Bell competitors launch online campaign against Astral acquisition

Quebecor Media Inc., Cogeco Cable Inc.and Eastlink launched an online campaign Tuesday to generate public opposition to BCE Inc.’s proposed $3.38-billion agreement to acquire Astral Media Inc. The campaign, called “SayNoToBell,” calls on Canadians to submit letters voicing their concerns about the acquisition to the federal heritage and industry ministers, members of Parliament, and the CRTC. “What we’re doing here today is we’re going further,” Louis Audet, president and CEO of Cogeco, said at a press conference in Ottawa, where the companies announced the campaign. “We’re creating a coalition. We’re asking for the Canadian public to realize what is being done here almost secretly, and make their voice known.” The companies launched a website Tuesday, saynotobell.ca, which urges visitors to send an electronic form letter to the government and regulators. In a press kit distributed at the news conference, the companies said that if the Bell-Astral deal is approved, BCE will control 42 per cent of Canadian private commercial television revenues, 45 per cent of English-language television audiences, and 35 per cent of French-language television audiences. The three companies, which compete with BCE, said Bell would own 79 TV channels, 107 radio stations and more than 100 websites, and have the power to monopolize the Canadian broadcasting system. Lee Bragg, CEO of Eastlink, said in a release that, if approved, Bell’s audience share would be 50 per cent larger than that held by private companies in the U.S., the U.K., Japan, Australia, France, and Russia. “Giving one private broadcaster so dominant a share of the television market is bad for consumers and bad for Canada,” Bragg said. Pierre Karl Péladeau, president and CEO of Quebecor, added at the press conference: “We believe this deal would result in the creation of fewer original Canadian programs, and fewer jobs in Canadian television production. Costs will get passed on to consumers.” Péladeau said Quebecor’s commercial discussions with Bell to discuss wireless, specialty channels, or other business matters, showed “a position that was coming from an elephant perspective and never being able to be on a fair footing basis.” In a release issued Tuesday afternoon, Bell said the campaign is “clear evidence” that the landscape is becoming more competitive and the new reality worries its competitors. “While it’s understandable that our rivals would try to eliminate the competitive threat posed by Bell, consumers benefit when companies innovate, invest and compete in the marketplace, rather than playing regulatory games,” Mirko Bibic, chief legal and regulatory officer at Bell, said in the release. “The CRTC already has clear and extensive rules governing how Bell Media and other content providers sell our services, and how other distributors package them for consumers—rules we obviously respect,” he said. Bell added in the release that, following the acquisition, Bell Media’s national viewership share would be 35 per cent for English-language television and 24 per cent for French-language television. The company said “even after the Bell-Astral transaction, Québécor will still have 30% of French-language viewership versus 24% for Bell-Astral.” As part of the acquisition Bell has committed to providing $200 million in tangible benefits funding for Canadian broadcasting initiatives, Bell noted. The company also plans to auction off 10 radio stations to satisfy the CRTC’s radio ownership rules. The Competition Bureau and the CRTC must approve the BCE-Astral transaction for it to go through. The CRTC will consider Bell’s purchase of Astral through written comments and at a public hearing scheduled to start Sept. 10 in Montreal. The Competition Bureau issued a statement Tuesday saying it is “actively” reviewing concerns raised about the proposed merger of Bell and Astral. “The Bureau is aware that a number of serious concerns have been expressed by market participants related to the effect that increased concentration and vertical integration in the broadcasting industry are said to be having on consumers and other television programming providers,” competition commissioner Melanie Aitken said in a statement “Should the Bureau determine that the proposed transaction is likely to substantially lessen or prevent competition, we would not hesitate to take appropriate action.” The Wire Report reported last week on documents filed with the Federal Court that showed the bureau is looking at whether BCE is currently using its stable of specialty channels to place possible “anti-competitive” restrictions on competing broadcast distributors. dgrenier@thewirereport.ca

Bell competitors launch online campaign against Astral acquisition

Broadcast | August 7, 2012

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Bell competitors launch online campaign against Astral acquisition

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