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Cogeco doesn t aspire to be fourth major wireless carrier, but it has a plan that may be our last chance at real competition
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Cogeco doesn t aspire to be fourth major wireless carrier, but it has a plan that may be our last chance at real competition
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By Timothy Denton
Do you remember the Maltese Falcon: the movie whose plot turned on possession of a ceramic bird? The Maltese falcon is a MacGuffin, the thing around which the plot moves. Telecommunications policy is filled with MacGuffins. Coming to a political theater near you will be several MacGuffins used to justify the Rogers takeover of Shaw. Think 5G. Think rural broadband. Watch the dogs chase the ball.
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The news that Rogers intends to buy out Shaw Communications presents the government with the bankruptcy of many decades of competition policy in telecommunications. Successive federal governments have tried to foster competition in cellular communications by giving preferences to new entrants with advantageous conditions on radio spectrum. By awarding spectrum for free or at lower prices than th
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When Anthony Lacavera saw that Rogers Communications Inc. was buying western rival Shaw Communications for more than $20 billion earlier this week, the telecom industry veteran was a little disappointed but not surprised.
Lacavera, after all, founded Wind Mobile in 2008 as an upstart wireless provider, and battled against regulators and Canada’s big three telcos for years before Shaw finally absorbed Wind and rebranded it as Freedom Mobile in 2016.
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While the emotional connection to Wind has diminished, watching the budget-friendly carrier go the way of the big three still brought a twinge.
Anthony Lacavera, the founder of Wind Mobile before the Shaw acquisition turned it into Freedom Mobile, is “disappointed” but not surprised about the Rogers-Shaw merger.
Earlier this week, Rogers announced a deal to acquire Shaw, which includes Freedom Mobile. The deal is valued at a whopping $26 billion. Although not set to close until 2022, Canadians have already voiced their displeasure at the prospect of Rogers swallowing yet another player in the mobile space, further reducing the industry’s already scant competition.
Speaking to
The Telegram, Lacavera said, “The oligopolies are so strong in Canada. I was disappointed. It’s just so unfortunate that the country I love is dominated by these oligopolies and does not have a competitive market.”
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