Thank you, Chair and members of the committee.
The Public Interest Advocacy Centre has advocated for consumers for over 40 years in communications law and policy. This committee cannot stop Rogers from acquiring Shaw. Mergers are controlled by the Competition Act. The CRTC approves broadcasting distribution deals and ISED approves wireless spectrum transfers. What this committee can do is to help stop the next deal and to help stall this one until some regulation to support new competition has a chance to take hold.
If this committee is disturbed by hearings on this deal, you can recommend, and Parliament can enact, a key change to help stop the next merger: Repeal section 96 of the Competition Act, the so-called “efficiencies defence”.
The efficiencies defence is an embarrassment to Canada. No other economic peer country has this defence for corporations, effectively allowing them to merge even when competition is reduced. The efficiencies defence is a stand-alone provision. It can be excised from the Competition Act with no other effects, other than simply requiring merging companies to show their merger will not prevent or lessen competition. Repeal section 96.
As for this deal, this committee can recommend that the Minister of ISED and the competition commissioner hold up reviews and approvals until two key regulatory decisions are made by the CRTC that will set the table for new competitors that may help minimize the anti-competitive effects of this deal.
The first decision is on the mobile virtual network operators, or MVNOs. If the CRTC allows such MVNO competitors, there will be some ability for customers to switch providers to competitors other than the big three. However, if that decision puts restrictions on MVNOs that frustrate them, then there will be no wireless competitors to replace Shaw and Freedom in much of Canada.
The second decision is on wholesale wireline Internet delivered over fibre. The CRTC has set a rate for this new delivery method that permits wireline competitors to take on dominant Internet companies like Rogers. Without it, competition to Rogers will falter, especially out west.
Thank you very much, and I also welcome your questions.