Michael Davies, one of the experts hired by the Competition Bureau to analyze the two telcos’ potential merger, testified that divesting Freedom Mobile will not mitigate this result. The founder and chairman of Massachusetts-based consulting firm Endeavour Partners took the stand on Thursday to present his findings before the three-member tribunal.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
Davies, who has a business and technology expertise in mobile and digital domains, said Shaw’s ability to compete strongly and evolve its network came to “more or less a dead halt” after its merger with Rogers was announced in March 2021. Shaw was ready to deploy 5G but due to the announcement, Shaw could not participate in the spectrum auction and stopped migration to 5G, he added.Article content
He said the merger will greatly reduce Freedom’s competitiveness as a wireless business due to weaker product offerings, target customer base and distribution, loss of economies of scale, lack of access to Wi-Fi hotspots and reduced ability to differentiate on the basis of reliability. A combined Freedom-Vidéotron would also lose distribution advantages Shaw-Freedom had, said Davies. These include losing access to Shaw’s mobile business physical distribution channels, digital channel and brand awareness, he said.
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