A man enters the store at the new Freedom Mobile brand in Toronto on Thursday, November 24, 2016. Carelton University professor Dwayne Winseck says it will not be easy for Videotron Ltd., which operates only in Quebec and parts of the world. of eastern Ontario, which borders Quebec, to expand nationally, making it the least challenging for Rogers. THE CANADIAN PRESS / Nathan Dennett The decision of Rogers Communications Inc. to sell Shaw’s Freedom Mobile wireless provider to Videotron Ltd. owned by Quebecor Inc. will simply create a “weaker” competitor in the market, a telecommunications observer said on Monday. Carleton University professor Dwayne Winseck said it would not be easy for Quebec-based Videotron to expand nationally, making it less controversial for Rogers. Winseck said Videotron, which operates only in Quebec and parts of eastern Ontario, has had national ambitions for some time, but has no recognition and has not been able to reach strong deals with other national carriers, despite having enough deep pockets. Over the weekend, Rogers said he would sell Freedom in Quebecor for $ 2.85 billion as the acquisition of Shaw Communications Inc. appears to be nearing completion. with $ 26 billion, arguing that the move would give Canadians “competition and choice.” The deal will make Quebecor buy all of Freedom’s branded wireless and internet customers, as well as its infrastructure, range and retail locations. Winseck, whose media and communications expertise stands out, points to Shaw’s strong presence in Western Canada and the fact that its Shaw Mobile wireless service will not be sold as part of the merger as another reason why It will not be easy to use Videotron as it seeks to expand across Canada. The Competition Bureau is seeking to block the merger amid concerns it would significantly reduce wireless competition and the sale of Freedom was widely expected to be subject to regulatory approval. In new submissions to the Competition Tribunal on Friday, the regulator extended its opposition to the proposed takeover, disputing the telecommunications giant’s claims of efficiency and financial benefits, while arguing that consumers will be faced with higher prices. Rogers, Shaw and Quebecor said the deal would effectively address competition concerns and keep alive a “strong and viable” fourth wireless operator in Canada. “I do not think it will go far enough for the Competition Bureau,” Winseck said. However, some analysts believe the sale will advance the deal and stifle bureaucratic competition concerns. “We believe this deal raises the prospect of closing the transaction to more than 95 percent,” Canaccord Genuity analyst Aravinda Galappatthige wrote in a note to customers. “We believe that the strong business history, balance sheet, know-how and asset mix (of Quebec) will make it more difficult for regulators to argue that the competitive landscape of the Canadian wireless network will be substantially affected by the merger (Rogers). ) “, Said Desjardins. analyst Jerome Dubreuil in a note to customers. Quebecor was not the only candidate in the mix that led to this decision. Anthony Lacavera of Globalive Capital had strongly expressed his company’s interest in buying Freedom, formerly Wind Mobile, which he founded in 2008. Halifax-based Eastlink and Xplornet Communications Inc., a rural internet provider based in New Brunswick, he was also said to be interested in Freedom. Winseck does not believe there is another buyer that would create a fairly strong fourth competitor. “For me, the only viable alternative would be to have someone who is not one of the existing players take over Shaw lock, stock and barrel,” he said. So far, the Rogers-Shaw transaction has been approved by the Canadian Broadcasting and Telecommunications Commission. Approval is still required from the Office of Competition and Innovation, Science and Economic Development of Canada. The Competition Court hearings on the matter are scheduled to begin in the week of November 7th. Rogers and Shaw were among the top companies in the Toronto Stock Exchange, gaining 6.4 and 8.3 percent, respectively.
