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
Several flight attendants from Pakistan have gone missing after landing in Canada
Multiple flight attendants from Pakistan International Airlines have abandoned their jobs and are believed to have sought asylum in Canada in the past year and a half, a spokesperson for the government-owned airline says.
BREAKING Ottawa public school board, 3 Toronto-area school boards launch lawsuit against social media giants
The Ottawa-Carleton District School Board and three school boards in the Toronto-area have launched legal action against social media giants, accusing them of "disrupting students' fundamental right to education."
Rainfall warnings of up to 90 mm among weather alerts in effect for 7 provinces
Rainfall warnings of up to 90 millimetres, air quality advisories and other alerts have been issued for seven Canadian provinces, according to the latest forecasts.
Tipping is off the table at this Toronto restaurant
A Toronto restaurant introduced a surprising new rule that reduced the cost of a meal and raised the salaries of staff.
A Nigerian woman reviewed some tomato puree online. Now she faces jail
A Nigerian woman who wrote an online review of a can of tomato puree is facing imprisonment after its manufacturer accused her of making a “malicious allegation” that damaged its business.
Donald Trump assails judge and his daughter after gag order in N.Y. hush-money criminal case
Donald Trump lashed out Wednesday at the New York judge who put him under a gag order that bars him from commenting publicly about witnesses, prosecutors, court staff and jurors in his upcoming hush-money criminal trial.
A fight to protect the dignity of Michelangelo's David raises questions about freedom of expression
Michelangelo's David has been a towering figure in Italian culture since its completion in 1504. But in the current era of the quick buck, curators worry the marble statue's religious and political significance is being diminished.
Doctors visiting a Gaza hospital are stunned by the war's toll on Palestinian children
An international team of doctors visiting a hospital in central Gaza was prepared for the worst. But the gruesome impact Israel’s war against Hamas is having on Palestinian children still left them stunned.
China's latest EV is a 'connected' car from smart phone and electronics maker Xiaomi
Xiaomi, a well-known maker of smart consumer electronics in China, is joining the country's booming but crowded market for electric cars.