Evidence of meeting #26 for Industry, Science and Technology in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was prices.
A video is available from Parliament.
12:35 p.m.
Executive Chair and Chief Executive Officer, Shaw Communications Inc.
I would say that the family, after 50 years in business, was very serious about looking at all options [Technical difficulty—Editor] between Rogers and Shaw is the best choice going forward.
12:35 p.m.
Liberal
The Chair Liberal Sherry Romanado
Thank you very much.
Our next round of questions goes to MP Masse.
You have the floor for two and a half minutes.
12:35 p.m.
NDP
Brian Masse NDP Windsor West, ON
Thank you, Madam Chair.
I have deck upon deck, a couple of trees' worth, from Shaw over the years, advocating for carve-outs and for spectrum set-asides and other things to be successful, to be the fourth player to provide that competition, so this seems to be quite a drawback.
Would you not agree, Mr. Shaw, that [Technical difficulty—Editor] Canadians to make sure that the fourth competitor would actually evolve? This seems to be a little bit of, I guess, a slap in the face for decades of strategy here to actually provide more competition. I don't know how we can take one of the four out—any of the four—and then assume that there's going to be more competition.
What do you have to say about all that investment and time that have gone into the policies you have advocated for over a decade?
12:35 p.m.
Executive Chair and Chief Executive Officer, Shaw Communications Inc.
I will ask Paul to comment, and then I can comment after. Thank you.
12:35 p.m.
President, Shaw Communications Inc.
Thank you, Brad.
Mr. Masse, the government's spectrum policy has very sensibly evolved over time. I would briefly remind the committee that the history of this evolution is noteworthy here. The birth of this industry, back in the early mid-1980s, was able to take place because the government at the time provided free spectrum to the regional telcos, as well as to what at the time was Rogers Cantel, to move forward and basically birth a new industry, an industry that we all are incredibly grateful for. I think everyone in this committee has a phone on their desk or in their pocket today that they rely on every day.
That spectrum policy enabled that initial birth of this industry, and that policy—
12:35 p.m.
NDP
Brian Masse NDP Windsor West, ON
I guess that's the thing. Now it's all messed up with the timing of this for the next 5G spectrum. This is just.... The timing couldn't be worse.
12:35 p.m.
President, Shaw Communications Inc.
If I could.... I won't speak to this particular auction because of the restrictions around it, but over time policy shifts based on what the objectives of the government of the day are and what the objectives of that particular spectrum band are.
It is not, in our view, a conflict at all. The timing is what it is. We believe that over the course of the last number of years, the auctions have come forward in a way that has supported what we have today, and the country is in a far better place for it.
12:35 p.m.
Liberal
The Chair Liberal Sherry Romanado
Thank you.
Our next round of questions goes to MP Poilievre.
You have the floor for five minutes.
12:35 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
Thank you very much.
Mr. McAleese, a moment ago you were saying that you don't think Freedom played an important role in reducing prices, but Shaw actually said the contrary, as my colleague pointed out earlier: “Freedom's entry has shifted the market dynamics, causing the Big 3 to drastically reduce overage fees and offer significantly more data for much lower prices.”
Now you say the opposite. In fact, you almost verbatim said the opposite of what your company said not so long ago. Why the contradiction?
12:35 p.m.
President, Shaw Communications Inc.
I don't think it's a contradiction, Mr. Poilievre. I said that we were not solely responsible for the change in pricing [Technical difficulty—Editor]. There were consumer pain points that, over the last number of years, Freedom has pointed out and that, frankly, the incumbents have reacted to in a way that essentially has changed the facts of where we are. The market has absolutely changed.
While there are areas where we have been able to apply pressure and make changes, there are many areas—in fact, probably more areas—where the incumbents have brought forward new pricing strategies and new opportunities for Canadians to access this.
12:35 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
Yes, but not long ago you said that the reason for that was Freedom Mobile existing as a fourth competitor in the marketplace, so you are contradicting yourself in the sense that you said that a fourth competitor has forced the Big 3 to lower prices. Now you're downplaying the importance of a fourth competitor in the delivery of low prices to customers.
12:35 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
At the end of the day, would you say that having the fourth competitor lowers prices?
12:35 p.m.
President, Shaw Communications Inc.
If I could respectfully disagree.... Those comments were made in the context of support for facilities-based carrier builds. I think those comments can coexist.
12:40 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
Right. That wasn't my question.
Do you believe a fourth carrier reduces prices?
12:40 p.m.
President, Shaw Communications Inc.
I believe a dynamic, competitive environment reduces prices.
12:40 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
The question, for the third time, was this: Do you believe that a fourth [Technical difficulty—Editor] reduces prices, yes or no?
12:40 p.m.
President, Shaw Communications Inc.
This is all situational, Mr. Poilievre.
12:40 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
Do you believe Freedom's entry [Technical difficulty—Editor] dynamics and caused the big three to drastically reduce overage fees and offer significantly more data for lower prices? Do you believe that to be true?
12:40 p.m.
President, Shaw Communications Inc.
I believe we had a degree of influence over that. I also believe that they have taken initiative on their own to recognize there are opportunities to go to market.
12:40 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
Right, that wasn't my question. My question is whether you believe that statement to be true. Do you?