Study of the proposed acquisition of Shaw Communications by Rogers Communications

Canadian Radio-television and Telecommunications Commission (CRTC) presented information to Parliament on the study of the proposed acquisition of Shaw Communications by Rogers Communications.

Presentation date: April 7, 2021

Presented to: Standing Committee on Industry, Science and Technology (INDU) (external link)

Details: Information about the subject matter examined by the committee and who appeared at the meeting can be found in the Notice of Meeting (external link).

Information presented at the meeting

CRTC opening remarks

Background information

Standing Committee on Industry, Science and Technology (INDU)

Overview of INDU committee (external link)

Committee members and biographies

1. Chair Sherry Romanado

Sherry RomanadoPolitical Affiliation: Liberal

Constituency / Circonscription: Longueuil - Charles-LeMoyne

Province/Territory: Quebec

Sherry Romanado was elected Member of Parliament for Longueuil – Charles-LeMoyne in October 2015.

Born and raised in Greenfield Park, Quebec, Sherry has a certificate in Public Relations from McGill University and a Master’s degree in Business Administration from Concordia University. A faculty lecturer for the Public Relations program at McGill University’s School of Continuing Studies, she is a former member of the Board of Directors of The Chartered Institute for Transport and Logistics and a past chair of the Education Committee for North America.

Prior to her election, Sherry served as Assistant Director of Continuing Education at Champlain College and sat on the Board of the Champlain College Saint-Lambert Foundation.

In August 2018, Sherry was appointed Parliamentary Secretary to the Minister of Seniors by the Prime Minister of Canada, the Right Honourable Justin Trudeau. Since January 2017, she had served as Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence.

Sherry currently sits on the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities. She is also co-Chair of the Parliamentary Rail Caucus, counsellor to the Canadian NATO Parliamentary Association (NATO PA), and member of the Canada-United States Inter-Parliamentary Group and the Canadian Section of ParlAmericas. She previously sat on the Standing Committee on Veterans Affairs, the Standing Committee on National Defence and the Special Committee on Electoral Reform.

The proud mother of two sons currently serving in the Canadian Armed Forces, Sherry was an active volunteer with the CGG 1979 Centennial Cadet Corps of Greenfield Park, serving as its vice-president and communications director, and is a long-time member of both the Royal Canadian Legion Branch 94 and the Greenfield Park Lions Club.

2. Vice-Chair Pierre Poilievre

Pierre PoilievrePolitical Affiliation: Conservative

Constituency: Carleton

Province/Territory: Ontario

At age 39, Pierre Poilievre is undefeated in five elections and has served for 12 years as the Member of Parliament for Nepean-Carleton (now Carleton). As Official Opposition Critic for the Treasury Board, he is currently a member of the Public Accounts Committee, which investigates Auditor General’s reports on government spending and the management of taxpayers’ money.

Prior to the last election, Poilievre served as Minister of Employment and Social Development—the largest department in the federal government—where he oversaw the successful rollout of the increased Universal Child Care Benefit. The department he led is also responsible for Old Age Security, housing, job training, Employment Insurance and poverty reduction.

In 2013, Poilievre became Minister of Democratic Reform responsible for drafting the Fair Elections Act and stickhandling it through Parliament. It cracked-down on the undue influence of money in politics, made it easier for people to vote and required they show identification before doing so.

That law built on his work as Parliamentary Secretary to the Treasury Board President, wherein he helped then-Minister John Baird pass the Federal Accountability Act through Parliament. Later, he served as the Prime Minister’s Parliamentary Secretary (2008-2011), during which he co-authored the Conservative 2011 election platform, which helped the party win a majority government and led to spending reductions, tax cuts, and a balanced budget.

Community

Poilievre has become known for championing causes brought to him by constituents.

Most recently, he worked with the Liberal government to help save the life a local small businessman. Colin Perera was in the late-stages of kidney failure when his nephew in Sri Lanka offered to come to Canada to provide an organ transplant. Immigration Canada denied his visitor visa. After Poilievre learned of the problem, he worked with the Immigration Minister, John McCallum, to secure a rare Ministerial permit so the nephew could enter Canada for the operation, which is expected in spring of 2016.

Similarly, a Canadian Armed Forces Major from Osgoode informed Poilievre that the government prevented him from spending time with his new baby, when it denied his parental leave under Employment Insurance. Major Jim Duquette’s benefits had expired while he was on military deployment in the Middle East. According to the rules, prisoners could defer their benefits while in jail, but soldiers could not defer benefits during a mission. Poilievre convinced the government to introduce the Fairness for Military Families Act, which allows soldiers to defer their parental leave until after they return from military missions, giving them precious time off with their small children.

In 2005, an Osgoode farming family brought the idea of a Children’s Fitness Tax Credit to Poilievre, who shared it with then-Opposition Leader, Stephen Harper. He campaigned on and implemented the tax credit in 2006. It allowed families to claim up to $1000 per child in sports registration costs. (The Trudeau government has since cancelled it)

Poilievre lives in Greely, Ontario, a village in south Ottawa.

3. Vice-Chair – Vice-président Sébastien Lemire

Sébastien LemirePolitical Affiliation: Bloc Québécois

Constituency: Abitibi-Témiscamingue

Province/Territory: Quebec

For Sébastien Lemire, being a Member of Parliament means first and foremost listening to the people in order to bring their aspirations to the forefront with them and to adapt their environment to today's realities.

It means having a unifying and collaborative leadership on the issues that affect us and participating in the development of a sustainable, lively, human environment that reflects our image.

4. Liberal Members
4..1 Member Ali Ehsassi

Ali EhsassiPolitical Affiliation: Liberal

Constituency: Willowdale

Province/Territory: Ontario

Previously, Ali worked as a lawyer in the private sector and as a civil servant at the provincial and federal levels. His extensive professional experience gives him the knowledge to get things done in government.

Born in Geneva and raised in New York City and Tehran, Ali settled in North York with his family in his early teens. He is a graduate of the University of Toronto (B.A.), attended the London School of Economics (M.SC.) and received degrees from Osgoode Hall Law School (LL.B) and Georgetown University in Washington, DC (LL.M).

In Willowdale, Ali has been a strong advocate for increased federal support for local infrastructure needs. These investments would not only reduce many of out local issues, but also create conditions for the future economic growth. Additionally, Ali has advocated for gun control, the 401 ramp revitalization, Canada Child Benefit funding in Willowdale, online hate speech legislation, indigenous rights and awareness, provincial cuts to legal aid air space noise control and traffic, and housing affordability.

Ali is committed to ensuring the concerns of Willowdale residents are heard and advocated for.

Ali sits on the following committees:

  • Standing Committee on Citizenship and Immigration
  • Standing Joint Committee for the Scrutiny of Regulations
  • Justice Committee
  • Co-Chair for the 416 Caucus

As your Member of Parliament, Ali is committed to ensuring the concerns of Willowdalians are heard and that they achieve real and positive change.

4..2 Member Nathaniel Erskine-Smith

Nathaniel Erskine-SmithPolitical Affiliation: Liberal

Constituency: Beaches-East York

Province/Territory: Ontario

Nathaniel (Nate) Erskine-Smith is the Member of Parliament for Beaches-East York. He is the Vice-Chair of the Access to Information, Privacy, & Ethics Committee.

He also sits on the Executive Committee of the Canadian Group of the Inter-Parliamentary Union (IPU) as past president. In his role as President, he has represented Canada at parliamentary conferences around the world.

His speeches in the House of Commons and interventions at committee can be found here.

Nate regularly attends events around Beaches-East York, volunteers his time in support of local charitable activities, and visits local schools to talk to young Canadians about the importance of participating in the democratic process.

Nate became the M.P. on October 19, 2015, after a successful grassroots open nomination in December 2014. In June 2016, CBC News’ Aaron Wherry wrote about the importance of independence in the House of Commons, and Nate’s relatively independent streak. In July 2016, Althia Raj from the Huffington Post wrote a longer profile piece in which Nate explained his voting record, and general philosophy on free votes. And in September 2016, the Star’s Susan Delacourt wrote about his work in parliament, and the idealism he brings to the job.

Nate has strong roots in Beaches-East York, where he was raised and has lived most of his life. Nate attended Bowmore and Malvern, grew up playing baseball at Ted Reeve and Stan Wadlow, and his parents Sara Erskine and Lawrence Smith are well respected local teachers. Nate lives in the riding with his wife Amy, a chef and nutrition professor at George Brown College, and the director of the supper club program at Gilda’s Club Greater Toronto. They have two sons, Mackinlay, born in 2016, and Crawford, born in 2019.

Before politics, Nate was a lawyer at a commercial litigation firm downtown Toronto. He supplemented his practice with volunteer legal work for a range of clients and causes, which included fighting public interest matters in court, and research for the Canadian Civil Liberties Association.

He obtained his B.A. (Politics) and J.D. (Law) from Queen’s University, where he pitched for the varsity baseball team. After working at a large Bay Street law firm and being called to the bar, Nate obtained his B.C.L. (Master of Laws), with distinction, from the University of Oxford where he studied political philosophy and constitutional law, and pitched for both the University and City baseball teams.

4..3 Member Helena Jaczek

Helena JaczekPolitical Affiliation: Liberal

Constituency: Markham-Stouffville

Province/Territory: Ontario

Dr. Helena Jaczek was the Member of Provincial Parliament for the riding of Oak Ridges-Markham from 2007 to 2018. During that time, Helena served as Ontario’s Minister of Health and Long-Term Care, Chair of Cabinet, Ontario’s Minister of Community and Social Services, Vice-Chair of the Health, Education and Social Policy Cabinet Committee and, from 2011 to 2014, Chair of Liberal Caucus. She also served on the Standing Committee on General Government, the Standing Committee on Social Policy, the Select Committee on Mental Health and Addictions, and the Standing Committee on Finance and Economic Affairs.

She was recently on the boards of Reena, an agency providing services to adults with developmental disabilities, and Yee Hong Centre for Geriatric Care, where she chaired the Quality Committee.

Helena came to Canada from England at the age 12. She received her medical degree and Master of Health Sciences from the University of Toronto and a Master of Business Administration from the Schulich School of Business at York University. After many years in general practice on staff at Women’s College Hospital in Toronto, Helena became the Medical Officer of Health and Commissioner of Health Services for the Regional Municipality of York. During her 18 years in that position, she was responsible for public health, land ambulance and long-term care in a region of more than one million people.

Helena was awarded the Helen Keller Award by the Canadian Foundation for Physically Disabled Persons and the Canadian Helen Keller Centre for her contributions to hearing and visually impaired Ontarians. She also received the Distinguished Service award from the Association of Local Health Agencies, the Ontario Physiological Association Public Service Award, the Ontario Medical Association Life Membership Award and the Outstanding Alumni Mentor Award from the University of Toronto’s Public Health Sciences Alumni Association.

4..4 Member Majid Jowhari

Majid JowhariPolitical Affiliation: Liberal

Constituency: Richmond Hill

Province/Territory: Ontario

Majid Jowhari is the Member of Parliament for Richmond Hill. He attended Ryerson University, earning a Bachelor of Technology in Industrial Engineering, and York University‘s Schulich School of Business, where he earned an MBA. Jowhari was a licensed Professional Engineer from 1995-1999 and founded his own boutique consulting firm to provide advice to chief financial officers. He has translated this experience into his Parliamentary responsibilities, helping small businesses and entrepreneurs discover Federal funding and grant opportunities through his office and as a presenter to community and business forums.

In the House of Commons, Member of Parliament (MP) Majid Jowhari is the notable founder of the Parliamentary Mental Health Caucus and holds roles on the Industry and Government Operations Parliamentary Committees. MP Jowhari is a member of the Canada-China Legislative Association, Canada-Japan Inter-Parliamentary Group and Canadian NATO Parliamentary Association.

MP Majid Jowhari drafted, introduced and read his first Private Members Bill, C-375 An Act to amend the Criminal Code, in the House of Commons on October 19th, 2017. The bill would mandate that pre-sentence reports, which currently include information such as character, attitude, behavior, and willingness to change, also include relevant information relating to the offender’s mental health.

In 2018, the Canadian Alliance on Mental Illness and Mental Health (CAMIMH) named Majid Jowhari as a Parliamentary Mental Health Champion. Each year, the organization selects individuals and organizations as Champions to recognize them for their contributions to mental health in Canada. According to the CAMIHM, “Majid Jowhari is a staunch advocate for mental health in Canada. He drafted and introduced legislation to change the criminal code, which would take mental health information into account during pre-sentencing, and founded and chaired the Liberal Mental Health Caucus, and later, the Parliamentary Mental Health Caucus, reaching across party lines to bring mental health to the forefront of discussion on the Hill.” Majid also partnered with the Hill Times to publish a three-part series of opinion editorials on the culture and stigma surrounding mental health on Parliament Hill. Jowhari candidly shared his personal experience, advocated for better protection for political staffers and shared advice on best practices in the workplace.

4..5 Member Emmanuella Lambropoulos

Emmanuella Lambropoulos

Political Affiliation: Liberal

Constituency: Saint-Laurent

Province/Territory: Quebec

Born and raised in Saint-Laurent, Emmanuella Lambropoulos has been proudly representing the people of the riding she calls home in the House of Commons since she was elected in the 2017 by-election. Upon graduating from McGill University in 2013, Emmanuella began her teaching career teaching History, Geography and Ethics and Religious Culture at various high schools on the island, including at Saint-Laurent’s very own LaurenHill Academy, where she also worked as a resource aid with students who had learning disabilities and autism.

She completed her Masters of Arts in Educational Leadership in 2020. Throughout her years as an educator, Emmanuella became passionate about social change and entered politics to help make Canada a fairer place for all. An advocate for equality, inclusion and diversity, Emmanuella would be honoured to continue representing her home riding of Saint-Laurent as of October 2019.

5. Conservative Members
5.1 Member Tony Baldinelli

Tony BaldinelliPolitical Affiliation: Conservative

Constituency: Niagara Falls

Province/Territory: Ontario

Returning to his hometown of Niagara Falls in 2001, Tony currently serves as the Senior Manager of Communications and Stakeholder Relations for The Niagara Parks Commission. Before joining Niagara Parks, Tony served as a Public Relations, Public Affairs and Community Relations specialist, with Hill and Knowlton Strategies, in Toronto.

Tony’s passion for politics and service to Conservative administrations dates back to 1988, when he first worked on Parliament Hill as a Legislative Assistant to the Honorable Rob Nicholson. In 1995, Tony then moved to Queen’s Park, serving as Legislative Assistant for the Honourable Marilyn Mushinski, Ontario Minister of Citizenship, Culture and Recreation.

A graduate of McMaster University with a degree in Political Science, Tony also received a Public Relations Certificate, with Honours, from Humber College. He is married to his wife Carol and they have one son, Daniel.

5.2 Member Earl Dreeshen

Earl DreeshenPolitical Affiliation: Conservative

Constituency: Red Deer—Mountain View

Province/Territory: Alberta

Earl was born in Red Deer, Alberta and is well respected in business circles in the city and in area towns and villages. Earl and his wife Judy are fourth generation farmers who own and operate a family farm near Pine Lake, Alberta. They have two grown children Megan and Devin and one grandson Julian.

Earl holds a Bachelor of Education degree from the University of Alberta and taught Mathematics at the Innisfail High School for 34 years and retired in June 2008. Over those years, Earl devoted his time and expertise to working with area youth, coaching football, fastball, track and field, volleyball and minor hockey.

Earl is a strong Central Alberta community leader and volunteer. He was elected to the Elnora Hospital Board, serving for many years as chair. He also served as chair of the Eltrohills Health Advisory Committee, working toward improved health care standards in the Three Hills, Trochu, and Elnora communities.

Earl was elected Member of Parliament for the Red Deer Constituency in 2008 and re-elected in 2011. Until dissolution of Parliament, he served as a Member of both the Standing Committee on Agriculture and Aboriginal Affairs, He was also the chair of the Post-Secondary Education Caucus and has served as a Canadian delegate for the ParlAmericas.

5..3 Member Bernard Généreux

Bernard GénéreuxPolitical Affiliation: Conservative

Constituency: Montmagny—L'Islet—Kamouraska—Rivière-du-Loup

Province/Territory: Quebec

Bernard Généreux and his wife Tracy have two children, Tristan and Kaïla, and are also grandparents to several wonderful grandchildren. While enjoying his family life, in 1993 his entrepreneurial spirit led him, with his associate, to create the company BASE 132.

A man close to the people and driven by the duty to serve, he was elected as mayor of the town of La Pocatière in 2005. Bernard Généreux started his career in federal politics soon after, and has since become part of the large conservative family for 12 years.

First elected from 2009 to 2011, he remained active in the Conservative Association and was re-elected in the 2015 elections as the MP for Montmagny—L’Islet—Kamouraska—Rivière-du-Loup. He was also a member of the board and executive committee of the Port of Quebec from 2011 to 2014. Recognizing his personal qualities and his leadership, his colleagues nominated him president of the Conservative Caucus of Quebec during his most recent term. He was also named Official Languages Critic.

Holding his name proudly, Mr. Généreux is known for being positive, open to others and involved in his area. He has been involved in several positions of honour relating to causes close to his heart, such as men’s health, end-of-life care, organ donation, and the fight against cancer.

6. NDP Member
6.1 Member Brian Masse

Brian MassePolitical Affiliation: NDP

Constituency: Windsor West

Province/Territory: Ontario

As Windsor West’s seven-term MP—re-elected once again in 2019 — Brian Masse has worked tirelessly to represent this community in Ottawa.

Over the years, Brian has managed key critic assignments that reflect his expertise and our city’s pivotal role in Canada’s economy. That included serving as critic for Small Business, for Tourism, for the Federal Economic Development Agency for Southern Ontario, and for the Great Lakes and the Canada–US Border. He has also served 16 years as vice-chair of the Canada–US Inter-Parliamentary Group, co-chaired the All-Party Border Caucus, and chaired the NDP Auto Caucus.

Brian has been a strong voice for the priorities of Windsor West. He has helped lead the fight for a new international border crossing and route in the Windsor–Detroit region—vital for the next generation of good jobs in our region. He has worked hard to build public support and investment for our auto sector. His private member’s bill on “right to repair” resulted in an agreement that protects the automotive aftermarket’s rights to access technology and equipment while strengthening consumer choice. Masse had plastic microbeads banned from cosmetics leading to cleaner water and protecting our personal health. He continues to fight to save Ojibway Shores, for digital rights for all Canadians, to get single-wager sports betting that will stop the funding of organized crime and for community benefits at the international border crossings bringing public funds back to our community for long-term betterment.

Questions and answers

  1. Do the Competition Bureau and the CRTC work together in the acquisition application process?
    • No, the CRTC and the Competition Bureau do not work jointly on their respective approval processes. The CRTC and the Competition Bureau are both independent law enforcement agencies whose mandates and approval processes are different and separate.
    • The CRTC is responsible for the supervision and regulation of Canada’s broadcasting and telecommunications sectors. The CRTC aims to facilitate access to the best possible communications services and content by and for all Canadians. The Competition Bureau ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.
    • Each one is responsible for the administration and enforcement of different laws.
    • As previously explained, no prior Commission approval is required under the Telecommunications Act for the telecommunications portion of the transaction. As a Canadian owned and controlled company, Rogers is eligible to acquire another Canadian company.
    • The CRTC’s pre-approval process for the transaction, during which the CRTC will hold a public consultation, will be solely within the jurisdiction of the Broadcasting Act.
    • Any concerns regarding telecommunications issues and the competitive marketplace for telecommunications services will not be referred to the CRTC but rather will fall under the jurisdiction of the Competition Bureau.
  2. What is the nature of the MOU between CRTC and the Competition Bureau? What expectations are set forth in the MOU?
    • The agreement mainly provides that, to the extent practicable and consistent with their respective confidentiality obligations, the Commission and the Competition Bureau will notify the other party of any review or process undertaken under the Competition Act, the Telecommunications Act or the Broadcasting Act, which is of significant public importance, when a similar review or process may be undertaken by the other party as part of its mandate, and will share information relating to the timelines and procedures for such reviews and processes.
    • We will share information regarding the timelines and procedures related to these reviews and processes.
  3. Would it be possible for the CRTC to intervene in a Competition Bureau proceeding?
    • The reverse is more likely to occur since section 125 of the Competition Act explicitly states that:

      “125 (1) The Commissioner, at the request of any federal board, commission or other tribunal or on his own initiative, may, and on direction from the Minister shall, make representations to and call evidence before the board, commission or other tribunal in respect of competition, whenever such representations are, or evidence is, relevant to a matter before the board, commission or other tribunal, and to the factors that the board, commission or other tribunal is entitled to take into consideration in determining the matter.”

    • On the other hand, the Canadian Radio-television and Telecommunications Commission Act, the Broadcasting Act and the Telecommunications Act do not provide the Commission with such powers.
    • When the Competition Bureau intervenes in regulatory proceedings of the Commission, its submissions are, of course, on competition issues.
  4. Why is the CRTC not reviewing the telecom portion of this transaction?
    • Under the Telecommunications Act, no prior approval from the Commission is required for the telecommunications portion of the transaction. In telecommunications matters, a concern for the Commission centres around eligibility and ensuring that the transaction will not result in an ineligible entity operating telecommunications services in Canada.
    • However, as Rogers is a Canadian-owned and controlled corporation, it is eligible to acquire another Canadian carrier.
  5. When does the CRTC review telecommunications transactions?
    • The CRTC ensures that telecommunications services in Canada are owned and operated by eligible entities.
    • The CRTC would review a transaction that would raise considerations with respect to the eligibility of the purchaser to operate telecommunications services in Canada.
  6. Will the CRTC look at competition issues as part of its review of this transaction?
    • To ensure a diversity of voices in the broadcasting system, the CRTC is generally not prepared to allow one person to control all television service providers in any given market.
    • The Commission’s review of a transaction can include an assessment of the size of the affected markets and of the market share of other television service providers.
    • The transfer of wireless assets and its impact on the competitiveness of the market is being examined by other bodies, such as the Competition Bureau under the Competition Act and Innovation, Science and Economic Development Canada under the Radiocommunication Act.
  7. Will there be a public process?
    • Considering the size and scope of the transaction, the CRTC will conduct a public consultation (either a paper process or an appearing hearing).
  8. Can the CRTC require Rogers to pay tangible benefits should it approve the transaction?
    • The Commission will examine the question of tangible benefits in accordance with its Tangible Benefits Policy (CRTC 2014-459).
    • According to the policy, it is not the Commission’s practice to require tangible benefits for ownership transactions involving cable or satellite television providers.
Wireless services review
  1. Why didn’t the CRTC mandate or regulate rates for mobile virtual network operator access in 2015 even though it determined that it is an essential service?
    • The CRTC was concerned that doing so would undermine investment in wireless networks, particularly by new wireless entrants and in non-urban areas.
    • Investments by wireless carriers are important to ensure that Canadians have access to high-quality mobile wireless networks and services, at reasonable prices, in all regions of Canada.
    • It was made clear during the 2015 proceeding that wireless carriers, including regional competitors, had made and were planning to make significant investments in spectrum and their wireless networks.
    • The CRTC implemented other measures, including mandated wholesale roaming, to support the development of wireless competition and to remove barriers to the development of a sustainable retail MVNO market.
  2. Why is it taking so long for the Commission to publish its decision for the mobile wireless review?
    • In February 2019, the CRTC initiated a broad review of mobile wireless services to ensure that the needs of Canadians are met. The last major mobile wireless review was conducted in 2015.
    • Not surprisingly, the proceeding generated a great deal of interest and a substantive public record from many members of the industry and thousands of consumers.
    • In December 2019, the Commission conducted public opinion research by way of telephone and online surveys to better understand the needs, habits and behaviours of Canadian wireless consumers, followed by a two week long public hearing from February 18 – 28, 2020.
    • Shortly thereafter, the impacts of the COVID-19 pandemic became apparent and the Commission suspended its various regulatory proceedings, in order to provide participants greater flexibility and focus on their response to the pandemic. The record of the proceeding was reopened to allow the parties to address impact of the COVID-19 pandemic on the issues in the proceeding, such that the record closed in July 2020. The Commission expects to issue its decision in the near future.
  3. What were the major conclusions and objectives of the 2015 wireless framework decision?
    • In 2015, the CRTC held an important public proceeding to examine whether the wholesale wireless services market was sufficiently competitive and, if not, what regulatory measures were required.

      Main decisions:

      • The CRTC decided to regulate the rates that Bell Mobility, Rogers and Telus charge other Canadian wireless carriers for domestic wholesale wireless roaming services.
      • The CRTC decided not to mandate the provision of MVNO access services, given concerns that mandating such a service could negatively impact investment in wireless networks.
      • The CRTC decided, however, to take action to reduce barriers, such as removing certain restrictions in wholesale roaming agreements, faced by MVNOs to give them more flexibility in their commercial negotiations with wireless companies.
      • The CRTC concluded that its existing processes were sufficient to address tower- and site-sharing issues related to rates, terms and conditions.

      Main objectives:

      • Continued innovation and investment in high-quality telecommunications facilities
      • Sustainable competition that provides benefits, such as reasonable prices and innovative services, to Canadians, and
      • Implementing efficient regulatory measures for wholesale wireless arrangements along with continued reliance on market forces where appropriate.
CRTC review of merger
  1. Will the CRTC initiate a public consultation to review the merger concerning the telecommunications assets?
    • Under the Telecommunications Act, transactions involving telecommunications services do not require the CRTC’s prior approval.
    • The CRTC has no role in approving transfers of telecommunications ownership or spectrum – except to ensure the company remains Canadian owned and controlled.
Approval of merger
  1. Should the Rogers-Shaw transaction be approved?
    • At this stage, we do not have any more information about this potential transaction than what has been announced to the public.
    • We are waiting for the parties to file the required regulatory documents, so we know only what has been reported in the media.
Impact on competition, investment and consumer choice
  1. What impact will the proposed merger have on competition, investment and consumer choice?
    • As you are aware, the Competition Bureau and ISED are reviewing the transaction.
    • Until any measures are put in place, any comments/predictions on the impacts on competition, investment and consumer choice would be speculative.
    • The options are vast, from approval of the transaction as is, to divesture of assets and subscribers, in part or in whole.
    • The CRTC monitors the market and will continue to do so once any measures are put in place.
    • The CRTC is able to initiate public consultations to address any concerns that arise and implement new regulatory measures, as required.
Reduction in competition, increase in prices and current pricing
  1. If the merger goes through as is, and there is a reduction in competition and increase is telecom prices for Canadians, what will the CRTC do to ensure Canadians have choice and affordable telecommunications services?
    • The CRTC continuously monitors the market and will continue to do so once any measures are put in place.
    • The CRTC is able to initiate public consultations to address any concerns as they arise and implement new regulatory measures, as required.
    • As of 2019, according to the latest available data in the CRTC Communications Monitoring report, the average price for broadband services that met the CRTC’s universal service objective of 50 megabits per second download, 10 megabits per second upload and an offer of unlimited download bandwidth decreased on average over the last four years by decreased 5.6 percent to $69 dollars per month.
    • As of 2019, the average price for mobile services with an offering unlimited voice and text, and 5 gigabytes of data allowance, decreased on average over the last four years by 14% to $49 dollars per month.
Broadband & wireless prices in the west
  1. If the merger is approved, won’t broadband and mobile wireless prices increase in Western Canada?
    • Until any measures are put in place, any comments/predictions on the impacts on competition, investment and consumer choice would be speculative.
    • As of 2019, the average price for broadband services that met the CRTC’s universal service objective of 50 megabits per second download, 10 megabits per second upload and an offer of unlimited download bandwidth decreased on average over the last four years by in British Columbia by 4.8% to $69 dollars per month.
    • As of 2019, the average price for broadband services that met the CRTC’s universal service objective of 50 megabits per second download, 10 megabits per second upload and an offer of unlimited download bandwidth decreased in Alberta on average over the last four years by 2.3% to $74 dollars per month.
      Year AB BC QC
      2016 $79.04 $79.57 $75.28
      2017 $74.77 $75.84 $63.99
      2018 $68.75 $70.26 $60.78
      2019 $73.82 $68.56 $57.07

      Source: CRTC, Communications Monitoring Report

    • As of 2019, the average price for mobile services with an offering unlimited voice and text, and 5 gigabytes of data allowance, in British Columbia decreased on average over the last four years by 17% to $48 dollars per month.
    • As of 2019, the average price for mobile services with an offering unlimited voice and text, and 5 gigabytes of data allowance, in Alberta decreased on average over the last four years by 16% to $48 dollars per month.
      Year AB BC QC
      2016 $81.64 $83.53 $60.07
      2017 $73.52 $74.70 $56.94
      2018 $48.54 $48.56 $44.35
      2019 $47.71 $47.59 $45.43

      Source: CRTC, Government Open Data Portal

Broadband coverage
  1. What is the broadband coverage in Canada? What is the CRTC doing to close the divide?
    • Through a variety of technologies from wired, to fixed wireless to satellite, all Canadians have access to broadband services are varying speeds.
    • The CRTC established a universal broadband objective of 50 megabits per second download, 10 megabits per second upload and an offer of unlimited download bandwidth.
    • As of 2017, 84.1 percent of Canadian households have access to this object and it has increased to 87.4 percent at the end of 2019.
    • The CRTC has established a $750 million dollar broadband fund to support the broadband objective to bring these faster and high-quality broadband services to underserved Canadians.
    • To bring the broadband objective to all Canadians will require commitment and collaboration from private sector and all level of government.

    Second response

    • At the end of 2019, 50/10 Mbps broadband Internet access service with unlimited data capacity, which corresponds to the criteria set out to measure the success of achieving the CRTC’s universal service objective for fixed broadband Internet access service, was available to:
      • 87.4% of Canadian households (compared to 85.7% at the end of 2018)
      • 99.6% of urban households
      • 45.6% of rural households
      • 34.8% of households in First Nations reserves
      • No households in First Nations reserves in Newfoundland and Labrador, Yukon, and Northwest Territories.
CRTC broadband funding
  1. What is the CRTC doing to close the broadband divide?
    • The Broadband Fund has to date committed up to $156.5 million to improve broadband service for 107 communities representing approximately 24,500 households.
CRTC broadband targets
  1. When will Canadians have access to broadband Internet access services that meet the universal service objective (50 Mbps download, 10 Mbps upload, and unlimited data)?
    • Given the current state of telecommunications infrastructure in Canada, the CRTC expects fixed broadband Internet access service to be available in 90% of Canadian homes and businesses by the end of 2021, and 100% as soon as possible.
    • In communities where distance, geography, and limitations to existing technologies present challenges, the CRTC expects that services will gradually improve as Internet access service providers work to progress towards these goals.
    • In November 2020, the federal government announced details on its Universal Broadband Fund, a $1.75 billion funding program that will contribute to extending high-speed Internet to all Canadians by 2030.
    • The CRTC recognizes the need for a collective effort, across all levels of government, to achieve the goal of providing broadband Internet access services to underserved Canadians.
Moving up the broadband target dates
  1. The pandemic has shown us that Canadians cannot wait until 2030 for broadband access. Some have suggested that the target should be moved up to 2021, while others have suggested 2025. In the CRTC’s view, what would be a realistic target and what would need to happen to meet it?
    • The reality is that broadband infrastructure projects do not get implemented overnight. There needs to be a motivated service provider, appropriate and cost-effective technology, and funding.
    • Low-Earth orbit satellites have great promise as they will improve the availability of service and the cost of providing service in remote areas.
    • Federal, provincial and territorial governments need to support broadband in areas where it is not economic for service providers to build infrastructure.
    • The CRTC reviews applications carefully with a view to approving projects that will yield the greatest benefits in closing the digital divide in all regions of the country.
    • The pandemic has affected broadband service providers, too. Service providers must build and improve infrastructure, and may not be in a position where they can accelerate planned infrastructure builds.
    • In November 2020, the federal government announced details on its Universal Broadband Fund, a $1.75 billion funding program that will contribute to extending high-speed Internet to all Canadians by 2030.
    • It will take a collective effort across public, private and non-profit sectors to close the digital divide.
ISED/federal government
  1. Doesn’t Innovation, Science and Economic Development Canada (ISED) already have a program for providing broadband to Canadians?
    • There are currently private and public programs in place to help ensure the provision of broadband Internet access services to Canadians, including some programs established by ISED.
    • On December 15, 2016, ISED launched Connect to Innovate (CTI), a program that aimed to bring broadband Internet access to 300 rural and remote communities across Canada. The program will invest up to $500 million by 2021. This program has been closed for applications since April 20, 2017.
    • In November 2020, the federal government announced details on its Universal Broadband Fund, a $1.75 billion funding program that will contribute to extending high-speed Internet to all Canadians by 2030.
    • The CRTC’s Broadband Fund complements existing and future private investment and public funding, including ISED’s programs.
Cost of the broadband divide
  1. How much will it cost to achieve the universal service objective and close the digital divide? Are you confident that it will be achieved?
    • ISED has been working with the CRTC and provincial and territorial representatives to establish common broadband goals and initiatives to achieve them. The current estimate to close the digital divide is around $8 billion. This includes broadband and mobile wireless coverage along major roads.
    • There are several other variables that can impact costs. For instance, fluctuations in the Canada-U.S. exchange rate can make the cost of purchasing equipment more or less expensive.
    • Depending on the mixture of technology deployed, the costs could be higher or lower.
    • Our immediate focus is on ensuring that 90% of the population has access to a broadband service offering at least 50 Mbps for download, 10 Mbps for upload, and unlimited data by the end of 2021.
Removal of foreign investment restrictions
  1. In light of the planned merger, some industry commentators are saying that the time has come to significantly loosen foreign ownership rules, stating that this is the only way to effectively stimulate competition and reduce prices longer term. How do you respond to that?
    • The Telecommunications Act allows for an entity to operate a transmission facility and can be foreign owned, provided that its revenues earned in Canada represent less than 10% of the total Canadian telecommunications revenues.
    • In order to make any changes to foreign ownership rules, the Telecommunications Act would need to be amended to remove the foreign investment restrictions and that is a Parliamentary decision.
Issuance of mobile wireless decision
  1. When will the mobile wireless decision be issued? How does the news of this merger impact the Commission’s decision regarding the mobile wireless review, either in substance or the timing thereof?
    • Any CRTC decision is based solely on the documents filed with the Commission.
    • The CRTC’s review is predicated on the public record that was established over the course of a year, and would exclude recent considerations such as those associated with the recently announced merger.
    • If and when such a merger were approved, and depending on the conditions associated with the approval, the CRTC could reassess its regulatory framework in light of any substantial changes in the market.
Issuance of wholesale broadband decision
  1. When will the wholesale broadband decision be issued? How does the news of this merger impact the Commission’s decision regarding the wholesale broadband decision, either in substance or the timing thereof?
    • Any CRTC decision is based solely on the documents filed with the Commission.
    • The CRTC’s review is predicated on the public record that was established over the course of a year, and would exclude recent considerations such as those associated with the recently announced merger.

Related links

Date modified: