Rogers, Shaw may need to consolidate more mobile resources: report

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Rogers and Shaw last week agreed to sell Shaw-owned cellular business Freedom Mobile to Montreal-based Quebec

The Canadian Competition Bureau is expected to ask Rogers Communications to sell Shaw Mobile, Shaw Communications’ cellular unit, to overcome the competition concerns posed by the proposed merger between Rogers and Shaw. Reuters The news was reported quoting two sources familiar with the matter.

The Canadian Competition Bureau has suspended Rogers’ proposed purchase of Shaw because it believes the deal will negatively affect competition in the domestic telecom sector, leading to increased mobile bills for customers.

In a move to allay these concerns, Rogers and Shaw agreed last week to sell CAD2.85 billion ($ 2.20 billion) to Freedom Mobile, Shaw-owned cellular business, to Montreal-based Quebec. But the country’s Competition Bureau has previously said that selling Freedom Mobile would be insufficient to increase competition in the Canadian mobile telephony market. Reuters Report

“Our agreement with Quebecor to sever independence is an important step in completing our proposed integration with Shaw. We firmly believe that DeVistcher will serve the Government of Canada’s goal of becoming a strong and sustainable fourth wireless service provider, ”said Tony Staffier, President and CEO of Rogers.

Under the terms of the agreement, Quebecor receives all of Freedom Mobile’s infrastructure, spectrum and retail locations. The agreement also includes long-term roaming and backhaul and backbone service agreements between operators.

According to the report, it is not clear whether Shaw Mobile’s sales will satisfy the Competition Bureau or demand further discounts for approval of the merger.

Launched in 2020 to provide low-cost cellular services to Shaw Internet subscribers, Shaw Mobile has about 450,000 subscribers in western Canada.

In March last year, Rogers Communications announced that it would purchase Shaw Communications in a CAD20 billion deal.

The transaction has already been approved by Shaw and the Court of Queens Bench of Alberta, and the Canadian Radio-Television and Telecommunications Commission (CRTC) has approved Rogers’ acquisition of Shaw’s broadcasting services, subject to terms and conditions designed to ensure security. That transaction benefits Canadians. The transaction will be subject to approval from the Canadian Competition Bureau and the Ministry of Innovation, Science and Economic Development.

Rogers and Shaw have pledged more than 2 2 billion in 5G network expansion, a new public fund to help connect rural and indigenous communities, promise new jobs and finance infrastructure for government projects, and more.

Currently, Canadians have four options for mobile operators – Rogers, Shaw, Telus Corp. And BCE Inc. – But if the agreement is approved, there will be a lower provider for Canadians to choose



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