Rogers, Shaw extend merger deadline to end of year

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Rogers expects customer credits for its recent outage to cost US$150 million in the current quarter. Find out more.

The $2.85-billion Freedom sale was announced in June to try to assuage concerns the combination of Rogers and Shaw would lessen wireless competition and raise prices for consumers, but the federal competition authority is continuing its attempt to block the merger.

Despite the roadblocks to completing the “transformational” merger with Shaw and a massive outage of the Rogers network on July 8 that has led to added costs as well as increased government and regulatory scrutiny on the telecom sector, Rogers posted second-quarter financial results Wednesday that beat analyst expectations and estimates.Article content

Consolidated revenue of $3.87 billion was slightly higher than the consensus estimate of $3.79 billion, and earnings before interest, taxes, depreciation and amortization came in at $1.59 billion for the three months ending June 30, also beating the consensus estimate of $1.54 billion.

With the bulk of the third quarter remaining, including back-to-school season, Staffieri said Rogers is comfortable maintaining its performance guidance for the full year. In response to a question from an analyst about whether competitors are trying to take advantage of the network outage by siphoning off Rogers customers, Staffieri said promotions do not appear to be different from prior years.

In the second quarter, which ended before the network outage, year-over-year wireless ARPU growth was 5.7 per cent, beating expectations of 3.6 per cent growth, Desjardins analyst Jerome Dubreuil said in a note to clients Wednesday morning.

 

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If this gets approved it effectively takes away all competition in communications. We already have the highest cell rates in the world. It would be irresponsible to approve the merger.

Just shut it down

Hope it happens never 👎

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Rogers, Shaw extend deadline for contested $26-billion merger until end of yearThe merger of Canada’s two largest cable companies is facing obstacles from the Competition Bureau, which argues it would cause higher prices and poorer service The Competition Bureau is attempting to block the merger of Canada’s two largest cable companies, arguing that it would result in higher prices and poorer service, particularly for wireless customers. alexposadzki alexposadzki Just when you thought you could get away from Rogers… we cancelled all our services with them due to ridiculous prices and horrid customer service. Been happy with Freedom for 8 years. Is there anyone that isn’t a sell out!?!?
Source: globeandmail - 🏆 5. / 92 Read more »