QUESTION PERIOD — Canadian Radio-television and Telecommunications Commission
Competitiveness of Canadian Telecommunications
June 8, 2021
Honourable senators, my question is for the Government Representative in the Senate. Senator Gold, on March 15, Rogers Communications announced its bid to take over Calgary-based Shaw Communications for $26 billion, creating Canada’s second-largest cellular and cable operator.
The possibility of a further reduction in telecom options from four to three immediately drew national attention. Canadians are keenly aware of the oligopoly that controls our telecommunications industry and the potentially unfavourable situation that we now face.
According to David Olive, a respected business journalist with the Toronto Star who has reviewed the research, Canadian broadband fees are 64% higher than the G7 average, and wireless fees are 157% higher.
I understand that the proposed merger will be reviewed by the Competition Bureau, the CRTC and the Department of Innovation, Science and Economic Development. We have heard from the Competition Bureau in the past that the best way to reduce consumer costs is to expand Canada’s telecom market to more entrants.
Senator Gold, I would like to hear from you what the government’s view of this is. Does the government think that this merger will benefit Canadians, or does it believe that the Canadian market — and the Canadians who rely on it — will suffer from increased concentration and decreased competition?
I will drill down just a little bit. In light of the upcoming review of this merger, does our current regulatory framework give adequate attention to competition factors? That is, does the framework adequately assess whether this deal lessens and prevents competition, or does the review framework allow efficiency arguments to trump competition considerations?
Thank you for your question. It’s the position of the government that greater affordability, competition and innovation in the Canadian telecommunications sector are important for Canadians, all of whom are concerned about their cellphone bills and their connectivity. As you point out, senator, the proposed purchase by Rogers of Shaw’s cable, internet and wireless businesses will be independently reviewed by the instances that you mentioned. The government will not presuppose the outcomes of these processes. However, the government is committed to ensuring that consumers are protected and that the broader public interest is served as this proposed merger is evaluated.
Senator Gold, when it comes to our internet and cellphone bills, Canadians are paying high prices for mixed service. Many Canadians, including some senators in our chamber, still don’t even have access to basic reliable broadband and wireless service.
The CEO of Rogers Communications spoke at the House committee on March 29. Both he and Bradley Shaw of Shaw Communications spoke about the importance of a dynamic and competitive market for consumers.
With that in mind, senator, has the government considered opening our market to dynamic and competitive foreign players — foreign operators and firms — as a means to kick-start our lagging and overpriced domestic system?
The government knows it’s not fair to ask Canadians to pay some of the highest prices in the world in order to stay connected. In keeping with its commitment to bring down prices by 25%, last July 2020 the government launched the affordability tracker, a web page entitled “Telecom quarterly report: Price collection data,” so that people can see for themselves where prices are going.
In terms of 5G infrastructure, the government wants to give regional providers the best possible chance to compete and succeed as Canada prepares for 5G.
