(OTTAWA) The families of Rogers Communications and Shaw Communications would be the big winners if the proposed $26 billion merger between the two companies goes through, and lower-income Canadians would be left even further behind, argued Friday. an economics professor.
Speaking before the Competition Tribunal, Lars Osberg of Dalhousie University said low-income Canadians, who are already dealing with inflationary pressures, would be hardest hit if telecommunications prices rise in the wake of fusion.
Mr. Osberg stressed that access to cell phones and connectivity was just as essential as food in today’s digital age.
Rogers pushed back against Mr. Osberg’s claims, pointing to the Canadian Radio-television and Telecommunications Commission’s (CRTC) decision to approve the deal and noting that the regulator had considered the impact of the merger on consumer interests, including low-income households, the elderly and people with disabilities, before making its decision.
Rogers also referenced the CRTC’s 2021 wireless review, which highlighted the expectation that carriers would offer a low-cost plan, which Rogers said it offers through its Fido brand.
In addition, Rogers outlined the company’s intention to expand its Wired for Success wireline program in Western Canada if the deal is approved. The program provides discounted high-speed and bundled internet services to low-income Canadians.
Rogers said it intends to also introduce a nationwide “Connected to Success” wireless program if the deal is approved.
Videotron’s vice-president of finance, Jean-François Lescadres, was also cross-examined in court on Friday.
During this cross-examination, counsel for the Competition Bureau referred to the 3500 MHz spectrum acquired by Videotron in 2021, which Mr. Lescadres said he planned to use to grow across Canada. even before the announcement of the merger between Rogers and Shaw.
The lawsuit on network sharing between Videotron and Rogers was also mentioned during cross-examination. Mr. Lescadres said that Videotron was hopeful that the lawsuit would be settled.
Quebecor-owned Videotron agreed earlier this year to buy Freedom Mobile from Shaw in a $2.85 billion deal.
Freedom’s proposed sale to Videotron is part of Rogers’ strategy to get across the finish line to its merger deal with Shaw.
The hearing before the Competition Tribunal should continue until mid-December and aims to resolve the impasse between the Commissioner of Competition, who wants to block the agreement, and Rogers and Shaw.
The Competition Bureau is one of three regulators that must approve the deal, in addition to the CRTC and Innovation, Science and Economic Development Canada.
Rogers wants to complete the deal with Shaw by the end of the year, but would be willing to extend its offer once again until January 31, 2023.