Canada: Telus urges CRTC to “prevent creation of dominant telecom provider”

Image copyright Getty Images Image caption Industry Minister Jim Carr has been asked to intervene in the merger

Telus Corp has urged the Canadian Radio-television and Telecommunications Commission (CRTC) to “prevent the creation of a dominant telecom provider” following the proposed takeover of the Canadian cable company Shaw Communications Inc.

The telecommunications giant is jointly owned by Telus and Rogers Communications.

The CRTC is set to rule on the merger in May.

In a filing, Telus says it would maintain its stake in Shaw, though it did not state how much it would keep.

It is believed Shaw’s rival, Rogers, would eventually acquire Telus.

The merger will affect the competitiveness of the Canadian telecom market, Telus argues.

The CRTC is tasked with ensuring that “communications markets are open and competitive so that Canadians can benefit from better, more innovative services that best serve their unique needs and preferences”.

Proceed with merger

The public has until Tuesday to comment on the proposed transaction.

Both Shaw and Rogers filed formal comments in September 2017.

Both companies say they were formed from mergers that “have created and sustained the very efficiencies” they are proposing.

“Those efficiencies, and our respective growth prospects, will provide significant value to Canadian consumers and shareholders,” they write.

Some analysts are advising caution over the proposed deal – the price of Shaw’s shares has risen 34% since talks between the two firms first broke out.

Shaw’s CEO, Brad Shaw, has suggested that a range of possible outcomes could be considered should the deal be rejected by the CRTC.

Some have said the deal would be better for cable companies – because the company would be in a better position to compete with the likes of Telus and Rogers.

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