Tag: Rogers Shaw Merger

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Rogers reports financial, wireless subscriber, growth in first earnings report post Shaw acquisition

Rogers Communications earned $3.8 billion in revenue in the first quarter of 2023.

Revenue from its services saw a 4 percent increase compared to the first quarter of 2022, and growth in wireless service revenue (up 7 percent year over year) played a role.

This was primarily due to higher revenue from roaming services due to increased travel. Rogers also reports its net postpaid mobile subscriber count grew by 95,000, increasing the figure by 29,000 year over year. Revenue from wireless equipment also increased by 22 percent, mainly due to device upgrades.

This is the company’s first quarterly release post-Shaw acquisition. Rogers received final approval on April 3rd, which also saw Québecor subsidiary Vidéotron acquire Freedom Mobile.

However, Rogers has attained half a million Shaw Mobile subscribers. The company has also acquired 2 million Fibre+ subscribers, nearly 1.7 million video subscribers, and almost 1 million home phone subscribers.

Rogers has agreed to provide Québecor with certain services, including allowing Freedom subscribers to access Shaw’s business “Go Wi-Fi” hotspots.

As of March 31st, Rogers reached 2,000 communities across Canada. In the last quarter, it also activated 24,000 mobile services plans for newcomers at airports in Montreal, Calgary and Toronto.

More to come…

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Rogers moving Shaw’s outsourced customer service jobs back to Canada

Rogers says it’s moving customer service jobs Shaw once redistributed back to Canada.

A press release detailing the announcement doesn’t say where the jobs are moving back from, just that they’re “currently based outside of Canada.” The relocation will bring the positions to B.C., Alberta, and Manitoba.

Back in 2018, more than 3,000 Shaw employees took the company up on a buyout program. The focus was to make its customer delivery model more digital facing. Speculation about the company outsourcing customer service jobs was high, but Shaw said little about the matter.

The press release further details the service roles focus on phone calls and online chats with customers. The company says customer care roles will be implemented by Canada Day, and all jobs will officially be moved back by the third quarter.

Rogers completed its acquisition of Shaw on April 3rd after it received final approval from Innovation Minister François-Philippe Champagne.

Image credit: Shutterstock 

Source: Rogers

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Canadians aren’t confident the government is doing enough for affordable telecom services: poll

A new poll shows the majority of Canadians are concerned about monopolies and the way they impact prices.

The data from Mainstreet Research shows 92 percent of those surveyed blame market concentration for higher prices across grocery and telecom sectors. A further 69 percent said current competition regulations are benefiting large companies at the expense of consumers.

Results are based on automated telephone interviews conducted between March 29th and 30th. The sample consists of 1267 adults residing in Canada and represents the country’s voting population.

According to the Canadian Radio-television and Telecommunications Commission’s 2019 monitoring report, the big three (Bell, Rogers, and Telus) controlled 91 percent of the mobile and internet services market, and Canadians believe this is a problem.

Polling results show 72 percent of Canadians aren’t confident the government is doing enough for affordable and competitive telecom services in Canada; the results label 44 percent as “strongly not confident.” A majority of respondents who felt this way reside in Alberta and Ontario.

“Industry Minister François-Philippe Champagne just permitted the Shaw buyout, crowning Rogers the single largest company in our telecom sector in one of the biggest buyouts the country’s ever seen,” OpenMedia Campaigns Director, Matt Hatfield, said.

“These clear poll results should be setting off alarm bells in government offices across the country: band-aid solutions aren’t enough.”

The Minister’s approval was the final step Rogers needed to complete its $26-billion takeover of Shaw. Vidéotron was also approved to take over Freedom Mobile from Shaw in an effort to create a fourth leading wireless provider. Despite the approval, critics have voiced their concerns about the merger, arguing the approval will come at a cost to Canadians.

The poll further shows 83 percent of Canadians believe the current costs of internet and mobile services are impacting their budget, with 44 percent labeling the action as significant.

Source: OpenMedia

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Mobile Syrup

Rogers began talks to acquire BAI long before TTC violence: Staffieri

Rogers is selling Freedom Mobile to appease federal bodies. Image credit: Shutterstock

Rogers started the process to acquire BAI a year ago.

Rogers president and CEO Tony Staffieri said the action came after customers told the company they needed connectivity when utilizing the subway.

“We quickly got into talks with BAU about buying that contract. We wanted access; we wanted to provide the connectivity,” Staffieri said at the Canadian Club. “The easiest way was to just buy out the Canadian subsidiary, which the biggest asset is this contract.”

The announcement comes during a volatile time for the TTC with the uptake in violence in recent months.

However, service won’t come right away. It’s going to take Rogers two years to implement 5G services underground.

Staffieri said the company would only have upwards of three hours every night to implement the network while the subway is shut down. The transit agency has committed to giving the company “as much time as possible,” Staffieri said.

It’s going to take approximately nine months to implement the service through 3G and 4G. Staffieri notes that access will come through phases, with the ability to contact 911 coming first, followed by text messaging, voice services, and finally, video streaming.

Staffieri further promised the service would work for all subway users regardless of provider, granted these companies sign on to the network.

“If Bell [and] Telus want to step up and join in, we’re happy and open to having those discussions with them. There’s no intent to prevent any customer, regardless of what network they’re on, to have access within the TTC subway system.”

Staffieri’s speaking engagement was the first after Rogers recieved final approval to takeover Shaw in the largest telecom merger in Canada.

It’s going to take 24 months to integrate Shaw into Rogers, and he said customer experience is the most important thing Rogers is keeping in mind.

“If we are successful in executing what we say we’re going to do, then five years from now, we are the brand and the company that Canadians choose first every day; more than Bell, Telus, or Vidéotron,” Staffieri said.

Image credit: Shutterstock 

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Freedom Mobile is now a Québecor brand

Québecor subsidiary Vidéotron has completed the acquisition of Freedom Mobile from Shaw under the company’s move to merge with Rogers.

Through Vidéotron and Freedom, Québecor has more than 3.5 million mobile services customers, a press release from the company states.

“The alliance of Freedom and Vidéotron will permanently transform Canada’s wireless market for the benefit of consumers and create a new competitive environment that delivers innovative products and services at better prices,” Pierre Karl Péladeau, president and CEO of Québecor, said.

The move also solidifies a settlement between Vidéotron and Rogers. In October 2021, Vidéotron filed to sue Rogers for $850 million relating to an alleged breach surrounding a network-sharing deal. Vidéotron didn’t provide specifics but did say the two companies are working together to continue with the agreement.

Freedom’s ownership switch has been completed just days after Innovation Minister François-Philippe Champagne approved Rogers’ $26-billion takeover of Shaw. The companies agreed to sell Freedom to Vidéotron in a $2.85 billion agreement.

Champagne granted approval after Québecor agreed to a number of conditions, including providing plan options that are 20 percent cheaper than the main competitors, Bell, Telus, and Rogers.

Source: Vidéotron

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‘It’s really sad for Canada:’ Vidéotron finalizes Freedom purchase after government approval

Ottawa’s approval of Rogers’ $26-billion Shaw takeover has left Anthony Lacavera surprised.

The Chairman of Globalive and founder of Wind (which became Freedom Mobile after a sale to Shaw) said the merger received mountains of opposition from various parties and organizations. “It’s a complete disaster for Canadians and for Canada,” Lacavera told MobileSyrup.

The approval means Québecor subsidiary Vidéotron is now a national wireless company through Freedom Mobile with customers in Ontario, Alberta, and B.C.

Innovation Minister François-Philippe Champagne has subjected Rogers and Vidéotron to 21 different conditions focusing on affordability and the accessibility of wireless services.

But the Public Interest Advocacy Centre (PIAC) says these conditions are “smoke and mirrors.”

“We do not believe the conditions obtained by the Minister can counteract the anti-competitive effects of this merger on Canadians, and will lead to another decade of high wireless prices for Canadians,” John Lawford, PIAC’s executive director, said in a press release.

The details on the specifics of the agreement are sparse. One condition Vidéotron has promised is to offer plans that are 20 percent cheaper than major players. However, without the specifics, it’s unclear how the Minister would enforce this.

“These things are impossible to track and enforce,” Lacavera said. “There are all kinds of ways that the big players have historically and will now going forward get around these types of undertakings.”

The Liberal government started this week off by providing Canadians with a little bit of hope surrounding the telecom sector through affordability measures in the federal budget. Coupled with Champagne’s opposition to roaming fees, the government painted a short-lived picture of affordability.

“It’s a massive betrayal that’s only made worse coming from a government that has long-promised improved telecom affordability,” Laura Tribe, the executive director of OpenMedia, said.

“Despite press releases claiming otherwise, Minister Champagne’s putting the nail in the coffin of competition in telecommunications in Canada.”

Tony Staffieri, Roger’s president and CEO, said the company is pleased with the decision. “Building on a shared legacy with Shaw, we will invest substantially to bring more choice, more value, and more connectivity to Canadians across the country,” he said in a press release.

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Minister approves Rogers $26 billion Shaw takeover

Innovation Minister François-Philippe Champagne has approved Rogers’ merger with Shaw and Vidéotron’s acquisition of Freedom Mobile.

Both agreements are subjected to multiple conditions.

 

More to come…

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Telecom news roundup: CRTC to review internet competition [Mar. 4-10]

The Canadian Radio-television and Telecommunications Commission (CRTC) has moved to reduce wholesale internet rates in Canada.

More details on that, and a roundup of some of the other telecom news this week, are recapped below.

Business

Telus has rolled out the next generation of Optik TV. Updates include personalized profiles, universal search and voice remote access.

Ericsson Canada appointed Jeanette Irekvist as its new president.

Telus has expanded its health program to offer 1,000 free counselling sessions for women through the Telus Health app.

The CRTC has launched a review to increase internet competition. The Commission has also ordered larger providers to cut some wholesale rates by 10 percent, which has been met with positive reactions.

Virgin Plus changed its overage data plan charge.

SaskTel shared details on phase six of its Rural Fibre Initiative, which will be available to an additional 48 communities.

Rogers’ CEO Tony Staffieri says the company is finalizing merger details as it awaits approval from Innovation Minister François-Philippe Champagne.

Government

Conservative MP Dan Mazier says small internet service providers support his push to have telecom companies share internet download and upload speeds with customers under Bill C-288.

Canadians are still paying for some of the highest wireless and broadband internet prices in the world, according to a recently released government study.

Deals

Rogers and its flanker brand Fido are offering customers one free day of roaming. The offer expires on March 31st.

Rogers is offering Fido customers a special internet offer priced at $69.99 a month. More details are available here.

Virgin Plus, Koodo, and Fido roll out $10/month discounts on select online plans.

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Rogers finalizing merger details as it awaits Minister’s approval: CEO

Rogers’ CEO Tony Staffieri says the company has been solidifying its “integration plans” as it waits for approval from Innovation Minister Francois-Philippe Champagne.

“The time has allowed us to do is solidify our integration plans while at the same time, over the last year and a bit, we went through a bit of our own transformation within each of our businesses, within wireless and cable and media,” Staffieri said at Scotiabank’s TMT conference Tuesday, as reported by Cartt.

The Minister is responsible for approving Vidéotron’s acquisition of Shaw’s wireless licenses through Freedom Mobile. The deal plays a major role in Rogers’ $26-billion takeover of Shaw.

“We’re entering the transaction from a stronger position than we would’ve been 16 months ago, so that’s been really helpful,” Staffieri said. “In terms of the execution steps that we have, they are locked and loaded and ready to go since we’ve had more time to do it. So at a very structural level — more preparedness, the environment is better as well.”

At the February 13th Industry and Technology committee meeting, Champagne said “there will be a decision in due course.” Rogers, Shaw and Québecor recently extended their self-imposed deadline to March 31st.

Via: Cartt

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Rogers says wholesale arrangements with Vidéotron not ‘preferential’

Rogers is asking the Canadian Radio-television and Telecommunications Commission (CRTC) to reject TekSavvy’s request that the company give competitors the same wholesale rates it says it will offer to Vidéotron.

TekSavvy’s January 20th file refers to information Rogers shared during the Competition Tribunal’s hearing examining the Competition Bureau’s push to block Rogers’ takeover of Shaw and Vidéotron’s acquisition of Freedom Mobile.

Representatives from Rogers shared Vidéotron will have access to discounts for wholesale high-speed access services, wireless domestic roaming services, and wireless backhaul services.

TekSavvy argues the arrangement violates the Telecommunications Act. “The Commission should either void the Rogers-Vidéotron wholesale arrangements, or order Rogers to offer access to the same terms for wholesale services as those enjoyed by Vidéotron,” TekSavvy wrote in its application.

In Rogers’ response, the company said there is “no basis” for the relief TekSavvy requested. “In any event, the rates in the pending Rogers-Vidéotron agreements are not unduly preferential.”

Bell’s response

TekSavvy also says “undue preference” is present with Bell and its affiliate EBOX. Bell acquired the Quebec-based company last year. 

“Bell and EBOX have made public statements that Bell is offering fibre-to-the-premises services (FTTP) to EBOX. It is clear that these FTTP services are not made available to EBOX via Bell’s established disaggregated tariffs,” TekSavvy’s application says.

But in its response, Bell says that’s not the case.

“The allegation is completely unfounded,” Bell says. 

The company says EBOX isn’t a stand-alone company, but has been combined with Bell.

“There can be no agreement, off-tariff or not, preferential or not, between Bell Canada and EBOX since they are the same corporate entity.”

Bell says the only undue preference allegation in TekSavvy’s application is between Rogers and Vidéotron.

Rogers and Shaw are reaching the two-year mark of announcing plans to merge. However, they still need approval from Industry Minister François-Philippe Champagne. The Minister is responsible for approving Vidéotron’s acquisition of Shaw’s wireless licenses through Freedom Mobile. Champagne has stated multiple times that a decision will come “in due course.”

The Competitive Network Operators of Canada and OpenMedia are part of the various organizations that supported TekSavvy’s application, which is now closed for comments.

Image credit: Shutterstock 

Source: CRTC