Rogers stands for nearly half a million customers to make money as part of the deal to sell the mobile franchise

Although Rogers plans to sell the franchise, the Competition Bureau argued that separating Shaw’s cable carrier from the network will reduce the franchise’s competition capability.Spencer Colby / Globe and Mail

Rogers Communications Inc. RCI-BT has 450,000 customers to collect new cellphones as part of its agreement to sell mobile wireless service to Quebecor Inc. QBR-BT stands for $2.85-billion, a deal that was a crucial step in the campaign for Rogers to win regulatory approval of its takeover of Shaw Communications Inc. SJR-BT

Late on Friday, Rogers announced plans to sell Shaw’s mobile franchise division – Canada’s fourth largest wireless tablet, with 1.7 million customers – to Quebecor. Montreal-based sales company Transformed, which owns 22 per cent of the wireless market in Quebec’s national archive, with customers in Ontario, Alberta and BC

The deal would also alleviate controlling concerns, which staff said Canada, the fourth national wireless competitor, would be released if Rogers were allowed to acquire Shaw’s franchise as part of the federation.

Rogers sells Liberty Mobile deal in Quebecor for $2.85-billion

Globally Rogers disappears, takes freedom of the line to Shaw

Although Rogers prevented sales from adding to its franchise buyer base, the company still gained some wireless customers. At weekend briefings Rogers chief executive Tony Staffieri told analysts that his company plans to retain 450,000 Shaw mobile subscribers in Alberta and BC, and Quebecor and other potential franchise buyers in the division.

The takeover of Shaw by Rogers still requires approval from the Competition Bureau and the Ministry of Innovation, Science and Economics. The Competition Bureau is trying to stop the merger, which connects Canada’s two biggest cable companies, arguing the deal will come at higher prices, poorer service choices and fewer consumers, especially when it comes to mobile phone services.

Owner Staffieri said in an email that Rogers “has worked hard to find a new owner of the franchise that we believe fits the requirements set by government and directors to promote competition and excellence in wireless.”

He added that the Liberty deal would make Industry Minister Francesco-Philippe Champagne a strong objective of maintaining a fourth wireless carrier. “Quebecor, as a well-established Canadian operator with a strong balance of balance and hard competition in wireless tuition, is an ideal franchise buyer that has proven itself to be as good as the Shaw’s cleats franchise as the franchise owner and continues to drive the market in a very competitive market in Canada,” Mr. Staffieri said .

The directors will continue to provide Rogers with feedback about the agreement with Quebecor, which under the deal proposed a franchise buyer contract, infrastructure, licenses and sellers to acquire. Rogers Quebecor would provide roaming services and backhaul merchandise.

“Quebecor is the most likely customer to be satisfied by the Competition Bureau and signed an undisclosed commitment to shutting down the Rogers Shaw transaction,” an analyst at CIBC said in a report on Saturday.

Pierre Karl Péladeau, president and CEO of Quebecor, called the agreement “a turning point for the Canadian wireless market”. For Quebecor, which owns Montreal-based cable company Videotron Ltd. including, the deal provides an opportunity to expand nationally.

“Videotron subsidiary Quebec is a strong fourth player with a solid track franchise in Ontario and Western Canada that can deliver concrete benefits to all Canadians,” Mr. Péladeau said on Friday.

Shaw Mobile is among the companies being sold with cable and internet services in western Canada – Quebecor does not serve the country – while Liberty is the only marketplace. Shaw launched a package in 2020, in an effort to keep its customers cable and internet, offering them abruptly discounted wireless services. Telus Corp there was something in Shaw’s market to share.

Mr. Staffieri told analysts that Quebecor had not ordered in Shaw Mobile, which he was interested in customers might turn their cellphones to other telecom service providers if they faced a loss due to a change in the ownership of the telecom division. In their report, CIBC analysts offer similar estimates. “Show clients are wireless and are receiving a single bill, making it difficult to stop the entire sale,” they wrote.

Shaw Mobile generates about $100-million in annual revenue. If regulators allow Rogers to maintain its business, Mr. Staffieri told analysts, the company would be better positioned to pay around $19-billion worth of acquisition-related debt and maintain investment-grade credit estimates.

Rogers estimates the highest estimate of Shaw in the wireless business, including Shaw Mobile customers who plans to keep it at $3.85-billion, according to a source close to Rogers, who the Globe and Mail did not name because they were not allowed to discuss it. publicly assessed.

In partnership with Quebecor, Rogers made a call to Freedom Mobile from rural internet provider Xplornet Communications Inc. backed by private equity-backed infrastructure firm Stonepeak Partners. It also received payments from organized partnerships with Fengate Asset Management, LiUNA Central and Eastern Canada Pension Funds, and the Acquilini family of Vancouver-native investors.

Over the past two weeks, Quebecor executives have been aggressively urging Rogers to come to terms with plans to order the sale of Xplornet, which is based in New Brunswick, and adopt a settlement with the Federal Reserve Competitions Tribunal, according to two familiar sources. with the passage of time. Globe sources did not name because they were not allowed to speak on behalf of the Quebecor.

Quebecor and Rogers have been partners in telecom networks for a long time, but the relationship has been rocky at times. In October, Quebecor sued Rogers for $850-million, alleging the Toronto-based company breached a communications network contract. The report says the CIBC deal includes no free-will provisions that resolve the dispute.

Antonio Lacavera, chairman of Globalive Capital, who also tried to buy the franchise, said Rogers had offered $900-million less than the $3.75-billion in his company, because Quebecor would be a nicer competitor.

“Rogers has put this business to a succession of friendly and friendly people who don’t compete with them and want to sell their franchise at any time,” Mr. Lacavera said in an email Saturday. Globalive Capital founded Liberty Mobile in 2008, formerly called Wind Mobile, and sold it to Shaw eight years later.

Although Rogers plans to sell the franchise, the Competition Bureau argued that separating the courier from Shaw’s network franchise could reduce the competition’s ability to cross-sell or offer packages. Shaw called them “totally alienated”, arguing the franchise’s victory doesn’t depend on leveraging Shaw’s cable network.

Rogers and Shaw have both said they hope to arrive at a settlement and avoid a hearing before the Competition Tribunal, but are preparing to face the application, Competition Commissioner Matthew Boswell.

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