Close X
Monday, November 11, 2024
ADVT 
National

Some bundled wireless plans not as cheap as before Rogers-Shaw merger: watchdog

Darpan News Desk The Canadian Press, 26 Feb, 2024 06:21 PM
  • Some bundled wireless plans not as cheap as before Rogers-Shaw merger: watchdog

Certain cellphone plans in Western Canada are not as cheap as they were prior to the Rogers-Shaw merger, Canada's competition watchdog says.

Jeanne Pratt, the Competition Bureau's senior deputy commissioner of mergers and monopolistic practices, told MPs on Monday that before Shaw was purchased by Rogers Communications last April, the company was "a particularly growing and disruptive competitive force" in B.C. and Alberta.

"They offered very aggressive pricing for bundled wireless plans," she said.

"So far, we haven't seen any information that would suggest that Rogers is offering comparable pricing to Shaw Mobile post-transaction, so that is of a concern."

Pratt was testifying at the House of Commons' industry committee along with representatives from the CRTC, as MPs study the accessibility and affordability of wireless and broadband services in Canada.

Rogers said it wasn't immediately clear which wireless plans Pratt was referring to, but that of the cellphone plans it offers today, both in Western Canada and nationally, none of them are more expensive than prior to the merger with Shaw.

The company said Pratt may have been referring to bundled packages with residential offered to the 500,000 Shaw Mobile customers it absorbed. Rogers said it has committed to price freezes for five years for those customers.

MPs on the committee sounded the alarm in January, when Rogers confirmed prices were going up by an average of $5 for wireless customers not on contract and some Bell Canada customers were also told their wireless bills were set to increase.

The Competition Bureau had opposed Rogers' $26-billion takeover of Shaw, arguing that approving the merger would reduce competition and result in higher cellphone bills, poorer service, and fewer options for consumers.

But the Federal Court of Appeal rejected the Competition Bureau’s bid to quash the deal last year, after the watchdog had hoped the higher court would overturn a previous ruling from the Competition Tribunal in favour of the pact.

Instead, the court sided with the tribunal’s view that “there was no substantial lessening of competition” at risk by approving the deal.

Pratt was asked by Conservative MP Rick Perkins during the committee meeting whether "that reduced competition that you warned about" explains recent cellphone price hikes.

"What I can say is we were definitely concerned about the acquisition and the replacement of Shaw Mobile, who had been a vigorous and effective competitor, who seemed to be driving prices and bundled products down in Western Canada," she said.

"Frankly, the evidence showed that Rogers was the biggest loser in that fight."

Scott Hutton, chief of consumer, research and communications for the CRTC, told the committee that Consumer Price Index data shows telecommunication service prices in Canada have declined 16 per cent in the last year.

But he said that is largely in line with international trends of telecom prices going down. Hutton said many Canadians don't feel their bills are getting lighter and the regulator is "certainly of the opinion that Canadians pay too much for their services."

"Clearly, we need to continue our work, and we will be closely monitoring cellphone service prices to ensure that the recent price increase announced in January does not become a trend," he said.

The committee has invited the chief executives of Rogers, BCE Inc. and Telus Corp. to testify at an upcoming meeting, however a notice of meeting this Wednesday lists other representatives of the Big 3 carriers who are scheduled to appear as witnesses.

NDP MP Brian Masse tabled a motion Monday to summon the three CEOs to appear if that invitation is not accepted.

Rogers, Bell and Telus did not respond to questions about whether their CEOs would attend.

MORE National ARTICLES

Supreme Court of Canada refuses to hear Hells Angels appeal of B.C. forfeiture ruling

Supreme Court of Canada refuses to hear Hells Angels appeal of B.C. forfeiture ruling
The Supreme Court of Canada's refusal to hear a Hells Angels challenge of B.C.'s forfeiture of three clubhouses will "put criminals on notice," the province's pubic safety minister says. The high court ended a years-long court battle on Thursday as it refused to hear an appeal of the seizure of the clubhouses in East Vancouver, Nanaimo, and Kelowna.

Supreme Court of Canada refuses to hear Hells Angels appeal of B.C. forfeiture ruling

Canada committing $10M in humanitarian aid for Israel, Gaza as Canadian flights leave

Canada committing $10M in humanitarian aid for Israel, Gaza as Canadian flights leave
Prime Minister Justin Trudeau says Canada is giving an initial $10 million in humanitarian assistance for urgent needs in Israel and the Gaza Strip. He also says the first airlift of 130 Canadians that left Tel Aviv earlier today has landed in Athens.

Canada committing $10M in humanitarian aid for Israel, Gaza as Canadian flights leave

'New wave of building' in Vancouver comes as mayor makes plans to focus on more homes

'New wave of building' in Vancouver comes as mayor makes plans to focus on more homes
The mayor of Vancouver set out a foundation on Wednesday to address the housing crisis in the city, while reducing barriers to building and streamlining regulations. Ken Sim released a seven-point motion going before council that would direct city staff to prioritize new housing construction, allow for increased density around transit hubs, speed up a plan for 26 villages in the city and increase enforcement of short-term rental regulations. 

'New wave of building' in Vancouver comes as mayor makes plans to focus on more homes

Two Canadians killed by Hamas in Israel remembered as proud and loving

Two Canadians killed by Hamas in Israel remembered as proud and loving
Two Canadians killed by Hamas gunmen while attending a music festival in southern Israel over the weekend are being remembered as generous, kind and those who brought love to the world. Friends and family have confirmed 22-year-old Ben Mizrachi from Vancouver and former Montreal resident Alexandre Look, who recently celebrated his 33rd birthday, were two of the hundreds killed when gunman swarmed the music event on Saturday.

Two Canadians killed by Hamas in Israel remembered as proud and loving

Canada to airlift citizens, permanent residents out of Israel in 'coming days': Joly

Canada to airlift citizens, permanent residents out of Israel in 'coming days': Joly
Foreign Affairs Minister Mélanie Joly confirmed Tuesday that Ottawa is planning to airlift Canadians out of Tel Aviv in "the coming days," as conflict between Israel and Hamas escalates. Joly said the government aims to conduct the evacuation using aircraft from the Canadian Armed Forces, and it is working on additional options for people who are unable to reach the airport in Tel Aviv.

Canada to airlift citizens, permanent residents out of Israel in 'coming days': Joly

Nursing seats now open at KPU

Nursing seats now open at KPU
115 new nursing seats are now open to students at Kwantlen Polytechnic University, increasing the program size by nearly 50 per cent. A new nursing lab and technology upgrades are now complete at the Langley campus.

Nursing seats now open at KPU