At CRTC, Cogeco cites Rogers opposition to Bell-Astral merger

On the third day of CRTC hearings into the proposed takeover of Shaw Communications Inc. by Rogers Communications Inc., Cogeco Inc.’s Paul Beaudry quoted from a Rogers intervention during BCE Inc.’s application to take over Astral Media in 2012. “The issue is market power,” Rogers said nine years ago. “We agree with that,” Beaudry said at Wednesday's hearing. He pointed out that Rogers' share of the BDU market would more than double if the merger were permitted to go through. In addition the new firm could offer discounts to Rogers Media properties that other smaller competitors could not match. He called upon the commission to rejig the dispute resolution mechanism, imposing time limits on settlements. Beaudry colleague Frédéric Perron, president of the company, said that retroactive rates could become prohibitive for some disputants and small companies abandon the process and reluctantly agree to pay the higher premiums. “We’re supporters of the dispute resolution mechanism,” Beaudry said. Executive director of the Public Interest Advocacy Centre (PIAC) John Lawford, appearing alongside Trish McAuliffe president of the National Pensioners Federation, stated the takeover is not in the public interest. That is part of a consistent policy for the group. “It does not offer enough to the broadcast system,” Lawford told the CRTC panel. PIAC is suggesting the tangible benefits regime on Rogers be increased to $23 million from Rogers’ proposed $5.7 million. Ten per cent of that money should go to the Broadcast Participation Fund and the Broadcast Accessibility Fund, he offered. PIAC, which draws from the funds, is only receiving $0.75 on the dollar for its appearance at the hearings, Lawford told commissioners. The advocacy group has come close to shutting its doors in the past, he added. He said he hoped the government will include some sort of funding mechanism in a reintroduced revision to the Broadcasting Act. Lawford noted that Rogers only proposed new spending on news, not on community channels. Earlier in the day, groups representing underserved communities praised Rogers TV and Shaw Spotlight for giving their stories wider coverage. Much of the discussion revolved around technical issues. McAuliffe pointed out that seniors rely much more heavily on basic television services than internet. Rogers’ plan to migrate to an IPTV platform will cost seniors more, she argued, citing statistics that show 90 per cent of older Canadians subscribe to TV services versus 30 per cent of young people. Cogeco offers some of its programming through satellite relay distribution units (SRDU) powered by Shaw. Beaudry expressed concern that Rogers could impose harsh terms and conditions on the Quebec-based carrier after the merger. Cogeco’s only alternative would be Bell. “They might use their dominance to diminish services or raise rates,” he speculated. On Tuesday the Canadian Communication Services Alliance said if service cuts were proposed, they should be subject to a public process. Beaudry said Cogeco would support such a measure. In its Tuesday testimony Telus Corp. said an agreement to carry Disney+ signals on its BDU was abrogated when the Rogers-Shaw deal was announced. Beaudry could not cite similar examples with Cogeco but worried that it could fall victim to a similar situation. Cogeco also worried about self-dealing between a merged Rogers and Corus Entertainment Inc., a Shaw subsidiary. Even though it is not part of the takeover deal, Beaudry worried that interlocking directorships between Shaw executives could hinder free competition. --Reporting by Paul Park at ppark@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

At CRTC, Cogeco cites Rogers opposition to Bell-Astral merger

Broadcast | November 25, 2021

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At CRTC, Cogeco cites Rogers opposition to Bell-Astral merger

Broadcast | November 25, 2021

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