Rogers said that it believed that litigation was both unnecessary and harmful to competition in the Canadian market
A mediation session between Canadian operators Rogers Communications, Shaw Communications, Quebecor and the country’s competition bureau failed to reach a negotiated settlement in the proposed merger between Rogers Communications and Shaw Communications.
“The mediation did not yield a negotiated settlement. We are disappointed with this outcome and believe that litigation is both unnecessary and harmful to competition. The Bureau’s unwillingness to meaningfully engage unduly delays lower wireless prices for Canadian consumers,” Rogers said in a release.
Rogers said it believes it will complete the merger process, adding that the company is confident in the strength and merits of its case in front of the competition tribunal.
“Once completed, our proposed series of transactions will positively transform the Canadian telecommunications industry in both the wireline and wireless segments. The combined Videotron-Freedom business will have everything it needs to compete as a stronger fourth carrier for the long term, including critical 5G spectrum.
“At the same time, the combined Shaw-Rogers wireline business will have a national network positioned to compete against the telcos for the long-term,” Rogers added.
In August this year, Rogers Communications, Shaw Communications and Quebecor entered into a definitive agreement for the sale of Freedom Mobile to Videotron, a subsidiary of Quebecor.
That transaction was subject to closing of the proposed merger between Shaw and Rogers, which had been initially announced on March 15, 2021.
The involved parties also said that the sale of Freedom Mobile would pave the way for the establishment of a “strong fourth national wireless services provider”, something that would address the concerns raised by the Commissioner of Competition and the Minister of Innovation, Science and Industry regarding the Rogers-Shaw merger.
The new combined business of Videotron and Freedom Mobile will be in a position to launch a national 5G offering, using Videotron’s 3.5 GHz frequencies.
In July, Rogers Communications said it had delayed the deadline for its CAD20 billion (currently $14.64 billion) acquisition of Shaw Communications to December 31, 2022, with the potential to extend it further to January 31, 2023.
Canada’s competition bureau had put on hold Rogers’ proposed purchase of Shaw, as it believes the deal will negatively impact competition in the domestic telecom sector, leading to increased mobile bills for consumers.
The Rogers-Shaw transaction has already been approved by the shareholders of Shaw and the Court of Queen’s Bench of Alberta, and the Canadian Radio-television and Telecommunications Commission, but remained subject to review by the Competition Tribunal and Competition Bureau and approval by the Minister of Innovation, Science and Industry.
Rogers and Shaw promised more than CAD2 billion in 5G network expansions, a new public fund to help connect rural and indigenous communities, promises of new jobs and infrastructure money for government projects and more.
Currently, Canadian residents have four options for mobile operators — Rogers, Shaw, Telus Corp. and BCE Inc.
