The proposed $26 billion buyout of Alberta-based Shaw Communications by Rogers won’t lessen competition, company execs told the Commons industry committee Monday..But Blacklock’s Reporter said some committee members didn’t buy the claim..“The Canadian market is intensely competitive and prices have been coming down dramatically over the last number of years,” testified Joe Natale, CEO of Rogers.“This is yet one more opportunity to combine for strength.”.Rogers on March 15 said it would buy up Shaw in a transaction subject to federal approval. Shaw dominates cable service in the four Western provinces. The buyout would leave only two large competitors, Bell and Telus..“Obviously a lot of Canadians are concerned,” said Liberal MP Ali Ehsassi (Willowdale, Ont.), parliamentary secretary for industry..“Would you agree with me that less competition should very much concern Canadians?”.“I think the most important factor around competition is having strong players that have the ability to invest in the future with new technologies and new ideas,” replied Natale..MP Ehsassi: “Your company is pretty profitable, correct?”CEO Natale: “I would agree that our company is very competitive and I would agree that – ”MP Ehsassi: “But it is profitable?”CEO Natale: “It is profitable.”MP Ehsassi: “So you would agree with me the reason why this acquisition is happening is not because you’re really hurting, you’re desperate, and you need to do these things to come up with savings, correct?”CEO Natale: “This acquisition is about looking to the future, not the present.”.Rogers Communications reported pre-tax net income of $2.2 billion last year. Natale was paid $11.7 million in salary and benefits..Canadians pay an average of $2,123 a year for telecom services according to the latest CRTC report..“We believe Canada needs dynamic competition, not a magic number of competitors,” said Paul McAleese, president of Shaw..“Do you believe a fourth carrier reduces prices?” asked Conservative MP Pierre Poilievre (Carleton, Ont.)..“I believe a dynamic, competitive environment reduces prices,” replied McAleese..“The question was, do you believe a fourth carrier reduces prices, yes or no?” asked Poilievre..“It’s all situational,” replied McAleese..“Will going from four to three equal ‘dynamic and competitive?’” asked Poilievre..“I think it absolutely can,” replied McAleese..CEO Brad Shaw testified the buyout will bring better telecom services..“The combination of these two companies will drive unparalleled investment as we go forward,” said Shaw..“Isn’t this a net negative?” asked Liberal MP Nathaniel Erskine-Smith (Beaches-East York, Ont.)..“We’re going to lose competition that has previously driven down prices.”.“Listen, we all like to win,” replied Shaw:.“The competition with a stronger competitor in Canada will drive value and choice and innovation.”.Dave Naylor is the News Editor of the Western Standard.,dnaylor@westernstandardonline.com,.Twitter.com/nobby7694
The proposed $26 billion buyout of Alberta-based Shaw Communications by Rogers won’t lessen competition, company execs told the Commons industry committee Monday..But Blacklock’s Reporter said some committee members didn’t buy the claim..“The Canadian market is intensely competitive and prices have been coming down dramatically over the last number of years,” testified Joe Natale, CEO of Rogers.“This is yet one more opportunity to combine for strength.”.Rogers on March 15 said it would buy up Shaw in a transaction subject to federal approval. Shaw dominates cable service in the four Western provinces. The buyout would leave only two large competitors, Bell and Telus..“Obviously a lot of Canadians are concerned,” said Liberal MP Ali Ehsassi (Willowdale, Ont.), parliamentary secretary for industry..“Would you agree with me that less competition should very much concern Canadians?”.“I think the most important factor around competition is having strong players that have the ability to invest in the future with new technologies and new ideas,” replied Natale..MP Ehsassi: “Your company is pretty profitable, correct?”CEO Natale: “I would agree that our company is very competitive and I would agree that – ”MP Ehsassi: “But it is profitable?”CEO Natale: “It is profitable.”MP Ehsassi: “So you would agree with me the reason why this acquisition is happening is not because you’re really hurting, you’re desperate, and you need to do these things to come up with savings, correct?”CEO Natale: “This acquisition is about looking to the future, not the present.”.Rogers Communications reported pre-tax net income of $2.2 billion last year. Natale was paid $11.7 million in salary and benefits..Canadians pay an average of $2,123 a year for telecom services according to the latest CRTC report..“We believe Canada needs dynamic competition, not a magic number of competitors,” said Paul McAleese, president of Shaw..“Do you believe a fourth carrier reduces prices?” asked Conservative MP Pierre Poilievre (Carleton, Ont.)..“I believe a dynamic, competitive environment reduces prices,” replied McAleese..“The question was, do you believe a fourth carrier reduces prices, yes or no?” asked Poilievre..“It’s all situational,” replied McAleese..“Will going from four to three equal ‘dynamic and competitive?’” asked Poilievre..“I think it absolutely can,” replied McAleese..CEO Brad Shaw testified the buyout will bring better telecom services..“The combination of these two companies will drive unparalleled investment as we go forward,” said Shaw..“Isn’t this a net negative?” asked Liberal MP Nathaniel Erskine-Smith (Beaches-East York, Ont.)..“We’re going to lose competition that has previously driven down prices.”.“Listen, we all like to win,” replied Shaw:.“The competition with a stronger competitor in Canada will drive value and choice and innovation.”.Dave Naylor is the News Editor of the Western Standard.,dnaylor@westernstandardonline.com,.Twitter.com/nobby7694
