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
NEW Life got in the way of one woman's reunion with her father, but a DNA test gained her a family
Anne Marie Cavner was the closest she'd ever been to meeting her biological father, but then life dealt her a blow. From an unexpected loss to a host of new relationships, a DNA test changed her life, and she doesn't regret a thing.
NEW Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Quebec Health Department reports 28 cases of eye damage linked to solar eclipse
Quebec's Health Department says it has received 28 reports of eye damage related to the April 8 total solar eclipse that passed over southern parts of the province.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
opinion I've been a criminal attorney for decades. Here's what I think about the case against Trump
Joey Jackson, a criminal defence attorney and a legal analyst for CNN, outlines what he thinks about the criminal case against Donald Trump in the 'hush money trial.'
$3.8M home in B.C.'s Okanagan has steel shell for extra wildfire protection
A home in B.C.'s Okanagan that features a weathering steel shell designed to provide some protection against wildfires has been listed for sale at $3.8 million.