Rogers-Shaw deal would give both the scale to compete globally and deliver 5G, telecoms tell CRTC

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Edward Rogers and Brad Shaw told Canada’s telecommunications regulator on Monday that Shaw Communications Inc.’s $26 billion acquisition of Rogers Communications Inc. will give both telcos the scale needed to compete effectively against global streaming giants and deliver 5G wireless services. .

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The sons of the late founders of Rogers and Shaw began five days of hearings at the Radio-television and Telecommunications Commission of Canada. The regulator is reviewing the transfer of Shaw’s broadcast distribution business to Rogers.

Mister Rogers stated that although his company’s primary competitor was BCE Inc. And there are Telus Corp., Rogers also increasingly competing with global platforms and brands.

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Bell Canada and Telus owner BCE have both asked the CRTC to decline Rogers’ application to acquire Shaw’s broadcast distribution business, which includes a satellite TV service called Shaw Direct, and to provide services to British Columbia, Alberta, Saskatchewan, Manitoba and other countries. includes cable television services. Northern Ontario.

“Today’s telecommunications networks need scale to compete globally,” said Rogers, president of both Rogers Communications and the family trust that controls the Toronto-based telecommunications.

Shaw Communications chief executive Mr. Shaw said the deep-pocketed Rogers is needed to help Calgary-based telecommunications deliver fifth-generation wireless services – an effort that will require billions of investments.

“Simply put, Shaw can’t do it alone. We need the scale, strength and resources of Shaw and Rogers’ combined assets,” said Mr. Shaw.

The hearing comes after weeks of turmoil at Rogers, culminating in the departure of the wireless giant’s CEO Joe Natale last week. Mr Nutley left the company after Mister Rogers, the chairman of Rogers and the family trust that controls the telecom, reconstituted the company’s board through a written resolution, without holding a shareholder meeting – a move that was followed by his mother Loretta. Rogers protested. , and sisters Melinda Rogers-Hickson and Martha Rogers.

Mr Natale was replaced by the company’s former chief financial officer, Tony Stafieri, which came full circle with a shakeup that began when Mr Rogers first attempted a leadership change in late September.

Two other regulators are also reviewing the acquisition – the Competition Bureau and the Ministry of Innovation, Science and Economic Development (ISED). The deal is expected to face intense scrutiny because it could end Canada’s fourth-largest wireless carrier, Shaw-owned Freedom Mobile.

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