Rogers proposal to sell Freedom Mobile to win regulatory approval of Shaw takeover is not enough to maintain competition, says watchdog
The wireless divestitures that Rogers Communications Inc. has proposed in order to win regulatory approval of its $26-billion takeover of Shaw Communications Inc. are insufficient to maintain competition, Canada’s competition watchdog says.
The proposed new owners of Shaw’s Freedom Mobile, a wireless carrier with roughly 2 million customers in Ontario, Alberta and B.C., are “likely to provide less effective financial, managerial, technical or other support,” Commissioner of Competition Matthew Boswell said in an application. Separating Freedom Mobile from Shaw’s network infrastructure will also reduce the wireless carrier’s ability to offer bundled services, Mr. Boswell alleged.
The regulator is asking the Competition Tribunal to block the merger of the country’s two largest cable networks. The bureau is also requesting an injunction to prevent the telecom companies from closing the deal until the application can be heard. The Competition Bureau’s application, posted online Tuesday, does not specifically name the parties that Rogers has proposed selling Freedom Mobile to. The Globe has previously reported that Stonepeak Infrastructure Partners, a New York-based private equity fund that owns rural internet provider Xplornet Communications Inc., is among the potential buyers that Rogers has presented to regulators.Your time is valuable.
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