More than a dozen nearly-identical interventions filed with CRTC in favour of Rogers-Shaw broadcasting acquisition

A number of film groups and companies have submitted nearly identical letters to the CRTC in support of Rogers Communications Inc.’s plan to acquire Shaw Communication Inc. as the commission plans for a November hearing into the company’s deal to purchase Shaw’s broadcasting business interests. So far, interventions submitted following the CRTC’s notice of a November hearing are broadly in favour of Rogers being allowed to purchase all of the issued and outstanding shares of Shaw’s 16 terrestrial broadcasting distribution undertakings (BDUs) -- operated by Shaw Cablesystems Limited -- plus its 25 per cent interest in CPAC Inc.; the national direct-to-home (DTH) BDU Shaw Direct; the national satellite relay distribution undertaking (SRDU) Shaw Broadcast Services; and all the issued and outstanding shares of Shaw Pay-Per-View Ltd. Interventions from documentary group Score G Production Films, the Victoria Film Festival, Yorkton Film Festival, Karma Film Inc., Paperny Entertainment Inc., and Screen Siren Pictures -- some of which said they have received funding or support from Rogers or Shaw in the past -- are all in favour of the merger. The letters, which are written mostly in the same format, point to a $5.7 million pledge from Rogers for funding to be directed to the production of Canadian programming in addition to another $1 million they say would be contributed to film festivals across Western Canada “that support the participation and representation of underrepresented and equity-deserving communities in the broadcasting industry,” as well other positives in the form of expanded TV offerings, an extended range of services to more rural and remote areas, and supporting Canadian TV service providers that compete with foreign streaming services. Rogers did not respond to questions about the funding offers Monday. “No company is better positioned to deliver on these commitments than Rogers. The combination of Rogers and Shaw builds on the strong legacy of these two family-founded Canadian communications companies,” the letters state. “The combined entity will have the scale, assets and capabilities needed to deliver critical wireline and wireless broadband and network investments, as well as innovation and growth in new services, which will result in greater choice and enhanced offerings for Canadian consumers.” Most of the film groups state the benefits are proof the merger is “good for consumers, creators and broadcasters. More customers will be encouraged to continue to subscribe to cable services offered by the combined Rogers-Shaw company, which will benefit Canadian broadcasters and producers.” The letters make similarly worded assertions with slight variations related to their groups, stating things like “ensuring that Canadians living in Manitoba, Saskatchewan, Alberta and B.C. have competitive choices among TV providers that provide both affordability and accessibility as the digital economy takes hold is of critical importance…” and that they “believe that the merger of Shaw and Rogers will advance this objective in a meaningful way.” Some of the letters also claim lump-sum payments from Rogers on the proposed funding would benefit recipients, “especially given the economic impacts of the pandemic.” Rogers Arena and Vancouver Canucks owner Francesco Aquilini joins the film groups in supporting the acquisition because he believes “the combining of these two companies will provide a more viable company to compete with the other telecommunication giant” in British Columbia. He also said he has “plenty of experience” dealing with Rogers. “I find them good partners in every sense of the word. They can be trusted,” he said. Corporate support has so far come in from a variety of companies, including a letter signed by automotive service chain Mr. Lube’s chief information officer Mike Whitmell. Whitmell said he’s impressed by promises from Rogers to spend on network expansion, connectivity, and job preservation -- and he's not the only one. Some statements in the letter signed by Whitmell are nearly identical in multiple ways to one sent in by Daniel Arrascue, the director of operation services with consulting and engineering company Ausenco. The letters also contain points included in other submissions from Coast Hotels Limited, Control Solutions Ltd., ECS Electrical Cable Supply Ltd., Harbour Link Container Services Inc., Odgers Berndtson Canada, and several other groups. Representatives of Rogers did not return a request for clarification by publication Monday on whether or not the company was involved in the submission of identical interventions from a variety of players. The Central Okanagan Food Bank submitted an intervention of its own in favour of the deal as well. The food bank said “Rogers has demonstrated that it understands the importance of being a good corporate citizen that contributes to the community,” through supporting things like food banks, women’s shelters, and community grants. Meanwhile, the Kelowna Chamber of Commerce said in its intervention it supports the application as "job creation and economic development are critically important to us, and the new entity has promised that existing jobs will be preserved, and 1,200 net new jobs will be created in BC." It also brought up the importance of 5G in the region, however, the CRTC has said it will only be examining the broadcasting portion of the acquisition. Additional interventions were filed by individuals both for and against the merger for a variety of reasons, including concerns over lessened competition and a belief that the transaction will only be good for the companies and their investors, not consumers. Rogers and Shaw do face more opposition to other parts of the deal, being Rogers’ plan to pick up Shaw’s telecommunications business interests as well -- an aspect of the merger which the CRTC will not make a determination on. A coalition of four advocacy groups -- OpenMedia, ACORN Canada, Leadnow, and North99 -- delivered a petition with a collective 62,000 signatures to the Competition Bureau in May, asking the regulator to block the sale, arguing “that this buyout will make connectivity in Canada even more expensive by cutting down the already-limited number of options available to people in the telecom market.” The Competition Bureau and Innovation, Science, and Economic Development Canada will determine whether or not Rogers can take on Shaw’s wireline and wireless telecommunications services and business and automation services. Due to the pandemic, the CRTC will hold its own Nov. 22 hearing in Gatineau, Que., while also providing remote participation options including a satellite appearance location in Shaw’s home base of Calgary, Alta., and audio and video feeds on the commission’s website. Parties have until Sept. 13 to file interventions on the application and state whether or not they wish to attend the CRTC's hearing. UPDATE: After publication of this story, Rogers pointed to documentation of the funding pledges for Canadian programming and film festivals in the company's April application to the CRTC. - Reporting by Hannah Daley at hdaley@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

More than a dozen nearly-identical interventions filed with CRTC in favour of Rogers-Shaw broadcasting acquisition

Broadcast | August 30, 2021

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More than a dozen nearly-identical interventions filed with CRTC in favour of Rogers-Shaw broadcasting acquisition

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