Industry Minister François-Philippe Champagne stated Tuesday the federal authorities has formally denied a request to enable Rogers wholesale access to Shaw’s wireless frequencies — however he additionally laid out circumstances for a revamped proposal.
Federal approval is likely one of the hurdles that Rogers Communications Inc.’s proposed $26-billion merger with Shaw Communications Inc. wants to clear.
The original proposal would have seen Rogers purchase Freedom Mobile from Shaw. But Canada’s Competition Bureau stated in May that the acquisition would get rid of “a longtime, unbiased and low-priced” competitor and would additionally stop current competitors in wireless companies in Ontario, Alberta and British Columbia, the place Freedom at present operates.
WATCH | Champagne denies original Rogers-Shaw deal
Champagne introduced he formally rejected that proposal on Tuesday.
“My solely concern is to present higher costs to Canadians,” he advised a press convention.
In an effort to quell these considerations, the 2 firms finalized an settlement to promote Freedom Mobile to Videotron, a unit of Quebecor Inc., in August.
Champange stated that so as for him to approve the merger underneath that settlement, he wants a dedication from Videotron to preserve the wireless licences acquired from Shaw for not less than 10 years.
The minister additionally stated he desires to see the corporate provide prospects in Ontario, Alberta and B.C. wireless charges comparable to what they at present provide in Quebec, which he stated are on common 20 per cent decrease.
“I believe they higher take discover of what I’m going to be and these two issues are going to be basic,” Champagne advised the press convention.
The revamped merger settlement may have to go to Canada’s Competition Bureau earlier than it’s as soon as once more put earlier than the trade minister.
The Canadian Radio-television and Telecommunications Commission accredited Rogers Communications Inc.’s acquisition of Shaw Communications Inc.’s broadcasting companies in March.