Rogers Communications has met with Canada’s telecoms regulator CRTC with regards to merging its activities with those of Canada’s other pay-TV giant, Shaw Communications.
Edward Rogers, chairman of Rogerss, told a hearing that the deal would enhance, and not stymie, competition.
“Canada is no longer an island. We participate in a global industry, with global platforms that bring Canadians and people all over the world wonderful new products and services. However, they can also pose a challenge to Canadian companies and Canadian culture,” he said.
“As a country, we need to look at these global trends and understand how we can fit into them. Today’s telecommunications networks require scale to compete on the world stage. We believe passionately that the combination of Rogers and Shaw will help contribute to a stronger facilities-based future for Canadians,” he added.
Brad Shaw, executive chair/CEO of Shaw Communications, endorsed the comments saying that the decision to merge with Rogers, was to put the customer first.
“Without significant network investments in wireline and wireless, it will be impossible for Shaw to meet the evolving needs of Canadians, expand to serve more communities, and continue to put the needs of our customers first. Simply put, Shaw cannot do it alone. We need the scale, strength and resources of the combined Shaw and Rogers assets,” he said. “By joining Rogers, we will expand and accelerate the multi-generational investments needed to close the digital divide and compete more effectively across Western Canada, while expanding competition to communities that currently have little or no choice.”
However, the plan has suffered from strong criticism who suggest that, if approved, the combined business would have some 47 per cent of English-language broadcasting in Canada.