Rogers – Shaw Merger Approved By Competition Tribunal… Which Means That Canadian Consumers Are One Step Closer To Being Screwed

Canadian telco consumers should prepare to have less competition in the telco space because late last night the merger of Rogers and Shaw which has been fought by Canada’s competition watchdog have been approved. CBC has the details:

In a summary of its decision released Thursday, the tribunal says the merger of the two telecommunications companies would not result in materially higher prices.

The decision says the deal, which includes the sale of Shaw-owned Freedom Mobile to Quebecor-owned Videotron, would not likely prevent or lessen competition substantially.

Quebecor agreed to buy Freedom Mobile in a $2.85-billion deal earlier this year.

Concerns that Bell and Telus — the closest competitors to Rogers in Canada’s telecom market — would be unable to compete with the combined company were also dismissed.

“The tribunal has also determined that the strengthening of Rogers’ position in Alberta and British Columbia, combined with the very significant competitive initiatives that Telus and Bell have been pursuing since the merger was announced, will also likely contribute to an increased intensity of competition in those markets,” the decision reads.

It says a more detailed decision will be released in the next two days.

I’m sorry, but this decision is horrible for Canadians because the exact opposite is going to happen as there’s going to be one less player in the marketplace. While this still has to be approved by Innovation, Science and Economic Development Canada, I expect that to be a rubber stamp as the current federal government in Canada pays lip service to having an affordable and competitive telco space. Canadian consumers might want to remember that when the next election comes and vote accordingly.

One Response to “Rogers – Shaw Merger Approved By Competition Tribunal… Which Means That Canadian Consumers Are One Step Closer To Being Screwed”

  1. […] morning I was not hopeful about the chances of Canadians getting a positive outcome in terms of the Rogers – Shaw […]

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