Tag: Rogers-Shaw hearing

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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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Here’s what’s next in the Rogers and Shaw saga

Rogers’ first round of approval for its $26 billion merger with Shaw received little pushback.

The Canadian Radio-television and Telecommunications Commission (CRTC) held a hearing to discuss the broadcast aspects of the merger in November 2021, providing its approval, with conditions, in March 2022.

The companies also need approval from Innovation and Science and Economic Development Canada (ISED) and the Competition Bureau. That hasn’t been as straightforward.

The Competition Bureau has been a strong voice of opposition, stating the merger will lead to higher wireless bills, among other issues, for Canadians. The sale of Shaw-owned Freedom Mobile to Québecor subsidiary Vidéotron for $2.85 billion did little to appease concerns.

Representatives from the bureau wrapped up a four-week tribunal hearing with lawyers from Rogers, Shaw, and Québecor earlier this month. The bureau argued the tribunal should block the deal in its entirety.

Chief Justice Crampton led a three-member panel that originally hoped to share a decision by Christmas. The tribunal will provide a 24-48 hour notice before issuing the decision.

Rogers and Shaw are on a tight deadline to close the deal by the end of the year. However, they have the option to extend it to January 31st. Anything past that date will see Rogers paying millions to bondholders.

But even if Crampton delivers a win for Rogers and Shaw, the companies will have weeks to get approval from ISED to make their deadline. Industry Minister Francois-Philippe Champagne laid out several conditions that Vidéotron would need to fulfill before its takeover of Freedom Mobile is approved. Québecor’s CEO, Pierre Karl Péladeau, quickly indicated the company would accept the conditions.

Vidéotron can only acquire Freedom if Rogers’ takeover of Shaw receives full approval. It’s unclear if Champagne’s conditions for Vidéotron indicate how he’ll rule on the more significant merger. But if they are, the merger can be expected to close sooner rather than later.

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Outages and acquisitions: the most important telecom stories of 2022

2022 was a busy year in the telecom industry. We witnessed new developments on Rogers’ $26 billion takeover of Shaw, saw Starlink’s expansion in the north, and observed how telecom companies respond to disasters nationwide.

In no particular order, here are MobileSyrup’s picks of the most important stories to come from the telecom industry this year.

Rogers outage

Rogers customers woke up on July 8th to no cellphone service, internet, or working home phone lines. Rogers was witnessing a complete outage, leaving many struggling to get daily tasks done. The outage, caused by a maintenance update, impacted 13 million wireline and wireless customers.

The company issued $150 million in credits representing five days of service and said it would make changes to prevent something similar, including separating its wireless and wireline networks. 

Rogers had to answer to millions of angry Canadians. Its first set of heavily redacted responses to the Canadian Radio-television and Telecommunications Commission’s (CRTC) questions came in July, hot on the heels of the outage. The Commission’s subsequent request for more information shed more light, as Rogers offered information once redacted in August. But it didn’t paint a complete picture. The Public Interest Advocacy Centre (PIAC) is one of the parties that want the CRTC to release more details.

While some action has been taken, can another outage be prevented?

Freedom Mobile acquisition

Freedom Mobile

When Rogers’ originally announced its plans to acquire Shaw, there was no word on what it would mean for Freedom Mobile. Innovation Minister François-Philippe Champagne had other plans. In March, he announced Rogers couldn’t acquire Freedom, as doing so would decrease competition. The company received offers to buy Freedom from Xplornet, Distributel and Globalive. However, Québecor subsidiary Vidéotron ended up the winner. 

Competition Bureau’s challenge to Rogers’ takeover of Shaw

The Competition Bureau is one of three parties that needs to approve the Rogers and Shaw merger. But so far, the federal department has strongly opposed the takeover. Citing affordability and competition, the bureau filed to block the merger in May. The parties attempted negotiations twice before moving to a tribunal hearing where the bureau maintained its defiant position to block the merger.

Ian Scott’s time at the CRTC

Vicky Eatrides is the new chair of the CRTC, taking up a role previously held by Ian Scott. Scott filled the role for five years, but his time wasn’t without controversy. This past year, he has faced a request to recuse himself from files related to internet competition, addressed a meeting he had with Bell’s CEO, and faced numerous calls to resign. But Scott successfully completed his term, and if given the opportunity, he would be willing to take up the position again. 

Hurricane Fiona

Hurricane Fiona hit Atlantic Canada with destruction when it made landfall in September, impacting telecom services. In response, some carriers announced they’d waive fees and offer extra data to impacted residents. But according to Nova Scotia’s Premier, not all telecom companies were helpful. Tim Houston sent Innovation Minister François-Philippe Champagne a letter complaining about “poor participation and support” from telecom companies, including Bell and Telus. The companies defended their actions and said they provided full support.

Image credit: Shutterstock 

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Oral arguments from Rogers, Shaw and Vidéotron conclude tribunal hearing

Lawyers representing the Competition Bureau, Rogers, Shaw, and Vidéotron, made their final oral arguments on Rogers’ $26 billion takeover of Shaw this week.

Coming a week and a half after the parties concluded their respective evidentiary portions in the Competition Tribunal’s hearing, the merger’s faith is now in the hands of the tribunal’s three-member panel, led by Justice Paul Crampton.

The Competition Bureau wants the merger blocked, citing higher wireless bills and poorer service if the takeover is approved. Lawyers representing the bureau said Shaw’s divestiture of Freedom Mobile to Vidéotron wouldn’t create a strong fourth competitor, particularly in Western Canada. Freedom Mobile serves Ontario, Alberta, and B.C.

On Wednesday, John Rook, a legal representative for Vidéotron, said the company negotiated terms that will lead to Freedom Mobile succeeding under Vidéotron. He also revealed the company made two offers to acquire Freedom Mobile. The first was in April 2021, and the second was in April 2022. However, the final $2.85 billion price tag to purchase Freedom is lower than what Vidéotron originally offered, Rook said.

Kent Thomson, a lawyer for Shaw, argued the merger would create an aggressive competitor for Telus, Shaw’s main competitor in the west.

“If this transaction is allowed to proceed, Rogers will bring to bear its enormous experience, expertise, scale and resources to compete aggressively and successfully against Telus in the wireline industry throughout Western Canada,” Thomson said Wednesday.

Crampton previously stated he hopes the panel can come to a decision before Christmas. Rogers and Shaw are also hoping to close the deal before the year ends but have the option to extend their deadline to January 31st. The merger still needs approval from Industry Minister François-Philippe Champagne.

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This week in Canadian telecom: provider complaints and 5G growth [Nov. 26-Dec. 2]

This past week featured a plethora of telecom news, including 5G growth, the Rogers-Shaw hearing, and the dip in Starlink’s speeds.

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

Business

Ian Scott has spent the last five years as the chair of the Canadian Radio-television and Telecommunications Commission (CRTC). But if the opportunity presents itself, he’s ready to do it again. “It’s an important organization, and it’s important work. I have the utmost respect for it and its staff,” Scott told MobileSyrup in a sitdown interview. Read the full interview exploring Scott’s time as chair here.

Shaw saw its wireline subscriber count decrease by 40,000 in the third quarter of 2022, its recently released financial report shows. However, it records growth in its wireless business, adding 52,900 customers. Nearly half of the subscribers, 25,000, are postpaid.

SaskTel is continuing to expand its 5G presence across Saskatchewan. The telecom provider now offers 5G in Baildon, Craik, Davidson, Ituna, Turtleford, and the Nekaneet First Nation. Residents with applicable devices and plans now have access to speeds up to 1.2Gbps.

Starlink’s speeds in Canada have declined over the last quarter, a recent analysis from Ookla reveals. SpaceX’s satellite internet provider saw download speeds drop 14 percent. Download speeds sit at 65.80Mbps, and upload speeds are 9.21Mbps. Comparatively, fixed broadband speeds improved by eight percent in Canada.

5G subscribers are continuing to grow around the world, and according to Ericsson’s November Mobility report, global subscriptions will hit 5 billion in 2028. North America will lead the subscription growth, representing an estimated 91 percent of 5G users by 2028.

The digital equity gap in Canada continues to be a problem, a study from Deloitte’s Future of Canada Centre states. Access to digital technology and skill development largely represent the gap, disproportionately impacting Indigenous peoples, racialized communities, and recent immigrants, among others. Income is the single most important factor in utilizing high-speed internet. Access also plays a major role.

The CRTC is now accepting applications for the Broadband Fund. Now in its third round, the fund pays for projects that will improve broadband internet and mobile wireless services across the country. The third round has $750 million to award over five years.

Parties involved in the Competition Tribunal’s hearing into the Rogers-Shaw hearing have concluded the evidentiary portion. The four-week-long hearing featured testimonies from various witnesses, ranging from company executives to professors. The parties will present their oral arguments on December 13th and 14th.

Government

Canadians filed 12,790 complaints about their service providers this year, according to the Commission for Complaints for Telecom-Television Services’ (CCTS) annual report. While complaints decreased by 25 percent compared to last year, problems relating to wireless roaming charges and device financing plans skyrocketed.

Deals

While Black Friday and Cyber Monday have ended, carriers continue to present deals. Fido, Koodo, and Virgin have all released a variety of new deals. More details are available here.

Public Mobile is offering new and existing customers holiday awards. Users can claim 2GB of bonus data and 500 minutes of free international calling on a one-time basis. Customers have until December 31st.

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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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Shaw reports losses in wireline subscribers as tribunal hearing continues

Shaw’s fourth-quarter financial report for the year shows the company’s overall revenue decreased by 1.5 percent to $1.36 billion.

The Calgary-based telecom provider added 52,900 new wireless customers. Over 25,000 of these subscribers were postpaid, a decrease year-over-year. Shaw says the figure results from increased wireless competition and “moderating demand for Shaw Mobile.”

While retail traffic for Freedom Mobile increased over the quarter, it’s still not up to pre-pandemic levels. Fourth quarter revenue for the wireless sector grew by 1.2 percent to $325 million.

The company lost more than 40,000 wireline subscribers, an improvement from the 45,400 subscribers lost in the fourth quarter of 2021. Internet subscribers increased by 4,700, offset by declines in video, satellite, and phone.

The quarterly results come as the Competition Tribunal’s hearing into the company’s merger with Rogers continues. Last week, Trevor English, Shaw’s chief financial officer, told the three-member panel the merger is needed in order for Shaw to compete efficiently.

“We’ve really felt like the best outcome for all constituents was a partnership and a sale to a strategic operator that has the operational scale to effectively compete in the future,” English said.

Part of the merger includes selling Freedom Mobile to Vidéotron to appease competition concerns. However, the Competition Bureau, whose concerns about the merger led to the hearing, is arguing the offset isn’t enough.

Source: Shaw

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This week in Canadian telecom: Black Friday deals and Rogers-Shaw hearing [Nov. 19-25]

While Black Friday might be officially over, according to our calendars, the deals are going strong. Various telecom companies are offering deals on devices, mobile plans and internet packages.

Of course, great deals aren’t the only thing coming from the telecom sector. As a recap, here’s almost everything that happened in Canada’s telecom sector this week.

Business

Innovation Canada announced it would auction several leftover spectrum licenses (2500MHz, 600MHz and 3500MHz) in the new year. Various telecom companies, including Rogers, Bell, and Telus, have applied to participate.

4 million Canadians will upgrade to 5G in the next 12-18 months, a recent report from Ericsson shows. 5G was first introduced in Canada in 2020, and its subscriber base has grown six times since then. However, awareness remains low, and there is room for ample growth.

Ian Scott, the Chair of the Canadian Radio-television and Telecommunications Commission (CRTC), says more competition in Canada’s wireless market is needed. Scott made the statement at the Canadian Telecom Summit (CTS) in what is likely his last public speech as Chair.

Without Rogers’ takeover, Shaw “didn’t see a viable path forward as a standalone company,” Trevor English, Shaw’s chief financial officer, said at the Competition Tribunal’s hearing. The tribunal is examining the Rogers-Shaw merger and has concluded its third week.

The hearing also revealed Rogers executives would receive bonuses once Rogers’ takeover of Shaw is completed. Dean Prevost, Rogers’ president of integration, accidentally revealed his bonus would be $2 million.

Government

The governments of Canada and British Columbia are funding seven high-speed internet projects in the province. CityWest will complete the projects worth $5.2 million to benefit more than 1,100 households on and around Vancouver Island.

Deals

Black Friday and Cyber Monday deals continue throughout the weekend.

Ice Wireless is offering discounts on its endless, prepaid, and home phone plans for 12 months. More information is available here.

TekSavvy is selling deals on various internet packages for some residents for Black Friday.

Koodo is offering a $45/50 GB plan for Black Friday.

Roger is offering a 100GB plan for $75/ month for Black Friday.

Public Mobile is offering a 20GB plan for $35/month. 

A round-up of all the best Black Friday deals can be found here. You can find all of the top deals at Canadian retailers here.

Image credit: Shuttetstock 

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Rogers exec will get 2 million bonus if Shaw merger closes

Executives at Rogers will get bonuses if the company’s $26 billion merger with Shaw is successfully completed.

Dean Prevost, the company’s president of integration, accidentally told hundreds of attendees at the Competition Tribunal’s hearing that he’ll receive a $2 million bonus.

That figure has been confidential, as has most of Prevost’s answers during the hearing, given his role in the merger. However, Prevost let the figure slip when answering a question from Competition Bureau lawyer Paul Klippenstein.

“The amount of that award is $2 million,” Prevost said.

“This is in public? Oh, great,” Prevost said when he realized the mix-up.

Prevost isn’t the only Rogers executive who will receive a bonus for successfully completing the merger. Others are on that list, including Marisa Fabiano, Rogers’ senior vice president of finance.

The executives will only get their bonuses if the merger receives approval from three regulators. The case is currently in front of the Competition Tribunal, hearing the Competition Bureau’s challenge to the merger.

The four (possibly five) week hearing is wrapping up its third week. Large chunks have been held away from the public view, and what has been available to the public has given a glimpse of the actions taken before the hearing.

For example, Trevor English, Shaw’s chief financial officer, told the tribunal the merger was necessary to help the company compete. “[Shaw] didn’t see a viable path forward as a standalone company,” English said.

Image credit: Shutterstock 

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Shaw’s financial officer says Roger’ merger needed to help it compete

Rogers’ plans to merge with Shaw will offer the latter company a lifeline to compete effectively, the Competition Tribunal’s hearing into the merger was told Monday.

Trevor English, Shaw’s chief financial officer, said the company didn’t see a path forward as a standalone company and consolidating within the telecom sector was something they thought about before, he said.

“We’ve really felt like the best outcome for all constituents was a partnership and a sale to a strategic operator that has the operational scale to effectively compete in the future,” English said during his testimony.

Shaw entered the wireless market through the purchase of Wind Mobile in 2016. The company was later rebranded to Freedom Mobile. English said the company has had difficulty competing with Telus in Western Canada.

The hearing is currently in its third week and will conclude next month. The panel will deliver its decision in January.

Image credit: Shutterstock

Via: Bloomberg