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TORONTO — As the fallout from the Rogers Communications Inc. service outage continues to play out, one competition expert says she doesn't think it will"sink" the telecom giant's proposed $26-billion takeover of Shaw Communications Inc., but believes it will make everyone pay closer attention to the deal.
Telecom researcher Ben Klass said the outage shows that further consolidation and concentration of power in the market is"a bad idea" for Canada. "Regulators may point to the outage as another reason why the merger concentrates too much customer traffic with one operator," he said."However, I still believe that the proposed sale of Shaw's Freedom Mobile wireless operations to Quebecor should address this concern."
The Competition Bureau has been trying to block the deal arguing that it would result in less choice for Canadians and lead to higher bills for consumers. Bianca Wylie, partner at Digital Public, said the Canadian Radio-television and Telecommunications Commission should be taking more responsibility for the broad impact of the outage, arguing that the regulatory agency has limited options in the market.
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