Good afternoon, Chair and members of the committee. My name is Tony Staffieri, and I am joined by Dean Prevost, president of integration at Rogers.
First, let me say thank you for the opportunity to speak with you. We respect the role of this committee, and we are here to answer your questions.
Today’s hearing comes after a lengthy judicial process, one that saw the Federal Court of Appeal reaffirm the decision of the Competition Tribunal.
The court's ruling builds on the decision of the tribunal, which unanimously concluded that the transactions among Rogers, Shaw and Quebecor are pro-competitive.
To quote the decision, “There will continue to be four strong competitors in...Alberta and British Columbia.” The decision goes further, concluding that Videotron will be a more disruptive wireless carrier because it can quickly build a 5G network across Freedom’s footprint and bundle wireless and wireline services at lower prices than Shaw.
The decision also made it clear that Rogers will inject “a new and substantial source of competition” in Alberta and British Columbia.
In short, these transactions have gone through a rigorous review and will increase competition. To quote the Federal Court, “This was far from a close case.” This committee can feel satisfied that no stone was left unturned.
A lot has changed since you first studied this merger and tabled your recommendations. We heard your feedback, and that of our minister. Today we are here to talk about an even better deal. Actually, it is now two deals. The first will see Quebecor, owner of Videotron, acquire Freedom. The second will see Rogers acquire Shaw’s wireline business in markets in which we don’t compete.
After other remedies were reviewed and clear criteria set out, we determined that Videotron, with its proven track record, significant scale, and credible, rapid path to 5G, was the most viable option to increase competition.
This transaction will increase competition in two meaningful ways. First, Videotron will become a disruptive fourth national carrier, reaching nearly 90% of the population.
Second, Rogers will become a stronger, more formidable wireline competitor in western Canada. Rogers' cable footprint reaches parts of Ontario and eastern Canada. Shaw’s cable footprint spans western Canada and parts of northern Ontario. There is no overlap.
As one national cable company, we will vigorously compete with Telus in the west. Yes, the deal will increase wireless competition, but it will also increase wireline competition. That should explain why Telus has been doing everything it can to oppose this transaction.
Let me now turn to the commitments we made in western Canada.
First, we will invest $6.5 billion to improve connectivity over the next five years. This includes $1 billion in new funding to connect rural and indigenous communities. We are working with first nations partners, including indigenous-owned providers, and all levels of government to finalize priority projects. We will invest $2.5 billion to expand our 5G network. We will also invest $3 billion in network services, including expanding our cable network.
Second, we will maintain a strong presence in western Canada. This includes the creation of up to 3,000 net new jobs to support network investments, with Calgary as our western headquarters.
Third, we will make connectivity more accessible. We will expand Connected for Success, our low-cost, high-speed Internet program, to low-income Canadians across the west. We will also expand it to eligible wireless customers across the country. Together, this program will be available to more than 2.5 million Canadians. This merger will bring together two entrepreneurial Canadian companies that are deeply committed to Canada and Canadians.
As I conclude my remarks, let me leave you with a few thoughts. First, we have taken your feedback.
Second, these transactions have gone through a robust and comprehensive review.
Third, this transaction will increase competition.
Fourth, we will invest substantially to connect more Canadians.
These transactions will deliver more value, more connectivity and more innovation for Canada.
Thank you.