Are you wondering how the merger of Rogers and Shaw will impact your Fraser Valley business?
Same.
The $26 billion deal is set to create a new telecommunications giant with over 15 million subscribers across the country, and it's likely to have a significant impact on the industry as a whole.
One of the key conditions of the merger is job creation in Canada. The merger is required to create at least 3,000 net new jobs, with a focus on technology and innovation. To add to this, “Rogers must also spend $5.5 billion to expand 5G coverage and additional network services, as well as a further $1 billion to connect rural, remote and Indigenous communities” (CBC), and these “5G services are estimated to contribute $40 billion annually and 250,000 jobs to Canada by 2026” (The Conversation). This could lead to increased economic activity and growth, which could benefit small businesses in the long run.
This is only 1 of 21 conditions of the merger, two of which are more specifically intended by Industry Minister François-Philippe Champagne to lower the cost of telecom services for Canadians. As of now, “Canadian consumers are. . . accustomed to paying some of the highest wireless prices in the world” ( Financial Post). Rogers CEO Tony Staffieri seems particularly confident that the conditions will be met and succeed: "What we want to make sure we get right is all the things for our customers, and in particular, affordability," he stated in an interview. . . "One of the key pluses of this is that competition is going up, especially in the west, and prices are going to come down” (CBC).
In an email sent by Shaw to their customers, they say you can expect your business to “have access to our coast to coast wireline network and the largest 5G network in the country, and be connected to “5G applications that will help your business be more productive, sustainable and safe”, along with other promises of benefits for home customers and communities.
Despite these potential benefits for your business, some critics have expressed concerns about the impact on competition and regulation.
The new company will have a dominant position in both the wireless and internet markets, which are causing many to worry the merger will soften competition in the telecom industry, resulting in higher prices and lower service quality for customers. Richard Powers, an associate business professor at the University of Toronto’s Rotman School of Management says “The lower cost services, you may see some savings but for the high-speed, higher-end and more comprehensive plan packages, I don’t think we’re going to see a difference at all” (Financial Post). If Rogers does not meet the conditions to lower cost, though, there are severe financial penalties for the company.
Overall, regardless of the outcome, this deal will likely have a significant impact on the Canadian economy and society as a whole. It remains to be seen how the merger will play out, but it is sure to be a topic of much discussion and debate in the months and years to come!