Tag: Rogers-Shaw

Categories
Mobile Syrup

Minister Champagne isn’t hurrying to approve Rogers-Shaw merger: Toronto Star

Rogers and Shaw are coming close to their proposed January 31st deadline, but Industry Minister François-Philippe Champagne isn’t rushing to grant his seal of approval.

Champagne has to approve the transfer of Shaw’s wireless licenses to Vidéotron as part of a side deal to create a fourth wireless competitor.

The Rogers and Shaw deal has overcome other sources of required approval.

The Canadian Radio-television and Telecommunications Commission (CRTC) approved the broadcast aspect of the merger in March 2022. The Competition Bureau ended its fight to stop the mergers earlier this week after the Federal Court of Appeal rejected its request to overturn the Competition Tribunal’s ruling backing the telecoms.

Champagne told the Toronto Star he has looked at the Federal Court of Appeal’s decision “but wants to more fully understand” it.

The Minister’s conditions of approval include Vidéotron lowering wireless bills in Ontario and Western Canada and retaining the spectrum licenses it acquires for ten years.

“Discussions about making sure that these conditions are enforceable [have taken place]. And the thing that I can say — I’m a lawyer, so we will make sure that these undertakings are binding,” Champagne told the publication. He confirmed various enforcement options, to occur if requirements aren’t met, are being examined.

“As the regulator, I am not bound by any deadline,” Champagne said.

Image credit: @fp_champagne

Source: Toronto Star

Categories
Mobile Syrup

MPs question how Rogers picked Vidéotron as fourth competitor

The Rogers-Shaw and Vidéotron-Freedom Mobile mergers are close to gaining full approval, but questions still exist.

Concerns were displayed at the House of Common’s industry and technology committee meetings today, with questions directed toward telecom officials. This is the second meeting on the matter. The first took place in March 2022 and was before Rogers and Shaw announced it would sell Freedom Mobile to Vidéotron.

The transaction laid the grounds for several MPs who questioned how and why Rogers was able to place Vidéotron in its coveted role. The Québecor subsidiary is paying $2.85 billion for the wireless spectrum, $1 billion less than Globalive’s $3.75 billion offer.

Tony Staffieri, Rogers’ president and CEO, told MPs they picked the best option that “met the criteria.”

Globalive’s chairman, Anthony Lacavera, was also present at the meeting. The company previously signed a conditional network and spectrum-sharing agreement with Telus that was contingent on Globalive acquiring Freedom.

Despite that not being the case, the telecom giant still appears to lend its support to Globalive. Lacvera recently announced Globalive’s plans to acquire Xplore Mobile in Manitoba and is looking to expand its agreement with Telus.

Lacavera has been a strong voice of opposition against the two mergers. When asked how the competition would differ if Globalive acquired Freedom, Lacavera said Telus wouldn’t be dictating the company’s actions.

“There’s no scenario where Globalive is in bed with Telus, working for Telus. That’s just not with our history,” Lacavera told the committee.

When it came time for Shaw president Paul McAleese to speak, he had some pointed words about Lacavera. Shaw acquired Wind in 2016 from Globalive and rebranded it to Freedom, and that process required Shaw to straighten out several problems.

“I operated what was Wind Mobile after Mr. Lacavera exited the building, and I have a deep understanding of the effort required to fix the many challenges we inherited,” McAleese said. One such problem was Apple “refusing to authorize iPhone on the sale of Wind’s network,” which Freedom secured in 2017.

Some of the attendees asked Innovation Minister Francois Philippe-Champagne not to approve Shaw’s spectrum license transfer to Vidéotron. TekSavvy recently filed an application with the Canadian Radio-television and Telecommunications Commission (CRTC) to examine the matter.

When asked if Minister Champagne will wait for the CRTC to make a decision on TekSavvy’s application, Éric Dagenais, a senior employee from Innovation, Science and Economic Development (ISED) Canada, said the Minister will make a decision in “due course.” Dagenais said he couldn’t provide any further details.

Categories
Mobile Syrup

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.
Categories
Mobile Syrup

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 

Categories
Mobile Syrup

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.

Categories
Mobile Syrup

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