A woman holds two cellphones in this photo illustration, Monday March 29, 2021 in Chelsea, Que. The House of Commons Standing Committee on Industry, Science and Technology is hearing from Rogers and Shaw Communications executives on a merger. THE CANADIAN PRESS/Adrian Wyld

A woman holds two cellphones in this photo illustration, Monday March 29, 2021 in Chelsea, Que. The House of Commons Standing Committee on Industry, Science and Technology is hearing from Rogers and Shaw Communications executives on a merger. THE CANADIAN PRESS/Adrian Wyld

Shaw, Rogers chief executives testify that $26 billion deal will grow competition

Brad Shaw, Joe Natale argued the plan for Rogers to buy Shaw Communications, Freedom Mobile will help Canadians

Chief executives of Rogers Communications Inc. and Shaw Communications Inc. told MPs today that they believe every Canadian will benefit from a combination of their two businesses, which need to be bigger to be more competitive.

Both Brad Shaw and Joe Natale argued the $26-billion plan for Rogers to buy Shaw Communications and Freedom Mobile will help Canadians by allowing the companies to concentrate on building a new generation of networks.

Critics of the proposed Rogers takeover of Shaw’s cable, internet and wireless businesses argue that Canada needs more competitors in the industry, not fewer.

But Brad Shaw testified that the Calgary-based company founded by his father isn’t big enough on its own to make the billions of dollars in future investments that will be necessary for it to build a competitive 5G wireless network.

Joe Natale also said that Toronto-based Rogers — which has Canada’s largest national wireless service and one of the country’s largest cable and internet business — needs to get bigger to become more competitive by growing and updating its networks.

The proposed deal has faced stiff opposition from consumer groups, academics, customers and others since Rogers and Shaw jointly announced their agreement two weeks ago.

Critics fear that prices will go up and service quality will go down if Rogers eliminates one of its competitors — especially Shaw’s Freedom Mobile business.

Executives for Rogers and Shaw appeared in a virtual hearing of the Industry, Science and Technology committee in Ottawa. The committee will also hear from government officials, executives from other companies and consumer advocates.

In announcing the deal on March 15, Natale that he was confident of getting regulatory and government approval by early 2022.

But Natale also said the most complex part of the approvals would involve Freedom Mobile, which is a direct competitor to Rogers and its other brands in Ontario, Alberta and British Columbia.

David Paddon, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Metchosin ecologist Andy MacKinnon is raising alarm bells for arbutus trees, as many are falling victim to a fungus called leaf blights. The leaves and branches of the trees are turning brown or black and then dropping off, eventually killing them. (Dawn Gibson/News Staff)
Vancouver Island arbutus trees fighting for survival against parasites

Many trees weakened, turning black or brown and dying, says local ecologist

Applied theatre researcher Dennis Gupa wearing a traditional Filipino malong at a local beach in Victoria. (Credit: John Threlfall)
UVic researcher uses theatre to empower marginalized voices, fight climate change

Dennis Gupa looks to create new modes of expression, knowledge sharing

Sooke resident Lesa Cro started up a new pet waste removal business. Cro goes to yards in the region, removes all of the waste and then composts it, so that it doesn’t go into landfills. (Dawn Gibson/News Staff)
New pet poop-scooping business picks up in Sooke

Poop No More service taking the ‘dirty work’ out of lawn cleaning

Rachna Singh, MLA for Surrey-Green Timbers, is the Parliamentary Secretary for Anti-Racism Initiatives. (Photo courtesy of flickr.com/photos/bcgovphotos)
Vancouver resident Beryl Pye was witness to a “concerning,” spontaneous dance party that spread throughout social groups at Kitsilano Beach on April 16. (Screen grab/Beryl Pye)
VIDEO: Dance party erupts at Vancouver’s Kitsilano Beach to the dismay of onlookers

‘It was a complete disregard for current COVID-19 public health orders,’ says Vancouver resident Beryl Pye

Each spring, the Okanagan Fest-of-Ale is held in Penticton. This year, as a result of the COVID-19 pandemic, the festival will not be held. However, beer is still available. How much do you know about this beverage? (pxfuel.com)
QUIZ: How much do you really know about beer?

Put your knowledge to the test with this short quiz

Lord Tweedsmuir’s Tremmel States-Jones jumps a player and the goal line to score a touchdown against the Kelowna Owls in 2019. The face of high school football, along with a majority of other high school sports, could significantly change if a new governance proposal is passed at the B.C. School Sports AGM May 1. (Malin Jordan)
Power struggle: New governance model proposed for B.C. high school sports

Most commissions are against the new model, but B.C. School Sports (BCSS) and its board is in favour

Russ Ball (left) and some of the team show off the specimen after they were able to remove it Friday. Photo supplied
Courtenay fossil hunter finds ancient turtle on local river

The specimen will now make its home at the Royal BC Museum

Pall Bearers carrying the coffin of the Duke of Edinburgh, followed by the Prince of Wales, left and Princess Anne, right, into St George’s Chapel for his funeral, at Windsor Castle, in Windsor, England, Saturday April 17, 2021. (Danny Lawson/Pool via AP)
Trudeau announces $200K donation to Duke of Edinburgh award as Prince Philip laid to rest

A tribute to the late prince’s ‘remarkable life and his selfless service,’ the Prime Minister said Saturday

B.C. homeowners are being urged to take steps to prepare for the possibility of a flood by moving equipment and other assets to higher ground. (J.R. Rardon)
‘Entire province faces risk’: B.C. citizens urged to prepare for above-average spring flooding

Larger-than-normal melting snowpack poses a threat to the province as warmer weather touches down

Vancouver-based Doubleview Gold Corp. is developing claims in an area north of Telegraph Creek that occupies an important place in Tahltan oral histories, said Chad Norman Day, president of the Tahltan Central Government. (THE CANADIAN PRESS/HO)
B.C. Indigenous nation opposes mineral exploration in culturally sensitive area

There’s “no way” the Tahltan would ever support a mine there, says Chad Norman Day, president of its central government

Stz’uminus Elder George Harris, Ladysmith Mayor Aaron Stone, and Stz’uminus Chief Roxanne Harris opened the ceremony. (Cole Schisler photo)
Symbolic red dresses rehung along B.C. highway after vandals tore them down

Leaders from Stz’uminus First Nation and the Town of Ladysmith hung new dresses on Sat. April 17

A Western toadlet crosses the centre line of Elk View Road in Chilliwack on Aug. 26, 2010. A tunnel underneath the road has since been installed to help them migrate cross the road. Saturday, April 24 is Save the Frogs Day. (Jenna Hauck/ Progress File)
Unofficial holidays: Here’s what people are celebrating for the week of April 18 to 24

Save the Frogs Day, Love Your Thighs Day and Scream Day are all coming up this week

Most Read