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
BREAKING Alice Munro, Nobel literature winner revered as short story master, dead at 92
Nobel laureate Alice Munro, the Canadian literary giant who became one of the world's most esteemed contemporary authors and one of history's most honoured short story writers, has died at age 92.
Latest updates on air quality alerts, and when the smoke may reach Ontario and Quebec
Wildfires have led Environment Canada to issue air quality advisories for parts of B.C., Alberta, Manitoba, Saskatchewan and the Northwest Territories, as forecasters warn the smoke could drift farther east.
Are these Canada's best restaurants? Annual top 100 list revealed
The annual list of Canada's top restaurants in the country was just released and here are the places that made the 2024 cut.
Attack on prison van in France kills 2 officers, inmate escapes
Armed assailants killed two French prison officers and seriously wounded three others in an attack on a convoy in Normandy on Tuesday and an inmate escaped, officials said.
Steal a car, lose your driver's licence for 10 years under new Ontario proposal
Repeat car thieves may face lengthy licence bans under proposed changes to Ontario’s Highway Traffic Act.
$1.6B parts plant for Honda electric vehicle batteries coming to Niagara Region
A Japanese company has announced it will build an approximately $1.6-billion plant in Ontario's Niagara Region that will make a key electric vehicle battery component as part of Honda's supply chain in the province.
B.C. brings in law on name changes on day that child killer's new identity revealed
The BC NDP have tabled legislation aimed at stopping people who have committed certain heinous acts from changing their names.
Manitoba premier to visit areas impacted by wildfire
Manitoba Premier Wab Kinew will get a close-up look at the devastation from a large wildfire burning in northern Manitoba Tuesday.
1 killed, 3 injured including toddler, after Hwy. 417 crash in Ottawa
Ontario Provincial Police are responding to a fatal collision involving two vehicles on Highway 417 in Ottawa's west end on Tuesday morning.