Rogers and Shaw applications are pictured on a cellphone in Ottawa on Monday, May 9, 2022. THE CANADIAN PRESS/Sean Kilpatrick
OTTAWA – Rogers Communications Inc. tried to build the case for a competitive Freedom Mobile during its cross examination of BCE Inc.’s chief technology and information officer, as the hearing on its $26-billion proposed takeover of Shaw Communications Inc. continued Tuesday.
Rogers worked to show that if Quebecor Inc.-owned Videotron Ltd. purchases Shaw-owned Freedom, the combined business would become a significant player in the telecom industry, putting pressure on companies like Bell, especially since Bell does not offer bundled internet and mobility services to consumers in British Columbia and Alberta.
The proposed Videotron and Freedom deal would include multi-service bundles in this region, according to a joint statement from Rogers, Shaw and Quebecor from earlier this year.
Rogers referred to Bell documents comparing carriers that highlight Videotron’s penetration strength in the Quebec market.
Additionally, Rogers pointed to Bell’s submission to the Competition Bureau in opposition to the Rogers-Shaw merger in December 2021 and its acknowledgement of Freedom as a growing competitive threat.
The proposed sale of Freedom to Videotron is part of Rogers’ strategy to get its broader deal across the finish line.
During the cross examination, Rogers also referred to service outages Bell experienced in recent years. Rogers experienced a massive network outage that affected millions of Canadians in July.
The hearing is expected to last four weeks with oral arguments scheduled for mid-December and aims to resolve the impasse between the Commissioner of Competition and Rogers and Shaw.
The Competition Bureau is one of three regulatory agencies that must approve the deal before it can close, in addition to the CRTC and Innovation, Science and Economic Development Canada.
Rogers is hoping to close the Shaw deal by the end of the year, with a possible further extension to Jan. 31, 2023.
This report by The Canadian Press was first published Nov.15, 2022.
Companies in this story: (TSX:RCI.B, TSX:SJR.B, TSX:BCE, TSX:QBR.B)
