‘To date, we’ve not seen any data that might counsel that Rogers is providing comparable pricing to Shaw Cellular post-transaction, so that’s of a priority’
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Printed Feb 26, 2024 • Final up to date 2 hours in the past • 3 minute learn
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Sure cellphone plans in Western Canada usually are not as low-cost as they have been previous to the Rogers-Shaw merger, Canada’s competitors watchdog says.
Jeanne Pratt, the Competitors Bureau’s senior deputy commissioner of mergers and monopolistic practices, advised MPs on Monday that earlier than Shaw was bought by Rogers Communications final April, the corporate was “a very rising and disruptive aggressive drive” in B.C. and Alberta.
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“They supplied very aggressive pricing for bundled wi-fi plans,” she stated.
“To date, we haven’t seen any data that might counsel that Rogers is providing comparable pricing to Shaw Cellular post-transaction, so that’s of a priority.”
Pratt was testifying on the Home of Commons’ business committee together with representatives from the CRTC, as MPs research the accessibility and affordability of wi-fi and broadband companies in Canada.
Rogers stated it wasn’t instantly clear which wi-fi plans Pratt was referring to, however that of the cellphone plans it provides right now, each in Western Canada and nationally, none of them are costlier than previous to the merger with Shaw.
The corporate stated Pratt might have been referring to bundled packages with residential supplied to the five hundred,000 Shaw Cellular clients it absorbed. Rogers stated it has dedicated to cost freezes for 5 years for these clients.
MPs on the committee sounded the alarm in January, when Rogers confirmed costs have been going up by a median of $5 for wi-fi clients not on contract and a few Bell Canada clients have been additionally advised their wi-fi payments have been set to extend.
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The Competitors Bureau had opposed Rogers’ $26-billion takeover of Shaw, arguing that approving the merger would scale back competitors and end in greater cellphone payments, poorer service, and fewer choices for shoppers.
However the Federal Courtroom of Attraction rejected the Competitors Bureau’s bid to quash the deal final yr, after the watchdog had hoped the upper courtroom would overturn a earlier ruling from the Competitors Tribunal in favour of the pact.
As a substitute, the courtroom sided with the tribunal’s view that “there was no substantial lessening of competitors” in danger by approving the deal.
Pratt was requested by Conservative MP Rick Perkins throughout the committee assembly whether or not “that diminished competitors that you simply warned about” explains current cellphone worth hikes.
“What I can say is we have been positively involved in regards to the acquisition and the alternative of Shaw Cellular, who had been a vigorous and efficient competitor, who appeared to be driving costs and bundled merchandise down in Western Canada,” she stated.
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“Frankly, the proof confirmed that Rogers was the largest loser in that struggle.”
Scott Hutton, chief of client, analysis and communications for the CRTC, advised the committee that Shopper Worth Index knowledge reveals telecommunication service costs in Canada have declined 16 per cent within the final yr.
However he stated that’s largely in step with worldwide developments of telecom costs taking place. Hutton stated many Canadians don’t really feel their payments are getting lighter and the regulator is “definitely of the opinion that Canadians pay an excessive amount of for his or her companies.”
“Clearly, we have to proceed our work, and we will likely be intently monitoring cellphone service costs to make sure that the current worth improve introduced in January doesn’t turn into a pattern,” he stated.
The committee has invited the chief executives of Rogers, BCE Inc. and Telus Corp. to testify at an upcoming assembly, nonetheless a discover of assembly this Wednesday lists different representatives of the Massive 3 carriers who’re scheduled to seem as witnesses.
NDP MP Brian Masse tabled a movement Monday to summon the three CEOs to seem if that invitation shouldn’t be accepted.
Rogers, Bell and Telus didn’t reply to questions on whether or not their CEOs would attend.
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