Members of Parliament questioned government officials and industry experts on Wednesday about how the proposed takeover of Shaw Communications Inc. by Rogers Communications Inc. will affect the competitiveness of Canada’s telecommunications industry.
Several MPs expressed concerns about the proposed takeover during the second public hearing convened on the matter by the House of Commons industry and technology committee. The committee, which includes MPs from the Liberal, Conservative and New Democratic parties and the Bloc Québécois, recommended against the deal early last year.
The Liberal, Conservative and New Democrat MPs decided to re-examine the issue in light of the proposed divestiture of Shaw’s Freedom Mobile wireless carrier to Quebecor Inc.’s Videotron Ltd. for $2.85-billion.
The hearing took place the day after the Federal Court of Appeal handed the telecoms a major victory in a $20-billion takeover battle that has spanned nearly two years. The final approval now rests with federal Industry Minister François-Philippe Champagne, whose approval is needed for the transfer of Shaw’s wireless licences to Videotron.
Mr. Champagne said Wednesday that he is working to understand the reasoning of the Federal Court of Appeal, which on Tuesday dismissed the Competition Bureau’s challenge of a Competition Tribunal decision permitting the takeover.
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The minister has previously said that, if he were to approve the transfer, Videotron would be expected to hold on to Shaw’s wireless licences for at least a decade and commit to bringing down cellphone bills outside of its home market of Quebec, its home market.
“That’s what I’m going to be reflecting on – what are the expectations that I can demand that would ensure competition, that would ensure ... affordability,” Mr. Champagne said Wednesday. “But like I said, I’m very much in the mind of looking at the decision and rendering a decision due course, making sure that we have that competition and affordability that Canadians want,” he added.
Liberal MP Nate Erskine-Smith questioned the enforceability of Mr. Champagne’s conditions during the committee hearing, while Conservative MP Rick Perkins called on the minister’s department to release the notes from their more than 60 lobbying meetings with telecoms.
Prime Minister Justin Trudeau also addressed the deal between Rogers and Shaw on Wednesday, saying that the government’s top priority is trying to “keep prices down and keep quality high” for consumers of telecom services.
“That’s why we expressed concerns from the outset around the original proposal for Rogers-Shaw, and why we’ve been working very hard to see if there are ways to ensure continued competition in the industry while creating opportunities for better services for Canadians,” Mr. Trudeau said.
With files from Marieke Walsh
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