Rogers Communications Intends To Buy Shaw Communications For $26 Billion….. This Cannot Be Good For Canadians

The news dropped this morning that Rogers Communications has signed a deal to purchase Shaw Communications in a transaction that’s valued at $26 billion.

This transaction will create Canada’s most robust wholly-owned national network, and as a result of the combined teams and enhanced capacity, will generate more choice and competition for businesses, as well as realizing the full benefits of next generation networks for Canadians and Canada’s productivity. Once the transaction is complete, the companies plan to invest $2.5 billion in 5G networks across Western Canada, which is expected to create up to 3,000 net new jobs.

It also will likely remove Shaw Communications and Shaw owned Freedom Mobile from the telco landscape in Canada. So that cannot be good for Canadians. But Rogers did say this:

The combined company is committed to continue offering affordable wireless plans, with no overage fees, that meet the budgets and needs of Canadians. As part of this commitment, Rogers will not increase wireless prices for Freedom Mobile customers for at least three years following the close of the transaction

That may be cold comfort for Freedom Mobile customers who hear this news. You can fully expect this deal to get a lot of scrutiny given the fact that it will result in less choice in the telco landscape. Which by extension is not good for Canadians. And you can also expect that other telcos, AKA Bell might have something to say about this. But if this deal goes through, it would make Rogers top of the food chain in the Canadian telco space.

3 Responses to “Rogers Communications Intends To Buy Shaw Communications For $26 Billion….. This Cannot Be Good For Canadians”

  1. […] Conservative party is calling for a house of commons committee study into the Rogers deal to acquire Shaw. MP Pierre Poilievre says his party will trigger hearings into the deal to ensure that it will […]

  2. […] in a negative way. I really don’t have much to say about Freedom Mobile, except that now that Rogers wants to buy Shaw, their 1.9% increase in complaints may […]

  3. […] from people who want to switch. But the biggest area where this is going to hurt Rogers is that they’re trying to buy Shaw communications at the moment. Rogers argues that this is a good thing for Canadians. Though some don’t agree. But this […]

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