(Ottawa) Freedom Mobile would be a competitive alternative in the Canadian telecommunications market once it is bought by Videotron, according to an expert who spoke Monday during the hearings on Shaw’s takeover by Rogers.
The director of information technology at Access Partnership, William Webb, explained before the Competition Tribunal that Freedom would have everything necessary under the direction of Videotron to be competitive in the market.
He also pointed out that once purchased by Videotron, Freedom would see the costs necessary to launch its 5G network be greatly reduced. The company does not currently offer 5G, since it does not have a 3500 MHz frequency, essential for the deployment of the latest technology.
But if Freedom were bought by Videotron, 5G rollout could happen immediately, Webb said.
Videotron acquired the 3500 MHz frequency in the summer of 2021, mainly in southeastern and eastern Ontario, Manitoba, Alberta and British Columbia. Freedom offers its services in many parts of Ontario, as well as in Western Canada.
Since the beginning of the hearings before the Tribunal, Rogers and Shaw have been trying to argue that Videotron’s takeover of Freedom Mobile would be a good thing for consumers.
Quebecor agreed to buy Freedom in a $2.85 billion deal earlier this year.
This transaction would allow Quebecor to extend its mobile services offer to the west of the country, while Freedom would continue to operate under its current brand image.
Videotron’s acquisition of Freedom is part of Rogers’ larger objective to acquire Shaw, the current owner of Freedom. The objective of this sale involving Videotron is that all the licenses do not end up in the hands of Rogers, since this would have a negative effect on competition in the market, explained the authorities concerned.
Hearings before the Competition Tribunal are scheduled to last until mid-December and are aimed at breaking the deadlock between the competition commissioner, who wants to block the deal, as well as Rogers and Shaw.
The Competition Bureau is one of three regulators that must approve the transaction, in addition to the Canadian Radio-television and Telecommunications Commission (CRTC) and Innovation, Science and Economic Development Canada.
Rogers wants to close the deal with Shaw by the end of the year, with a possible extension until January 31, 2023.