The Feds Won’t Allow Rogers To Keep Shaw’s Wireless Assets If They Take Over Shaw Communications

I am pretty sure that people in the corner offices of 1 Mount Pleasant in Toronto which is where Rogers is located are not happy about this. But CP24 is reporting that the Canadian Government isn’t going to allow Rogers to hold onto Shaw’s wireless assets which includes Freedom Mobile if they succeed in buying Shaw Communications:

Federal Industry Minister François-Philippe Champagne said he shares many of the concerns expressed in recent months by Canadians about the proposed acquisition of Calgary-based Shaw by Toronto-based telecom giant Rogers, and will not allow Rogers to acquire all of Shaw’s wireless spectrum.

“I am strongly committed to our policies to promote competition and ensure cellphone affordability for Canadians,” Champagne said in a news release after markets closed.

“The wholesale transfer of Shaw’s wireless licences to Rogers is fundamentally incompatible with our government’s policies for spectrum and mobile service competition, and I will simply not permit it.”

This can’t have been a surprise to Rogers as both Liberal and Conservative governments in Canada have been wanting a cellular marketplace in Canada that has way more competition than it does now. Because to be frank, there isn’t any real competition in Canada’s cellular marketplace. On top of that, this deal has really faced stiff opposition from a variety of groups. So you can fully expect Rogers to face significant headwinds in getting this deal done. If they can somehow get it done as I question if they can get this over the line.

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