On Rogers-Shaw, focus shifts to network sharing agreements

As the Competition Bureau takes Rogers Communications Inc. and Shaw Communications Inc. to the Competition Tribunal to block the merger of the companies, conversation on what will be required to get the deal done has shifted to whether or not a network sharing agreement is a central component of any possible remedy that would mollify the bureau's objections . According to their respective executives' comments at the TD Securities Telecom & Media Conference Wednesday, Rogers thinks network sharing won't be essential to get the deal done, while Telus Corp. confirmed it is ready to sign such a deal (and BCE Inc. would want to have a word with Telus about it.) Rogers CEO Tony Staffieri told assembled investors that "we heard the government in terms of the desire to have a fourth wireless player in the market, and we're committed to work on that objective." "So we're selling all the assets of Freedom wireless," Staffieri said. The Rogers boss added that he remained hopeful that the company could hammer out a sale of Freedom to such a buyer that would satisfy the Competition Bureau's remedy requirements and head off a lengthy tribunal proceeding. "We have a good roster of qualified bidders that we think are ultimately going to hit the mark, in terms of what's required from a remedy standpoint," Staffieri said. He said that he didn't believe that the bureau would require a network sharing agreement with any putative Freedom buyer. "It's fair to conclude as you look at , there's no requirement for a network sharing solution as part of that," Staffieri said. Telus chief financial officer Doug French, for his part, declined to say who his company's preferred Freedom buyer would be, but shed some light on the company's thinking around a reported network sharing agreement with Freedom-hopeful Globalive. The agreement, French said, would happen in the context of the CRTC's new mobile virtual network operator (MVNO) framework. Last week financial analysts suggested that the agreement could be part of a tactic to muscle Quebecor Inc. out of negotiations for the wireless asset. "There's already an MVNO framework in Canada, and, yes, there's still pricing and other items to resolve through that process to enable the MVNO environment. But it's on a path," French said. "So if there's going to be a remediation partner if this deal gets approved, if there was a network share that needs to be signed, we would consider it as a 'Switzerland-type' approach to whomever.” “The MVNO is going to happen anyway. just make sure that we have, potentially, a more commercial outcome instead of a government regulated outcome," French told investors. Asked by TD Securities analyst Vince Valentini if such a network sharing arrangement would "raise red flags" at Bell were it a part of the remedy solution in the Rogers-Shaw transaction, Bell chief financial officer Glen LeBlanc said "I don't know if i would say 'raise red flags' per se.” “It's probably something that has been a competitive advantage for us over the last number of years with our network sharing agreement with Telus." "It's allowed us to acquire spectrum individually and contribute it to the agreement. If a new party enters as a fourth wireless player in this country and they don't have a network sharing agreement, well then they're going to have to negotiate access rates and it can certainly challenge the business," LeBlanc said, and hinted that Bell was less than pleased with the Globalive agreement announced last week. "Suffice it to say that we have an incredible network sharing agreement with Telus and it has served both our shareholders extremely well, and any addition a third-party to that agreement would be a conversation that would be required by both parties," he said. — Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

On Rogers-Shaw, focus shifts to network sharing agreements

Broadcast | May 25, 2022

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On Rogers-Shaw, focus shifts to network sharing agreements

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