On Monday, March 15, 2021 at 2:06:38 PM UTC-7,
Eric Schild aka Eric@ wrote:
> Things are going the wrong way. Shackle the CRTC not competition.
Schild - always on the wrong side of every issue. The CRTC is the only entity that will be able to save us from this corporate swallow of smaller competition.
> Rogers Communications Inc. plans to acquire Western Canadian rival Shaw
> Communications Inc. for $20.4-billion in a deal that unites two family
> dynasties in a nationwide battle for customers against BCE Inc. and Telus Corp.
>
> Shaw chief executive Brad Shaw decided his Calgary-based company could no
> longer go it alone in an increasingly competitive telecom market and needed to
> combine forces with Rogers on a planned $6.5-billion network expansion in
> Western Canada.
>
> ?5G and our urban and rural networks are critical to our customers, and we can
> move more quickly together than either of us could on our own,? he said in an
> interview with The Globe and Mail.
>
https://www.theglobeandmail.com/business/article-rogers-seeks-to-buy-shaw-for-
> 204-billion-in-deal-that-would-transform/
>
>
> Planned since 2019?
Oh, you bet . . . .
Only this move is not a 'merger'. It's a buy-out. And it's $26 Billion worth of buyout.
'You never say no': Shaw on potential Rogers merger <=== Jan 17, 2019
https://www.bnnbloomberg.ca/you-never-say-no-shaw-on-potential-rogers-merger-1.1200227
And what's happening is a scramble to go to 5G network technology without competition from as few companies as possible. Ask any sports fan what happened when Rogers took over Hockey Night in Canada from CBC. . . . $199.+tax for a yearly; or $35./mo. It's called 'Sportsnet now and it ain't free anymore. Welcome to ROGERS Communications.
This is why the 'Big Three' (Rogers, Bell and Telus) are scrambling:
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Feb 20, 2020
Telus would cut 5K jobs and $1B in spending if CRTC approves virtual wireless network operators
Telus executive tells telecom regulator that allowing MVNOs will have consequences
Executives from some of Canada's largest national and regional wireless service providers been united in their rejection of mandated MVNOs, which would be given the right to tap into their facilities.
https://www.cbc.ca/news/business/telus-opposes-mvnos-1.5470274
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Why the CRTC is moving against the Canadian communications companies - especially the big ones:
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CRTC report and recommendations from January 29, 2020 - 'Canada's communications future: Time to act'
http://www.ic.gc.ca/eic/site/110.nsf/eng/00012.html#Toc26977837
As has happened in the European Union, the United States, and other comparator jurisdictions, the CRTC has moved away from regulating rates in most retail markets in favour of relying on market forces. This includes wholesale regulation on a case-by-case basis. This regulation would promote access by competitors to the facilities and services of large, vertically integrated
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communications providers. These providers have the power to limit entry and competition in a retail market through their control of hard-to-reproduce inputs and services that less-established competitors need in order to compete in that retail market.
However, several wholesale network elements and services continue to be regulated by the Commission to promote competition, as part of a policy of mandating access to the networks of incumbent carriers by resellers and other competitors.
Prices for mobile wireless telecommunications services differ across Canada, and market structure appears to play a role in explaining these differences. The 2018 ISED pricing report finds that regional mobile wireless carriers such as SaskTel, Eastlink, Freedom, and Vidéotron offered mobile wireless service prices that were significantly lower than those of the incumbent wireless carriers Bell, Rogers, and TELUS.
The 2018 ISED pricing report also showed that Saskatchewan and Quebec, two provinces with a strong regional competitor, had lower mobile wireless service prices across all but one mobile wireless price basket, sometimes significantly so. \
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Right after the above CRTC review and recommendations, this appeared in the media:
Thursday, March 5, 2020 - CTVNews.ca
OTTAWA -- The government on Thursday closed the loop on a campaign promise to lower cellphone costs for Canadians.
Minister of Innovation, Science and Economic Development Navdeep Bains said the government will demand that the Big Three -- Bell Canada (which owns CTV News), Rogers Communications Canada and Telus Communications -- lower their prices by 25 per cent in the next two years for cellphone plans that offer two to six gigabytes of data.
He said his government has listened to Canadians’ concerns about high cellphone costs in Canada, when compared internationally.
"If these targets are not met within the two years, the Government will take action with other regulatory tools to further increase competition and help reduce prices," the ministry stated in a press release.
According to the 2019 Price Comparison Study of Telecommunications Services in Canada and Select Foreign Jurisdictions, Canada has the highest or second highest mobile wireless service rates among G7 countries and Australia.
However, according to the same data, Canadian prices have either decreased or stayed neutral in 2019 compared to 2018. The cities of Winnipeg, Montreal, and Regina are among those with the lowest costs.
The Big Three respond
Vanessa Damha, senior manager of media relations at Bell Canada, told CTVNews.ca in a statement that the company will keep a close eye on the developments, but added any policy which discourages investment "including regulating wireless pricing or continuing to deny fair access to spectrum for all competitors, put jobs and innovation at risk in an industry that’s delivering tremendous value to consumers."
Telus' manager of communications shared the same sentiment about the threat of job loss and said it’s "disappointing" to see the 25 per cent decrease apply only to national carriers.
"This is yet another punitive action taken by this government against the companies that have built Canada’s global-leading wireless networks," said Richard Gilhooley, who added that the decision "is giving [Telus] reason to think very carefully about where our next investment dollars should go."
In late February, Telus Corp. CEO Darren Entwistle made waves when he said the company would cut 5,000 jobs and draw back $1 billion in investment over the next five years should the government demand it sell access to its wireless network to smaller companies. He made the comment during a Canadian Radio-television and Telecommunications Commission hearing on wireless service.
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Summation:
Liberal government does a review (CRTC) of prices being charged by communications firms in Canada. They find that Canadians are paying, on average, 70% more than do Americans for comparable services. 70% !
Liberals give the communications companies 2 years to get their costs down. They respond by threatening to cut huge numbers of employees if they're forced to use MVNOs (Mobile virtual network operators). MVNOs don’t own and operate their own cell towers, which helps keep costs down. Many of them also do not have storefronts and operate completely online.
The current system, which has Telus, Bell and Rogers owning their own facilities, towers and outlets, allows them to control users of their systems and also the costs of using them. Under the MVNO system, any smaller carrier could tap in and therefore be more competitive in pricing to consumers.
The screaming that the Big Three did after the CRTC report and the Liberals' ultimatum, has resulted in them trying swallow up their competition. This latest 'big gulp' of Rogers consuming Shaw is big, big trouble for customers of Shaw. Rogers' history proves that.
If anyone really cares about their Shaw provider about to be a Rogers provider, write to the federal Minister in charge - with a copy to the CRTC. Time will be of the essence. (ø_ø)
Hon. Steven Guilbeault, Minister of Canadian Heritage
hon.steven...@canada.ca
CRTC
Ian Scott
819-997-3430 Chairperson and Chief Executive Officer