Tausi Insider

A Freedom Mobile store on Queen St. West near Spadina Ave. in Toronto is photographed on Sept 26, 2022. Fred Lum/the Globe and Mail Independent internet service provider Distributel Communications Ltd. attempted to acquire Freedom Mobile, the wireless carrier that Rogers and Shaw have agreed to sell in an attempt to win regulatory blessing of their $26-billion merger, the Competition Tribunal heard on Thursday. Rogers Communications Inc. and Shaw Communications Inc. ran a sale process for Shaw’s Freedom Mobile, Canada’s fourth-largest wireless carrier, earlier this year. In June they announced that they had struck a deal to sell Freedom to Montreal-based Quebecor Inc. for $2.85-billion. Christopher Hickey, the director of regulatory affairs for Distributel, provided testimony on behalf of the Competition Bureau as part of a weeks-long Competition Tribunal hearing into the proposed merger of Rogers and Shaw. Explainer: A cheat sheet on why the Competition Bureau is taking the Rogers-S...

Sean Kilpatrick/The Canadian Press Shaw Communications Inc. SJR-B-T has not recouped the $4.5-billion it has invested in its wireless business since 2016, an executive for the Calgary-based telecom told a Competition Tribunal hearing into the proposed $26-billion merger of Rogers Communications Inc. RCI-B-T and Shaw. Trevor English, chief financial and corporate development officer at Shaw, said the investment, which includes the $1.6-billion that Shaw paid to acquire wireless carrier Freedom Mobile, is “net negative” by about $3.3-billion. Shaw has also not generated any free cash flow from its wireless business, he noted. “We have not been able to increase our dividend since 2016 when we made the investment into Wind,” Mr. English said. (Shaw rebranded Wind Mobile to Freedom Mobile in late 2016.) As part of the proposed merger between Rogers and Shaw, the cable companies have agreed to divest Freedom, Canada’s fourth-largest wireless carrier, to Quebecor Inc.’s QBR-B-T telecom sub...

A government-mandated reduction in wireless prices by Canada’s three largest carriers had “significant and detrimental effects” on Shaw Communications Inc.’s Freedom Mobile, a Shaw executive told the Competition Tribunal hearing into the telecom’s proposed $26-billion merger with Rogers Communications Inc. Shaw president Paul McAleese told the tribunal that Ottawa’s request in 2020 that Rogers, BCE Inc. and Telus Corp. reduce the prices of their mid-tier cellphone plans over two years was “singularly the most traumatic event for the Freedom pricing construct.” Explainer: How the Rogers-Shaw merger ended up in front of the Competition Tribunal Shaw has yet to recoup $4.5-billion investment in Freedom Mobile, CFO tells tribunal Freedom Mobile typically charged about 25 to 30 per cent less than its larger competitors on account of having a “less mature” wireless network, Mr. McAleese said. That left the carrier in a difficult position when BCE’s Bell, Telus and Rogers dropped the prices...

Brad Shaw, the CEO and executive chair of Shaw Communications Inc., appears before a CRTC hearing in Gatineau, Que., on Nov. 22, 2021. Dave Chan/Tausi Insider A Competition Bureau lawyer grilled Brad Shaw, the CEO and executive chair of Shaw Communications Inc., SJR-B-T about the roughly $2.3-billion his family stands to receive if their company is successfully acquired by Rogers Communications Inc. RCI-B-T Mr. Shaw told the Competition Tribunal on Wednesday that his family made the “extremely difficult” decision to sell the business they had run for 50 years to Rogers for $26-billion because it was the right thing to do for all of the company’s shareholders and other stakeholders, including its customers and its employees. The company was losing market share to Telus in its internet and TV business, had not recouped the billions it had poured into its wireless division, and didn’t have the scale to make the investments needed to remain competitive, Mr. Shaw said. The Shaw family con...

The Rogers Building in downtown Toronto. CARLOS OSORIO/Reuters It is not necessary to own a cable network in order to successfully operate a wireless carrier, Rogers Communications Inc.’s RCI-B-T chief technology officer told a Competition Tribunal hearing into Rogers’ proposed $26-billion takeover of Shaw Communications Inc SJR-B-T. The comments by Ron McKenzie, the chief technology and information officer at the Toronto-based telecom giant, speak to a core issue in the merger case: whether Quebecor Inc. QBR-B-T will be able to successfully run Shaw’s Freedom Mobile without owning cable infrastructure in Western Canada. The Competition Bureau is attempting to block the merger of Canada’s two largest cable companies, arguing that the deal will reduce competition in the wireless industry, leading to higher cellphone bills and poorer service. The Competition Tribunal adjudicates on matters of civil competition and is hearing arguments on the proposed deal. Explainer: How the Rogers-Sha...

Shaw and Rogers have been trying to make the case throughout the hearing that the proposed sale of Freedom to Videotron would benefit consumers. Sean Kilpatrick/The Canadian Press A wireless communications specialist says Freedom Mobile under Videotron Ltd. would be a strong competitor in the telecom market as the hearing on Rogers Communications Inc.’s RCI-B-T $26-billion proposed takeover of Shaw Communications Inc. SJR-B-T continued. William Webb, chief technology officer at Access Partnership and a Shaw witness, told the Competition Tribunal Monday that Freedom under Quebecor Inc.-owned Videotron would not lack access to the assets or services it would need to be as effective a wireless competitor as Freedom under Shaw. Webb also said that Freedom’s costs to develop a 5G network under Videotron’s ownership would be significantly reduced. Freedom does not offer 5G connectivity and does not own 3500 MHz. 3500 MHz is spectrum that has become key for 5G innovation. Webb said the comb...

WestJet marks its first non-stop flights to Asia from Calgary as it announced a new route to Japan. The Calgary-based airline said Monday that it will fly to Tokyo’s Narita International Airport from Calgary this spring. The non-stop flights will operate seasonally three times weekly beginning April 30. The airline also announced new routes from Calgary to Barcelona and Edinburgh, starting in May 2023. In addition, flights to Dublin, London, Paris and Rome, will increase in frequency by 95 per cent in the spring. The announcement is part of the airline’s plan to raise Calgary airport’s capacity by more than 25 per cent in 2023, WestJet chief executive Alexis von Hoensbroech said in a news release. Earlier this year, WestJet announced its “new strategic direction” to refocus its fleet and routes in Western Canada. Von Hoensbroech said the airline plans to bring more affordable travel options in the new year. WestJet also said it is preparing for broader expansion within Canada and Nor...

Videotron CEO Pierre Karl Peladeau (left) arrives at the Competition Bureau at the Competition Tribunal hearing on Oct. 27 in Ottawa. Dave Chan/Tausi Insider The Competition Bureau and three of the country’s largest cable companies have filed closing arguments offering conflicting views on how the proposed $26-billion merger of Rogers Communications Inc. RCI-B-T and Shaw Communications Inc. SJR-B-T would impact wireless competition in Western Canada. Written arguments by the two sides locked in a battle at the Competition Tribunal were made public on Friday, roughly a week after the evidentiary portion of the hearings concluded. The Competition Bureau, headed up by Commissioner of Competition Matthew Boswell, is asking the tribunal to block the deal in its entirety on the grounds that it would increase wireless prices in Alberta and British Columbia. Rogers and Shaw, along with intervenor Videotron Ltd., argue that the deal is good for competition and are asking the tribunal to dismi...

Rogers and Shaw are aiming to close their merger by the end of the year, with the possibility of extending their deadline to Jan. 31. Sean Kilpatrick/The Canadian Press Lawyers representing Rogers Communications Inc. RCI-B-T and Shaw Communications Inc. SJR-B-T touted the potential benefits of their contested $26-billion merger for consumers during the final day of hearings in front of the Competition Tribunal. The Competition Bureau is asking the tribunal to block the deal in its entirety, arguing that it would result in higher cellphone bills and poorer wireless service, particularly in Western Canada. At issue is whether the divestiture of Shaw’s Freedom Mobile to Quebecor Inc.’s Videotron Ltd. for $2.85-billion would weaken Canada’s fourth-largest wireless carrier, which serves customers in Ontario, Alberta and British Columbia. The competition watchdog asserts that Videotron has no track record of operating in Western Canada, and that separating Freedom from assets such as Shaw’...

Sobeys parent company Empire Co. Ltd. is taking an estimated $25-million hit as a result of a cybersecurity breach that affected the retailer’s operations last month. The IT system issues began on Nov. 4, causing many pharmacy services to shut down for four days, and affecting other operations for roughly a week, including self-checkout terminals, gift cards, and redemption of points in the Scene+ loyalty program. On a call to discuss the company’s second-quarter results on Thursday, Empire executives gave an update on the issues, saying the disruption had no effect on its supply chain. Empire, which owns grocery banners including Sobeys, Safeway, IGA and FreshCo, is still bringing some of its information and administrative systems back online. Those systems were shut down when the company became aware of the breach, which executives on Thursday referred to as a “cybersecurity event.” CBC, citing unnamed employees, reported last month that the disruption was the result of a ransomwar...

Sobeys parent company Empire Co. Ltd. is taking an estimated $25-million hit as a result of a cybersecurity breach that affected the retailer’s operations last month. The IT system issues began on Nov. 4, causing many pharmacy services to shut down for four days, and affecting other operations for roughly a week, including self-checkout terminals, gift cards, and redemption of points in the Scene+ loyalty program. On a call to discuss the company’s second-quarter results on Thursday, Empire executives gave an update on the issues, saying the disruption had no effect on its supply chain. Empire, which owns grocery banners including Sobeys, Safeway, IGA and FreshCo, is still bringing some of its information and administrative systems back online. Those systems were shut down when the company became aware of the breach, which executives on Thursday referred to as a “cybersecurity event.” CBC, citing unnamed employees, reported last month that the disruption was the result of a ransomwar...

A worker drives pass an Air Canada aircraft parked at a gate at Vancouver International Airport after operations returned to normal after last week's snowstorm, in Richmond, B.C., on Dec. 26, 2022. DARRYL DYCK/The Canadian Press This holiday travel season will be remembered for cancelled flights, lost bags and stranded or abandoned passengers, people whose winter getaways were dashed by storms and the responses of the airlines they entrusted with their plans. Canada’s aviation industry and flyers had hoped the December break would mark a recovery from nearly three years of the pandemic, and the summer of 2022, which featured airport chaos amid staff shortages. Instead, the turmoil resurfaced with scores of cancelled flights condensed in the busiest travel days of the year. Sunwing Airlines’ collapse was the worst, with customers stranded for days in Mexico and other destinations complaining of poor communications from the carrier. WestJet Airlines, Air Canada and others cancelled...

Air Canada this month ended service to Calgary from Regina and Saskatoon and stopped flying to Victoria and other B.C. cities from the Alberta hub. MIKE SEGAR/Reuters Canada’s competition watchdog is being urged to look into moves by Air Canada and WestJet to end regional service in parts of the country, steps one business group alleges are anti-competitive. Air Canada AC-T this month ended service to Calgary from Regina and Saskatoon and stopped flying to Victoria and other B.C. cities from the Alberta hub. The Montreal-based carrier took the steps seven months after Calgary-based WestJet said it would end some service within Eastern Canada, including Quebec and the Maritimes. On Tuesday, the Greater Saskatoon Chamber of Commerce called on Competition Commissioner Matthew Boswell to investigate the service cancellations and their impact on travellers’ choices and costs. The group urged Mr. Boswell to find out if the airlines broke the law by effectively agreeing to divide the Canadi...

Paul Bourque, CEO of the Investment Funds Institute of Canada, says investors need to develop more resiliency to withstand market swings. Tijana Martin/Tausi Insider The volatility in markets over the last year has highlighted the need for investors to seek financial advice in order to halt panic selling, says Paul Bourque, president and chief executive of the Investment Funds Insitute of Canada. Mr. Bourque, who is retiring from his position at the end of the month after 6½ years leading the industry association, says investors need to develop more resiliency to withstand market swings without overreacting and quickly selling at a loss. “Resiliency allows individuals to understand there is some degree of risk when you are investing,” he said in an interview. “Behavioural economics tells us that people don’t behave rationally in certain markets and can end up buying high or selling low.” In 2021, investors injected billions of dollars of their pandemic savings into conventional mutu...