January 20, 2023 5:02am
TekSavvy Options, based mostly in Chatham, is disputing a deal made between Rogers and Vidéotron that the corporate says is unfair to its enterprise and different smaller web service suppliers (ISPs).
TekSavvy filed an software on Thursday difficult the legality of what it’s calling the “preferential” association and is demanding a ruling by the Canadian Radio-television and Telecommunications Fee (CRTC) earlier than the federal authorities makes a closing determination on the enormous merger between Rogers and Shaw.
Rogers is proposing a $26 billion merger with Shaw and the acquisition of Shaw’s wi-fi spectrum licenses and Freedom Cell enterprise by Vidéotron, one thing that doesn’t sit nicely with TekSavvy’s Vice-President of Regulatory and Service Affairs Andy Kaplan-Myrth.
TekSavvy mentioned the whole transaction hinges on particular wholesale preparations, together with one the place Rogers will lease its broadband community to Vidéotron at discounted charges that aren’t accessible to unbiased ISPs, resembling TekSavvy.
Kaplan-Myrth mentioned TekSavvy will probably be neglected within the chilly in terms of particular charges for accessing broadband and he’s asking the CRTC to analyze the wholesale preparations between Rogers and Vidéotron saying it violates Part 27(2) of the Telecommunications Act.
“The biggest consolidation within the historical past of the Canadian telecom sector relies on illegal wholesale agreements. This transaction is designed so the dominant carriers can weaponize the ISPs they acquired, utilizing below-tariff charges to get rid of us from the market,” mentioned Kaplan-Myrth. “The CRTC has unique jurisdiction over this matter, and it should render its determination earlier than the Minister makes his closing determination on the merger.”
TekSavvy argues that the agreements between Rogers and Vidéotron are “transparently anti-competitive” and merely a determined try and safe regulatory approvals.
“These preparations weren’t arrived at by way of negotiations based mostly on pure market forces, however are as a substitute an effort by Rogers to take away regulatory hurdles to its acquisition of one other Incumbent, Shaw. The association with Vidéotron is particularly designed to permit Vidéotron and its TPIA-based affiliate, VMedia, to raised compete than it may utilizing tariff charges,” Kaplan-Myrth mentioned.
TekSavvy additionally mentioned federal approval for the merger have to be contingent upon first enacting CRTC’s 2019 determination to decrease regulated charges, one thing that was declined final 12 months and went up as a substitute.