In early March, the House of Commons industry and technology committee presented its report on Rogers Communications’ proposed $26-billion takeover of Shaw Communications. The findings were not binding, but the conclusions were stark.
A year earlier, in March of 2021, Rogers announced its Shaw deal. The two companies own largely non-competing cable and internet businesses on opposite sides of the country, so little concern was raised about that. But Rogers is also one of the Big Three wireless companies, along with Bell and Telus, and it gobbling up Shaw’s Freedom Mobile, an upstart No. 4, was identified as an obvious negative for consumers, in an industry marked by high prices and limited competition.
Now is as good as time as any to remind everyone of the obvious: The cost of cellphone service in Canada is high. The Swedish consultancy that Canadian telcos are leaders in how much revenue they make per gigabyte of data, and that Canadians use relatively little data compared with people in three dozen other countries.Statistics Canada reported
that prices in February had fallen 10.8 per cent compared with a year earlier, even as the rest of the economy was being hit with inflation. This is the difference competition, via companies such as Freedom Mobile, can have on the pricing power of the Big Three .
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