Opinion: Telecom mergers promote greater profits over better content. The CRTC has support private sector profit, while encouraging competition. The trouble is the latter part is achieved more in the saying than doing.
The saga of Shaw Communications’ merger with Rogers Communications continues. Close to two years in the making, it’s a story replete with paradox and outsized numbers, starting with the $20 billion price tag. This is a spectacular amount of money that reflects on others in the sector, particularly the arts.
The big departure came later with Amazon, Facebook and Twitter, all three being monopoly-based enterprises, ostensibly illegal both in Canada and the U.S. Their billionaire owners seem to operate in a vacuum, as outliers even in the telecom world. They remind you of Eeyore lamenting his solitary lot being “the only one of me.”
Rogers’ outage last summer focused attention on something else — its public obligations. Situations can and did arise where its service intersected with public safety, especially given cellphone service is part of the package nowadays. It was a sobering experience, warranting serious rethinking. Today, the issues have to do with ownership and competition. Small telecom operations continue to disappear, as Oxio did just last month, acquired by Cogeco. Then there’s the hot-topic of “wholesale access,” which big companies are required to provide to smaller ones. Indeed, the CRTC has just announced it was launching a review of network rates.
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