House committee says Rogers-Shaw deal should not proceed

A parliamentary committee says a proposed multibillion-dollar takeover of one of Canada's largest telecoms should not proceed.

A parliamentary committee says a proposed multibillion-dollar takeover of one of Canada's largest telecoms should not proceed.

But the House of Commons industry and technology committee says if Rogers Communications Inc.'s $26-billion bid for Shaw Communications Inc. does go ahead, the government should make its conditions attached to the approval "fully enforceable."

In a report on the proposed merger that was tabled Friday, the committee recommends the affordability and accessibility interests of Canadians should take precedence over all other considerations during the regulatory review process.

The non-binding report says the government should place an emphasis on the importance of Freedom Mobile, Shaw's wireless carrier, as a fourth wireless provider that competes with the Big Three of Rogers, Bell and Telus.

The deal is under review by three different federal regulators including the Competition Bureau and the CRTC as well as spectrum regulator Innovation, Science and Economic Development Canada (ISED).

The last of the committee's four recommendations notes that the committee "believes the merger should not proceed," but says attaching enforceable conditions, including the resources needed for that enforcement, is a must if the deal goes ahead.