positions the request as a “challenge” for small businesses issued by ISED and led by the RCMP.

ISED gives small businesses until December 16th to “apply to the challenge.” Further, ISED notes that the government invites small businesses to come up with “a new innovative product, service or solution that answers a specific challenge” through the Innovative Solutions Canada program. Moreover, the release says that “winning” small businesses can receive up to $150,000 to refine research and development and, if they’re accepted into phase 2, receive up to $1 million to develop a working prototype.

“The government can then act as a first customer, helping these businesses commercialize their innovations, scale up their business and create good middle-class jobs across Canada,” the release reads.

So, the feds basically want a business to create an AI tool to decrypt encrypted data as part of a “challenge,” will provide funding for the research and development and wants to be the first customer for the tool. Neat.

Of course, there are plenty of other concerns about law enforcement agencies having such a tool. For one, there’s always the possibility of misuse or abuse of the tool, and there will almost certainly be privacy violations. Not that the RCMP really cares — when the Privacy Commissioner said the RCMP violated Canadians’ privacy using the Clearview AI facial recognition tool, the RCMP basically responded with “Actually, we didn’t!”

Perhaps of greater concern is the possibility that malicious actors could gain access to or steal the tool, which would be really bad for everyone.

And when you consider that are several alternate ways for law enforcement to work around encryption, it seems unnecessary to pursue such a dangerous, problematic tool.

Source: ISED