Rogers CEO says contract consolidation and fourth national career should be launched
Canadian mobile network operator Rogers And Shaw Communications on Sunday announced plans to sell Shaw’s Freedom Mobile subsidiary to compete with Quebec for C 2. 2.85 billion, or 19 2.19 billion. The move paves the way for Rogers and Shaw’s proposed merger and will help build a fourth national wireless career for Canada, said Rogers President and CEO Tony Staffiri.
“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 Staffier.
Final approval for the agreement ultimately rests with the Canadian Competition Bureau and the Minister of Innovation, Science and Industry (ISED). Rogers announced plans to buy Shaw for বেশি 16 billion more a year ago. With Bell and Telus, Rogers dominates the Canadian telecom market. The high market density of Canada’s three major carriers has long annoyed Canadian regulators, who have been pushing for more market competition to reduce prices and improve the access of Canadian customers. The deal with Shaw threatens to shake up both telecom and cable business in Canada.
Not so fast, Canadian regulators say. Competition commissioner Rogers and Shaw objected to the merger and its impact on the competitive landscape of Canadian telecom. The two companies objected to the plan to dismantle Freedom Wireless. Rogers and Shaw have pledged more than $ 2 billion in 5G network expansion, a new public fund to help connect rural and indigenous communities, new job commitments and infrastructure funding for government projects, and more. But earlier this month, Rogers and Shaw announced plans to suspend the integration process until a settlement is reached.
Quebecor, which has been advocating for change in the Canadian telecom landscape, will benefit greatly from the deal. Quebecor is a Quebec-based media and communications business with deep roots in newspaper and commercial publishing. The millennial acquisition of VideoTron’s company has brought it to new digital publishing and video markets.
VideoTron is one of the few small 4G LTE network operators in Canada. Videotron enjoys a particularly strong home field advantage over other minor players in its native Quebec; It has been gradually launching 5G services since December, 2020 The deal puts VideTron on a better track to serve all Canadians, the company’s president says.
Pierre Carl Peladeu, CEO and president of Quebec, called the deal “a turning point for the Canadian wireless market.” He said the integration of Videotron’s current footprint with the extensive network of Freedom Wireless in Ontario and Western Canada would “provide specific benefits for all Canadians.”
“Quebec and Rogers have always had a strong relationship. This tripartite agreement with Shaw is another example,” Peladeu said.
Under the terms of the agreement, Quebecor acquires all of Freedom Mobile’s infrastructure, spectrum and retail locations. The agreement also includes long-term roaming and backhaul and backbone service agreements between the carriers.
