Industry Minister François-Philippe Champagne said Tuesday that the federal government has officially denied a request to allow Rogers wholesale access to Shaw’s wireless frequencies, but also set conditions for a renewed proposal.
Federal approval is one hurdle Rogers Communications Inc.’s proposed $26 billion merger must clear. with Shaw Communications Inc.
The original proposal would have seen Rogers acquire Freedom Mobile from Shaw. But Canada’s Competition Bureau said in May that the takeover would eliminate “an established, independent, low-cost competitor” and also prevent existing competition in wireless services in Ontario, Alberta and British Columbia, where Freedom currently operates .
LOOK | Champagne denies the original Rogers-Shaw deal
Industry minister denies request to allow wholesale transfer of wireless spectrum licenses between Shaw and Rogers
Francois-Philippe Champagne says he will always support more competition and making wireless services more affordable for Canadians.
Champagne announced that it officially rejected that proposal on Tuesday.
“My only concern is to provide better prices to Canadians,” he told a news conference.
In an effort to assuage those concerns, the two companies finalized a deal to sell Freedom Mobile to Videotron, a unit of Quebecor Inc., in August.
Champange said that to approve the merger under that deal, it needs a commitment from Videotron to keep the wireless licenses acquired from Shaw for at least 10 years.
The minister also said he wants the company to offer customers in Ontario, Alberta and BC wireless rates comparable to what they currently offer in Quebec, which he said are on average 20 per cent lower.
“I think they better realize what I’m going to look at and those two things will be critical,” Champagne said at the press conference.
The renewed merger agreement will have to go to Canada’s Competition Bureau before being resubmitted to the Minister of Industry.
The Canadian Radio-television and Telecommunications Commission approved the acquisition by Rogers Communications Inc. of Shaw Communications Inc. broadcast services. in march
CBC reached out to Rogers for a statement, but the company said it would not comment at this time.
Last week, NDP Leader Jagmeet Singh wrote to Prime Minister Justin Trudeau asking the government to reject the merger between Rogers and Shaw, even if the Competition Bureau clears it.
“If Rogers and Shaw succeed, it will only be because the Competition Act is weak and because your government has failed to act in the interest of making life more affordable for everyday Canadians,” Singh wrote.
“Stopping this merger is the only outcome that protects Canadians.”