Rogers outage relevant to Shaw takeover hearings, Competition Tribunal rules

While Rogers beat revenue estimates for its second quarter, it extended its deadline for its $20 billion deal to buy Shaw Communications until the end of 2022 as the regulatory approval process continues. The company is also anticipating it will spend about $150 million in customer credits following the mass outage earlier this month.

Canada’s Competition Tribunal has ruled that the Rogers Communications Inc. July 8 service outage is relevant to the upcoming hearings on the telecom giant’s $26-billion takeover of Shaw Communications Inc.

The ruling was made Friday after hearing submissions from Rogers and the Commissioner of Competition on the matter.

The outage affected millions of Canadians, and to make sure it doesn’t happen again, Rogers is committing $10 billion over three years on network upgrades and will spend $150 million on customer credits.

Read more:

Rogers says network upgrades after outage will cost $261M, but no timeline given

The ruling comes after Rogers released a commercial last week outlining what it is doing to earn back the trust of Canadians.

In a separate court document filed on Aug. 15 and made available to the public Monday, the tribunal says the proposed sale of Shaw-owned wireless carrier Freedom Mobile to Quebecor Inc.’s Videotron Ltd. is not an “effective remedy” as it “fails to eliminate the substantial lessening and prevention of competition” the transaction could cause.

Rogers intends to sell Freedom to Quebecor for $2.85 billion, in the hopes that the move will appease the concerns of federal regulators regarding its proposed takeover of Shaw.

© 2022 The Canadian Press

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