Singh calls for halt of Rogers-Shaw merger, PIAC appeals to cabinet

NDP leader Jagmeet Singh called once again for the government to disallow the Rogers Communications Inc. takeover of Shaw Communications Inc., saying it is not in the public good. The merger will result in layoffs of staff and higher costs for consumers, he alleged. “Will the Liberals stand on the side of workers and Canadians, prevent this deal from going through and make sure we keep the prices of cellphones and cellular services low?” he asked Prime Minister Justin Trudeau in Question Period Tuesday. Trudeau did not take the bait and was noncommittal in his response. “We well know that Canadians have paid some of the highest prices for wireless and Internet in the world. That is why a number of years ago we made a pledge to decrease average cellphone bills in this country by 25 per cent, and that actually happened,” the Prime Minister replied. “We drove down prices by working to ensure that there was both competition and quality infrastructure for Canadians. We will continue to be there to make sure that access to data is affordable and reliable everywhere across the country, including with massive historic investments in rural broadband and cellphone access.” The NDP has long demanded that the Rogers-Shaw deal be canceled. Singh repeated his question in French, allowing Trudeau a chance to take a partisan shot at the previous Harper government. “Over the past five years, we have invested 10 times more than the Conservative government did during its 10 years in power to improve rural connectivity, and we will keep working on it,” he said. The CRTC approved the proposed takeover of Shaw's broadcasting properties last month. Decisions from the Competition Bureau and from the Department of Innovation, Science and Economic Development are still pending. Rogers hopes to complete the merger by the end of June. Wednesday the National Pensioners Federation (NPF) and the Public Interest Advocacy Centre (PIAC) filed an appeal with cabinet seeking to overturn the CRTC decision. Failing that, the parties are asking for the matter to be referred back to the commission. NPF and PIAC assert that the Rogers-Shaw decision derogates from broadcasting policy objectives in the Broadcasting Act. NPF-PIAC maintains that Rogers will shift cable and satellite users to internet-protocol television (IPTV) which will raise prices. They say that more than one million subscribers–450,000 cable and 650,000 satellite–will be affected. The parties estimate that each customer will pay an additional $50 per month. They point out that Rogers did not dispute those figures during the hearings into the takeover. “Instead, Rogers stood on a promise to make available some form of ‘TV-only’ option and to remain in compliance with ‘CRTC Best Practices’,” the petition reads. “However, Rogers did not commit to offering a comparable, similarly priced TV-only option to what most Shaw (cable and satellite) TV customers presently enjoy at similar prices.” NPF-PIAC further disputed the commission’s finding that Rogers would offer affordable service to low-income families and seniors. The provisions of the Act, they argue, apply to all consumers. The parties want the regulator to apply a three-year price protection plan for wireless customers, announced by Rogers when the deal was revealed, to television subscribers as well. They worry that seniors, in particular, could fall prey to aggressive and confusing sales pitches to switch to IPTV from their current service. The petition includes the results of an Environics poll conducted on behalf of the two organizations on the perceived impact of Rogers’ takeover of Shaw on costs of TV service. Among the general population, 56 per cent say costs will go up, 31 per cent believe they will stay the same and 10 per cent think they will go down. Three per cent don’t know or did not answer. Among Shaw subscribers, 68 per cent think costs will increase, 20 per cent say they will stay the same and eight per cent believe they will decrease. Four per cent don’t know or did not answer. The parties point out that the CRTC expectations of Rogers' behaviour are not legally enforceable. The commission can only consider any shortcomings at the telecom’s next broadcasting distribution undertaking (BDU) proceedings. The groups worry that Rogers will take one of two scenarios in offering IPTV service. Either it will offer similar services to today at increased rates or it will charge similar prices but offer reduced service. “Consumers cannot pay for all of the changes this industry must face, all while guaranteeing its present expectations of high profits. Consumer affordability is required,” the petition concludes. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

Singh calls for halt of Rogers-Shaw merger, PIAC appeals to cabinet

Broadcast | April 27, 2022

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Singh calls for halt of Rogers-Shaw merger, PIAC appeals to cabinet

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