Rogers’ takeover of Shaw clears CRTC hurdle. Here’s what happens next

Experts say the true test of the $26-billion deal will be whether federal regulators will also green-light Rogers' takeover of Shaw's wireless, internet and home phone services

Rogers Communications has cleared the first of many hurdles in its quest to acquire rival Shaw Communications, after the CRTC on Thursday approved the merger of the companies’ broadcast services.

But experts say the true test of the $26-billion deal will be whether federal regulators will also green-light Rogers’ takeover of Shaw’s wireless, internet and home phone services — where major concerns remain about competition and consumer prices.

“I don’t see (the CRTC decision) as foreshadowing a smooth approval for the next phase,” said Tom Ross, a professor in the Sauder School of Business at the University of British Columbia who studies competition policy and regulation.

“There will be a laser focus on competition and consumer protections, and there is certainly a chance that the decision could go the other way.”

Those decisions from the Competition Bureau and Innovation, Science and Economic Development Canada (ISED) are not expected until later this year.

Rogers and Shaw have expressed confidence that the rest of the deal will be approved. They say joining forces is necessary to ensure greater connectivity to rural and Indigenous communities, and to compete in the increasingly globalized market for content.

But questions remain on how the deal will impact prices on cable and wireless plans, which remain among the highest in the world.

The CRTC approval, which comes with conditions, will allow Rogers to acquire Shaw’s 16 cable services based in Western Canada, a national satellite television service and other broadcast and television services.