Last Updated: October 26, 2022, 06:55 AM IST
Canadian government and other pushed back the merger saying it will lead to less choice for consumers leading to high cell phone bills (Image: Reuters)
The govt rejected parts of the deal saying there is need for competition in the wireless industry
Industry Minister Francois-Philippe Champagne on Tuesday formally rejected part of a deal between Canadian telecom giants Rogers and Shaw to merge, insisting on the need for competition in the wireless market.
The two companies announced the Can$26 billion (US$19 billion) tie-up in March, but faced pushback as it would arguably lead to less choice for consumers and higher cellphone bills.
“Earlier this year, I stated that I would under no circumstances permit the wholesale transfer of wireless spectrum licences from Shaw to Rogers,” Champagne told a news conference.
“Today, I officially denied that request,” he said.
Anticipating the decision, Rogers had already proposed an alternative to address the concerns by selling Shaw’s Freedom Mobile subsidiary to Quebec-based Videotron.
That, too, would require Champagne’s approval and he laid out two conditions on Tuesday: Videotron must keep the acquired wireless licenses for at least 10 years and offer prices now available in Quebec and 20 percent lower on average than the rest of Canada to subscribers nationwide.
According to the OECD, internet and mobile telephone services in Canada are among the most expensive in the industrialized world.
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