Calgary HQ part of federal conditions allowing Rogers to buy Shaw
Canadians’ options for phone, internet and TV services are changing with the federal government clearing the final hurdle for Rogers to take over Shaw, but it comes with conditions including some that specifically impact Calgary.
The $26 billion deal would create Canada's second-largest telecommunications company, as long as Rogers and Videotron meet 21 commitments outlined by Ottawa, including creating 3,000 jobs in Western Canada and a strong presence in Calgary.
“The establishment of a western headquarters in Calgary to be maintained for a minimum of 10 years” said François-Philippe Champagne, Canada’s minister of innovation, science and industry.
COULD BE GOOD FOR CITY: CED
Calgary Economic Development (CED) said the deal could be good for the city.
“To have that kind of a headquarters here, they (businesses) know that they can be really close to the mothership, and they have access to the technology that's being developed firsthand,” said Brad Parry, CEO of Calgary Economic Development.
Some people aren’t convinced it will be good for Calgary.
“Mergers often happen to find efficiencies, said Gregory Taylor an associate professor with University of Calgary’s communications, media and film department.
“So I have real concerns for job losses in the west.”
The $26 billion purchase has been two years in the making due to concerns over reducing competition.
The Rogers and Shaw deal was approved Thursday.
BUT WILL CONSUMERS PAY A PRICE?
Some consumers think they will pay a price.
“Not immediately, but in the long term, less competition is probably going to be increasing prices,” said one Calgarian biking along the Bow River.
“My Shaw is up for renewal soon so I don’t know how that will be affected,” said another Calgarian on the trail.
The federal government however says consumers will be protected.
If Rogers breaks the commitments it could face a fine of up to $1 billion.
“This is an industry that has messed with the regulator in the past. And so I don't think it's out of the question to think that they might do so again,” said Taylor.
The deal requires the sale of Shaw-owned Freedom Mobile to Quebec's Videotron.
While Ottawa says that creates a fourth major player, critics say Freedom Mobile was already that fourth option.
“This is really scary for the future of telecom in Canada, if a deal this big isn't big enough to block, I don't think anything is,” said Laurie Tribe.
Rogers must also spend $5.5 billion to expand 5G coverage and additional network services, as well as a furether $1 billion to connect rural, remote and Indigenous communities.
The take-over is expected to be complete by April 7.
CTVNews.ca Top Stories
NDP motion regarding Palestinian statehood passes after major Liberal alterations
A motion from the federal New Democrats initially calling on Canada to recognize the 'State of Palestine' passed amid widespread acrimony on Monday, after the Liberals drastically altered its wording to see the government simply work towards that aim as part of a two-state solution.
'He didn't want to die': Family of Calgary man killed in standoff speaks out
Family of a Calgary man killed after a 30-hour standoff with police last week are speaking out, sharing details of the tense and heart-wrenching experience.
Toronto family doctor who called patient's body 'perfect' suspended for 3 months: tribunal
A family doctor in Toronto has been suspended for three months after a disciplinary tribunal found that he failed to follow proper protocols while examining a patient's breasts and made inappropriate comments about her body.
Ohio mom who left toddler alone 10 days when she went on vacation pleads guilty to aggravated murder
An Ohio mother whose 16-month-old daughter died after being left home alone in a playpen for 10 days last summer while she went on vacation was sentenced Monday to life in prison with no chance of parole.
Retired teacher pleads guilty to paying for sex with 15-year-old in Collingwood, Ont.
In a Barrie courtroom on Monday, a retired high school teacher from the Niagara Region pleaded guilty to sexual touching and obtaining sexual services from a 15-year-old boy in Collingwood in 2021.
Hertz CEO out following electric car 'horror show'
The company, which announced in January it was selling 20,000 of the electric vehicles in its fleet, or about a third of the EVs it owned, is now replacing the CEO who helped build up that fleet, giving it the company’s fifth boss in just four years.
5 charged in Calgary kidnappings that targeted women
Calgary police have charged five men in a pair of kidnappings last year that targeted innocent victims.
Demand soars for solar eclipse glasses in Canada. Are they worth buying?
The demand for total solar eclipse glasses used to safely view the rare celestial event has been ramping up as sellers, along with astronomy and eye-care experts in Canada, warn that viewing the eclipse with the naked eye is dangerous.
Canadian commander of volunteer fighter group dies in Ukraine
A Canadian-born commander of the so-called Norman Brigade, a volunteer fighting group in Ukraine, has died.