Habs fury over Rogers breakdown could complicate their merger hopes

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Friday’s outage came two days after Rogers held talks with Canada’s antitrust authority to discuss possible solutions to its stalled C$20 billion ($15.34 billion) takeover of Shaw Communications (SJRb .TO).

Canada’s Competition Bureau blocked the deal earlier this year, saying it would stifle competition in a country with some of the highest telecom prices in the world. The merger is still awaiting a final verdict.

The disruption could prompt the Competition Bureau, which typically assesses mergers by their impact on price, to take a closer look at other considerations such as quality and service, consumer rights groups have said. consumers.

“This is a ‘non-price effect’ (argument) – i.e. the concentration of ownership and control of critical infrastructure makes the failure of basic service delivery increasingly central,” said John Lawford, executive director of the Ottawa-based company. Public Interest Advocacy Center (PIAC), which argued against the merger at the Competition Bureau.

But Vass Bedner, executive director of McMaster University’s public policy program, said the outage was a separate issue from Rogers’ merger plan.

“I don’t think this issue will impact the merger because I don’t know how the Competition Bureau can factor in the risk of a larger outage,” Bedner said.

Michael Geist, a professor at the University of Ottawa who focuses on internet and e-commerce law, said the outage “must be a wake-up call for a government that has fallen asleep on digital policy.”

“Blame for Friday’s outage may lie with Rogers, but the government and (Canada’s telecommunications regulator) should be held accountable for the lack of response,” he wrote on his blog.

On Friday, Canadian Industry Minister Francois-Philippe Champagne called the outage “unacceptable”. High cell phone bills were a hot topic during recent Canadian elections.

The outage, which began around 4:30 a.m. ET (0830 GMT) on Friday before service was fully restored on Saturday, cut off a quarter of observable internet connectivity in Canada, monitoring group NetBlocks said.

The outage was Rogers’ second in 15 months with an external software update that ended service primarily to consumer customers last year.

Reporting by Divya Rajagopal; Written by Amran Abocar; Editing by Chizu Nomiyama

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