New comments from federal Industry Minister Fran莽ois-Philippe Champagne suggest last weekB次元官网网址檚 massive outage at Rogers Communications Inc. could weigh on the telecom providerB次元官网网址檚 proposed $26-billion takeover of Shaw Communications Inc.
In an interview in Calgary, Champagne said last FridayB次元官网网址檚 outage that saw more than 12 million Canadians lose cell phone and internet service will be on the mind of regulators tasked with making a decision on the Rogers-Shaw merger.
B次元官网网址淭his is certainly going to be on my mind, and the mind of all Canadians. We just went through one of the most serious outages I can remember,B次元官网网址� said Champagne, who was in Calgary Friday to attend the Stampede and meet with Alberta business leaders.
B次元官网网址淪o this is going to be on the mind of the different people who need to make a decision.B次元官网网址�
While the Rogers-Shaw transaction already has approval from shareholders and the Canadian Radio-television and Telecommunications Commission, it still needs to be approved by the Competition Bureau as well as by ChampagneB次元官网网址檚 department, Innovation, Science and Economic Development Canada.
ChampagneB次元官网网址檚 comments came the same day Rogers, Shaw and Quebecor Inc. were widely expected to reach a definitive agreement on the sale of wireless carrier Freedom Mobile B次元官网网址� a $2.85-billion deal that was intended to help appease regulators mulling the Rogers-Shaw merger.
The deal would see Quebecor buy all of FreedomB次元官网网址檚 branded wireless and internet customers, as well as its infrastructure, spectrum and retail locations. Rogers, Shaw and Quebecor have argued that their agreement would effectively keep alive a B次元官网网址渟trong and sustainableB次元官网网址� fourth wireless carrier in Canada because the deal would expand QuebecorB次元官网网址檚 wireless operations nationally.
But on Friday afternoon, Rogers said a definitive agreement had not yet been reached, though all three parties continue to pursue the divestiture of Freedom Mobile on the terms set out in the previously disclosed agreement.
B次元官网网址淣egotiation of the definitive transaction documents is progressing as expected, and the parties will provide an update in due course,B次元官网网址� said Rogers spokeswoman Chloe Luciani-Girouard in an email.
Champagne said he canB次元官网网址檛 comment on the merits of the proposed Freedom Mobile divestiture. But he said heB次元官网网址檚 been very clear from the start that he will not permit the wholesale transfer of spectrum from Shaw to Rogers, and the companies will have heard his message.
Earlier this week, Champagne met with Rogers and several other telecom providers and directed them to come up with a crisis plan to improve resiliency in the sector in the event an outage like last FridayB次元官网网址檚 happens again. The plan must include agreements on emergency roaming, a B次元官网网址渕utual assistanceB次元官网网址� framework and a communication protocol to B次元官网网址渂etter inform the public and authorities during telecommunications emergencies.B次元官网网址�
But while network resiliency was the top priority at that meeting, Champagne said on Friday that competition in the sector is an important and related issue.
B次元官网网址淲e (the federal government) are going to continue to push for competition, because competition also provides a level of resiliency,B次元官网网址� he said. B次元官网网址淏ecause if you have more choices, that will improve resiliency.B次元官网网址�
B次元官网网址� Amanda Stephenson, The Canadian Press
