The head of Rogers Communications Inc. pledged to lower costs for customers and brushed aside competition concerns after the company closed its $26-billion purchase of Shaw Communications Inc. on Monday.
B次元官网网址淲hat we want to make sure we get right is all the things for our customers, and in particular, affordability,B次元官网网址� Rogers CEO Tony Staffieri said in an interview.
B次元官网网址淥ne of the key pluses of this is that competition is going up, especially in the west, and prices are going to come down.B次元官网网址�
The deal, which was first announced in March 2021, cleared its final regulatory hurdle last week after Industry Minister Fran莽ois-Philippe Champagne agreed to the transfer of Shaw-owned Freedom MobileB次元官网网址檚 wireless licences to Quebecor Inc.B次元官网网址檚 B次元官网网址tron.
But though he signed off on the deal, Champagne issued a stern warning to the companies involved as he announced 21 B次元官网网址渆nforceableB次元官网网址� conditions that Rogers and B次元官网网址tron must adhere to, aimed at bolstering competition and reducing costs for customers.
Staffieri noted that the conditions formalized many of the commitments Rogers had made in the two years leading up to OttawaB次元官网网址檚 approval, including the establishment of a second headquarters in Calgary and adding 3,000 new jobs based in Western Canada.
Rogers must also spend $5.5 billion to expand 5G coverage and additional network services, as well as a further $1 billion to connect rural, remote and Indigenous communities.
In addition to the creation of digital and technology positions focused on B次元官网网址渂uilding networks,B次元官网网址� Staffieri said Rogers also plans to add more B次元官网网址渃ustomer-facingB次元官网网址� jobs. He said those should be expected B次元官网网址渞ather quickly,B次元官网网址� though when pressed on a timeline he pointed to the five-year timeline set out in the agreement.
The CEO said he planned to fly to Western Canada on Tuesday morning, where he will make stops in Vancouver and Calgary, to get the ball rolling.
B次元官网网址淲e fully expect Canadians to hold us accountable to do all the things we said we were going to do and weB次元官网网址檙e very proud to do it,B次元官网网址� Staffieri said.
In an attempt to ease competition concerns raised by the original proposal, Rogers and Shaw agreed in June 2022 to sell ShawB次元官网网址檚 Freedom Mobile business to B次元官网网址tron for $2.85 billion. FreedomB次元官网网址檚 sale was also finalized on Monday.
As part of B次元官网网址tronB次元官网网址檚 conditions, the company must offer plans that are at least 20 per cent lower than its competitors and spend $150 million over the next two years to upgrade Freedom MobileB次元官网网址檚 network.
If Rogers breaches its conditions, it must pay up to $1 billion in damages. B次元官网网址tron would potentially be subject to $200 million in penalties if it fails to meet its commitments.
B次元官网网址淲e are very pleased to be closing the acquisition of Freedom Mobile today, bringing its Canadian footprint as well as the expertise and experience of its employees into our fold,B次元官网网址� said Quebecor president and CEO Pierre Karl P茅ladeau in a news release.
B次元官网网址淭he alliance of Freedom and B次元官网网址tron will permanently transform CanadaB次元官网网址檚 wireless market for the benefit of consumers and create a new competitive environment that delivers innovative products and services at better prices.B次元官网网址�
Champagne also announced his department would not allow any further transfers of wireless spectrum until it completes a review of CanadaB次元官网网址檚 spectrum transfer framework.
Staffieri disputed some criticsB次元官网网址� characterization that the takeover would harm competition in CanadaB次元官网网址檚 telecommunications sector. He said Rogers looks forward to competing with the revamped B次元官网网址tron.
B次元官网网址淭his whole transaction has always been about increasing competition and ultimately, thatB次元官网网址檚 what the federal courts found B次元官网网址� that the series of transactions, namely us buying Shaw and Quebecor buying Freedom, was going to increase competition in the marketplace,B次元官网网址� he said.
B次元官网网址淚f we were to look to south of the border, there youB次元官网网址檒l see a market size 10 times that of Canada, and they have three players. So in fact, we have even more players in the telecom space than you would see in the U.S., and if you compare it to others in the world, we have amongst the most competition in all of our markets.B次元官网网址�
B次元官网网址擲ammy Hudes, The Canadian Press
READ MORE:
