Since the Rogers-Shaw merger, cellphone plans in Western Canada have seen a price increase, according to Jeanne Pratt, the Competition Bureau’s Senior Deputy Commissioner of Mergers and Monopolistic Practices. Pratt expressed concerns about rising costs following the acquisition of Shaw by Rogers last April, highlighting Shaw’s competitive pricing in British Columbia and Alberta before the merger.
During a recent testimony at the House of Commons’ industry committee, Pratt’s observations were part of a broader discussion on wireless and broadband services’ accessibility and affordability in Canada. The Canadian Radio-television and Telecommunications Commission (CRTC) representatives also shared insights during this session.
Rogers responded to these concerns by stating that their current offerings in Western Canada and nationally have not increased in price since the merger. They emphasized their commitment to a five-year price freeze for the 500,000 Shaw Mobile customers they acquired.
MPs had previously noted an average $5 increase for certain Rogers and Bell Canada customers back in January. The Competition Bureau opposed the $26-billion Rogers-Shaw deal, citing concerns about reduced competition leading to higher costs and fewer consumer choices. However, the Federal Court of Appeal upheld the merger based on the Competition Tribunal’s findings that competition would not be significantly impacted.
Looking ahead, the industry committee plans to hear from executives of Rogers and Telus. NDP MP Brian Masse has proposed a motion to compel the ‘Big 3’ CEOs to attend if they do not accept the invitation.
In light of these developments, Scott Hutton from CRTC highlighted a 16% decline in telecom service prices over the past year according to Consumer Price Index data. He emphasized ongoing monitoring of cellphone service prices to prevent a trend of increasing costs.
As we navigate these changes in the telecommunications landscape post-merger, it is crucial to ensure continued competition and affordability for consumers across Canada. Stay tuned for more updates on this evolving situation as we strive for accessible and cost-effective telecommunications services nationwide.
