Factbox: Canada clears Rogers-Shaw deal but with conditions

Quebecor

31/03/2023 15:25

March 31 (Reuters) - Canada on Friday granted the final
approval for Rogers Communications Inc's  RCIb.TO  C$20 billion
($15 billion) buyout of Shaw Communications Inc  SJRb.TO ,
clearing the deal that will create the country's No. 2 telecoms
company.
    Minister of Innovation, Science and Industry
Francois-Philippe Champagne agreed to the transfer of wireless
licenses held by Shaw's Freedom Mobile unit to Quebecor Inc's
 QBRb.TO  Videotron under some conditions.
    
    CONDITIONS ACCEPTED BY ROGERS
    
    *  Will have to create 3,000 new jobs in Western Canada and
maintain them for a minimum of 10 years after the closing date
    * Invest at least C$2.5 billion to enhance its 5G network in
Western Canada, and C$3 billion in additional network service
expansion projects
    * Expand access to low-cost broadband internet plans and
launch a new low-cost mobile offering for low-income Canadians
    * Invest C$1 billion to expand broadband internet access, at
speeds of at least 50/10 megabits per second, and 5G mobile
service in areas where it is not currently available
    * Establish a western headquarters in Calgary and maintain
it for a minimum of 10 years after the closing date
    * To report to Innovation, Science and Economic Department
and to the public every year on specific progress it has made
towards commitments in the agreement
    * Will have to offer wireless plans to Shaw Mobile customers
at Shaw's current prices for 5 years after deal close
    * To pay C$100 million for every year in which any "material
element" of any commitment is not met
    
    CONDITIONS ACCEPTED BY VIDEOTRON
    
    * Will need to offer plans that are comparable to those
currently available in Quebec, and offer options at least 20%
cheaper than that of major players
    * Cannot transfer Freedom Mobile licenses for 10 years
    * Will have to expand its 5G wireless network in Freedom
Mobile's pre-existing operating territory within 2 years
    * Will increase data allotments of existing Freedom Mobile
customers by 10% as a near-term bonus, while investing to bring
down prices overall
    * Will expand mobile service into the Canadian province of
Manitoba via the use of a signed Mobile Virtual Network Operator
(MVNO) agreement and offer plans comparable to what it offers in
Quebec
    * To pay C$25 million for every year in which any "material
element" of any commitment is not met

 (Compiled by Eva Mathews in Bengaluru; Edited by Shounak
Dasgupta)
 ((Eva.Mathews@thomsonreuters.com))