BCE urges CRTC to reject Rogers-Shaw deal

BCE urged the CRTC to reject Rogers' $26-billion proposed takeover of Shaw on Thursday, while independent operators have called for more safeguards.

GATINEAU, Que. - BCE Inc. urged the CRTC to reject Rogers Communications Inc.'s $26-billion proposed takeover of Shaw Communications Inc. on Thursday, while independent operators have called for more safeguards.

Speaking at the second-last day of hearings in Gatineau, Que. this week - which are focused the broadcasting implications of the deal - BCE representatives echoed concerns raised by broadcasters, producers and distributors about the market dominance Rogers would have if the deal were to be approved.

“The market power that Rogers seeks to acquire will have a long-lasting negative impact that will echo throughout this interdependent ecosystem,'' said Robert Malcolmson, chief legal and regulatory officer at BCE.

“If successful, Rogers will achieve a degree of control over the broadcasting sector at levels never before contemplated with no clear countervailing benefits for the Canadian broadcasting system.''

Malcolmson pointed to the CRTC's initial rejection of BCE's acquisition of Astral Media in 2012 because of the market size it would create as a clear precedent for if not rejecting, at least requiring commitments from Rogers to sell off assets to reduce the resulting market share.

Sarah Farrugia, vice president of content and business intelligence at Bell, said that if Rogers were allowed to secure 47 per cent of English-language broadcast subscribers it would be able to secure exclusive rights to international programs that it could use to direct subscribers to its online streaming services at the detriment of the broadcast system.