By Canadian Press

CRTC hearings begin on proposed Rogers Communications deal to buy Shaw

Nov 22, 2021 | 11:48 AM

Rogers Communications Inc. told a federal telecoms regulator hearing Monday that its proposed $26-billion takeover of Shaw Communications Inc. will enhance competition, but made no guarantees that Shaw customers won’t see rates rise.

Toronto-based Rogers told the CRTC hearing in Ottawa that the deal to increase its scale was needed to compete in the increasingly globalized market for content and rising expectations on digital offerings.

Company chair Edward Rogers, who recently won a high-profile court battle over control of the company’s leadership, said that Canada is no longer an island and telecoms providers need the resources to compete on a global stage.

Brad Shaw, chief executive of Shaw, said that the proposed deal comes at a critical turning point in the industry and that Shaw alone can’t meeting the evolving needs of Canadians.

Company representatives said the deal will mean increased competition on broadcast services in the west, especially in rural communities where Telus Corp. is often the only competition.

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Rogers, however, stopped short of assuring that Shaw customers wouldn’t see rate increases, but said that any price increases would be in line with what Shaw has been doing for decades and that stiff competition from Telus is the best check against it raising prices.

“The best assurance you have is the most incredibly aggressive competitor in the west, which is Telus,” said Dean Prevost, head of Rogers Connected Home. “Raising rates isn’t an act alone, it’s an act in a marketplace.”

The Canadian Radio-television and Telecommunications Commission is hearing from Rogers and Shaw Monday, while other interested parties including Telus Communications Inc., BCE Inc. and consumer advocacy groups are scheduled to speak throughout the week of hearings.

The commission is tasked with considering whether Rogers should be allowed to take over Shaw’s broadcast businesses including cable networks in British Columbia, Alberta, Saskatchewan, and Manitoba, the satellite-based Shaw Direct TV service, and a satellite relay system.

The CRTC won’t be considering the market implications for mobile wireless, which will be part of the reviews done by the Competition Bureau and from Innovation, Science and Economic Development Canada.

This report by The Canadian Press was first published Nov. 22, 2021.

Companies in this story; (TSX;RCI.B; TSX;SJR.B)

(The Canadian Press)