Canadian consumers will now see whether the companies involved in the deal live up to all the promises they have made
The biggest Canadian telecom acquisition in decades is finally going ahead after the federal government gave its blessing to Rogers Communications Inc.’s RCI-B-T takeover of Shaw Communications Inc. SJR-B-T, as well as a side deal that will see Shaw’s discount Freedom Mobile unit sold to Quebecor Inc. QBR-B-T.
What does the approved acquisition mean for existing Shaw customers? It depends on where consumers live and what Shaw services they use.For Freedom Mobile’s existing 1.7 million customers who move to Quebecor’s Videotron unit, they’ll see their data allotments increase by 10 per cent. In its December ruling, the competition tribunal said the deal could actually boost competition in Western Canada, arguing Videotron’s takeover of Freedom “will likely ensure that competition and innovation remain robust” in Alberta and B.C., and that Rogers’ own position in those two provinces will be strengthened by owning Shaw’s assets, making Rogers a stronger rival to Telus and Bell.
Ultimately, the deal helps cement Freedom’s future as a national wireless competitor, which was not certain to be the case if Shaw continued to own it, say industry watchers. The company also promises to invest $2.5-billion to expand and improve 5G network access to consumers and businesses in Western Canada.
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