Rogers ‘confident’ it can compete with bigger Videotron if Shaw merger goes forward
Global News
The CEO of Rogers Communications believes the company is ready to handle increased competition from Videotron if its merger with Shaw Communications goes through.
The head of Rogers Communications Inc. says the telecom company is ready to face the threat of increased competition born out of its proposed merger with Shaw Communications.
CEO Tony Staffieri made the comments during the company’s fourth-quarter earnings call Thursday morning.
He said the company is ready to compete with Quebecor’s Videotron in the national wireless market as the company grows with the pending acquisition of Shaw’s Freedom Mobile — the divestiture of which is now a key aspect of the deal between Rogers and Shaw clearing antitrust concerns.
But an analyst on the call asked Staffieri why shareholders should be excited about the deal, given that it would also end up benefiting a competitor.
Staffieri conceded that selling off Freedom to Videotron, which would give the Quebec-based brand reach into the Western Canadian market, would “enhance their competitive ability.”
But he added that there would be “a number of dynamics” in the telecom sector with a fourth player at the table and said any gains by Videotron in the wireless market do not necessarily mean losses for Rogers in the space.
“We have thrived in a competitive landscape in the past,” he said.
“We’re confident we have what we need to be able to compete in a four-player market.”