Telecoms in Canada

[SunriseChampion]

I'm not overly concerned w/speed.

Its importance is massively overstated.

I pay for "150mbps" but because of my browser end up with speeds of around 10mbps. Everything works fine.
I guess if you're streaming seven screens of 4K nonsense......

I am concerned w/being over-priced. (relative to other similar jurisdictions).

I'm on year 4 of a "special promo" offer from Rogers where I'm paying less than half the sticker price for my internet. One just has to shop around, talk to people, get lucky, etc

That said, I'm not particularly in favour of a City-owned network............I'm just open to bullying the telcos into being less greedy.

Yeah, oligopolies and monopolies are shit. Running city-owned fibre isn't going to change the competition landscape in this country. It's not a free and open market with all manner of subsidy and it's not truly competitive because industry consolidation is allowed to well past a reasonable point.

 

[AlbertC]

Rogers is buying Shaw:

Rogers to Buy Shaw in $16 Billion Canadian Cable Deal

(Bloomberg) -- Rogers Communications Inc. agreed to buy rival Shaw Communications Inc. in a C$20 billion ($16 billion) deal that unites Canada’s two largest cable providers.The C$40.50-per-share cash offer has the support of Shaw’s board, the companies said Monday. The proposal represents a 69%...

ca.finance.yahoo.com

 

[Northern Light]

Rogers is buying Shaw:

Rogers to Buy Shaw in $16 Billion Canadian Cable Deal

(Bloomberg) -- Rogers Communications Inc. agreed to buy rival Shaw Communications Inc. in a C$20 billion ($16 billion) deal that unites Canada’s two largest cable providers.The C$40.50-per-share cash offer has the support of Shaw’s board, the companies said Monday. The proposal represents a 69%...

ca.finance.yahoo.com

There wasn't much competition before; there will be even less now, if the CRTC approves this.

I would hope they would be required to divest the cell business.

At least it should mean a one-time windfall for Canadian television.

The traditional rule of thumb, as I recall as 10% of the transaction value, so $160M

*****

Hmmm

This article values the transaction {including debt) at 26B.

Rogers plan to buy Shaw raises red flags about competition, especially in wireless

TORONTO - Rogers Communications Inc. said Monday it will buy Shaw Communications Inc. in a deal that would combine Canada’s two largest cable operatio...

www.thestar.com

From said article:

 

[Jonny5]

The price discrepancy on the deal is FX. It's CAD$20B, plus assumption of $6B in debt by Rogers. The Bloomberg article quotes $16B as a USD figure for the $20B CAD in equity.

So I guess we're rolling with Rogers, Bell, and Telus owning and mostly operating everything, with a handful of small regional providers (Videotron and Saskatel, etc..) you can count on one hand picking up the rest. 90% of the infrastructure will belong to the big three.

 

[Northern Light]

The price discrepancy on the deal is FX. It's CAD$20B, plus assumption of $6B in debt by Rogers. The Bloomberg article quotes $16B as a USD figure for the $20B CAD in equity.

Thanks for noting that.

So I guess we're rolling with Rogers, Bell, and Telus owning and mostly operating everything, with a handful of small regional providers you can count on one hand picking up the rest. 90% of the infrastructure will belong to the big three.

All the more reason to mandate proper re-selling on their fibre by third party providers at a fare wholesale rate.

Though, it would be nice if Rogers were compelled to offload the Shaw Cell business to Videotron giving us a 4th player with some capital.

 

[afransen]

Yes, they should at least be forced to dispose of Freedom Mobile.

 

[Johnny Au]

Yes, they should at least be forced to dispose of Freedom Mobile.

As a Freedom Mobile customer, it would be best if Rogers were forced to spin off Freedom Mobile.

Corus could purchase Freedom Mobile.

We don't want to be like the United States, where it has three major cell phone service providers: AT&T, Verizon, and T-Mobile (which merged with Sprint very recently).

 

[Johnny Au]

Update:

Rogers signs deal to buy Shaw in transaction valued at $26B​

https://www.cbc.ca/news/business/rogers-signs-deal-buy-shaw-1.5949825

Rogers would buy Shaw for $26B, including debt.

The deal would undergo strict regulatory scrutiny as the deal includes Freedom Mobile.

 

[christiesplits]

Update:

Rogers signs deal to buy Shaw in transaction valued at $26B​

https://www.cbc.ca/news/business/rogers-signs-deal-buy-shaw-1.5949825

Rogers would buy Shaw for $26B, including debt.

The deal would undergo strict regulatory scrutiny as the deal includes Freedom Mobile.

Oof. How is the Competition Bureau allowing this?

 

[afransen]

Oof. How is the Competition Bureau allowing this?

Hasn't gone to them yet. But they will definitely be looking at this.

 

[Admiral Beez]

What this market needs is a disruptor. Google or the like offers free internet and mobile.

 

[AlbertC]

Is the CRTC getting too cosy with big telecom? Star analysis finds major telecoms met with government and CRTC officials hundreds of times prior to reversal on wholesale internet rates​

June 12, 2021

Is the CRTC getting too cosy with big telecom? Star analysis finds major telecoms met with government and CRTC officials hundreds of times prior to reversal on wholesale internet rates

Federal lobbying records reveal more than 250 meetings between large telecoms and government officials since key 2019 ruling — while the independents only secured access 19 times.

www.thestar.com

Outline - Read & annotate without distractions

Outline is a free service for reading and annotating news articles. We remove the clutter so you can analyze and comment on the content.

outline.com

 

[AlbertC]

Thousands sign online petition condemning CRTC decision on higher internet rates​

OpenMedia describes the telecom and broadcast regulator's May 27 ruling as a "blatant attack on affordability and choice"

June 12, 2021

An Ottawa-based digital-rights group says that a federal regulator is the “biggest barrier to an affordable internet in Canada.”

In an online petition, OpenMedia claimed that the Canadian Radio-television and Telecommunications Commission (CRTC) “just screwed Canadians” by allowing large companies like Bell and Rogers to revert back to “oppressively high 2016 [wholesale] rates.”

The petition, which has attracted more than 23,000 signatures, calls on the federal cabinet to overrule the CRTC.

The regulator’s May 27 decision means that smaller Internet Service Providers – including Teksavy, Distributel, and EBOX – must pay far higher wholesale fees to the telecom giants for access to their networks.

According to OpenMedia, that will “inevitably see internet prices surge and smaller providers struggle to survive.”

“This is the most anti-customer decision OpenMedia has ever seen from the CRTC,” it stated. “Something stinks here – and it smells like a regulator that’s been captured by corporate interests.”

Thousands sign online petition condemning CRTC decision on higher internet rates

OpenMedia describes the telecom regulator's May 27 ruling on wholesale internet rates as a "blatant attack on affordability and choice"

nowtoronto.com

 

[Jonny5]

Quebecor Inc. has agreed with Rogers Communications Inc. and Shaw Communications Inc. to buy Freedom Mobile for an enterprise value of $2.85 billion, the companies said on Friday.

https://www.cbc.ca/news/business/rogers-shaw-freedom-mobile-quebecor-1.6493541

 

[DirectionNorth]

I just wanted to point out something from the article:

Canadian law allows approval of mergers that harm competition if the companies can prove the mergers bring efficiency to the economy.

Since when did "efficiencies in the economy" mean that oligarchies should be allowed?