Wednesday January 25, 2023 | LANGFORD, BC
Economic insights by Mary P Brooke | Island Social Trends
Pretty much all of us use wireless devices and the Internet. Few can afford a price increase for those services.
In the wireless service sector, prices are already high and in a near-monopoly scenario: Rogers is on the brink of buying up Shaw, which would leave only TELUS and Bell in the fully national market (though the merger would require Videotron to expand its Quebec operation across Canada for which there is no evidence of assured success).
The federal Competition Bureau yesterday was “truly disappointed” to learn that its appeal to have the merger turned down was rejected. They strongly argued that the Rogers-Shaw merger would lead to a loss of competition for consumers.
Among other things, Jeanne Pratt, a senior deputy commissioner at the Competition Bureau, told the federal committee that divesting Freedom (the mobile division of Shaw) to Videotron in Quebec wasn’t enough to “sufficiently address the anti-competitive effects of the merger” because Videotron wouldn’t have the “assets needed to compete as effectively as Shaw.”
The Minister of Innovation, Science and Industry, François-Philippe Champagne, said in a statement yesterday, that he will keep competition and affordability top of mind: “… promoting competition and affordability in the telecom sector has been — and remains — my top priority”.
The Minister of Innovation, Science and Industry makes the final call of yay/nay on the merger.
Public comments may help inform that decision. A Tweet reply to Minister Champagne by Island Social Trends this week has been popular, evidently striking a chord with independent-minded thinkers across Canada: “A merger of Rogers and Shaw would obliterate competition in the telecom sector. Consumers are already subject to chaotic and greedy practices by Rogers, and a merger would probably see Shaw customers eventually miss that company’s people-oriented service.”
Contact info for the Minister of Innovation, Science and Industry: Twitter @FP_Champagne or office email | Comment through the Ministry webpage
===== RELATED:
Small bank rate increase is still an economic shock (Island Social Trends – Jan 25, 2023)
Bank of Canada increases policy interest rate by 25 basis points, continues quantitative tightening (Bank of Canada – Jan 25, 2023)
Government of Canada welcomes budget submissions from Canadians (Government of Canada link | Dec 14, 2022)
Pre-Budget Consultations on Budget 2023 – public input (Dec 2022)
===== ABOUT THE WRITER:
Mary P Brooke is a long-time journalist and editor, delivering news through a socioeconomic lens through Island Social Trends.
Based on the west shore of south Vancouver Island, IslandSocialTrends.ca covers news of the Greater Victoria area, south Vancouver Island with insights on BC and national issues.
===== ABOUT ISLAND SOCIAL TRENDS:
Island Social Trends emerged in mid-2020 from a preceding series of publications edited by Mary P Brooke and published by Brookeline Publishing House Inc. The series: MapleLine Magazine (2008-2010), Sooke Voice News (2011-2013), and West Shore Voice News (2014-2020).
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