Telus Cellular Head Sees Roger-Shaw Merger Discount Competitors

Jim Senko, head of Telus Corp’s cell phone unit, stated the sale of Shaw Communications Inc. to Rogers Communications Inc. may curb competitors in key markets, together with western Canada.

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(Bloomberg) — Jim Senko, head of Telus Corp’s cell phone unit, stated the sale of Shaw Communications Inc. to Rogers Communications Inc. may curb competitors in key markets, together with western Canada.

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In an interview Friday after Canada’s No. 3 telco reported its largest second-quarter buyer enhance, Senko stated the proposed sale of Shaw’s cellular belongings to Quebecor Inc., a smaller regional participant primarily based in Montreal, it’s going to seemingly imply a weaker aggressive panorama.

Quebecor’s Videotron cellular unit “would not actually perceive the Western markets and must promote any sort of wi-fi service there at very skinny margins, and it will not be capable of compete in addition to Shaw who owns these belongings,” Senko stated by telephone . .

Rogers has agreed to purchase Shaw in a C$20 billion ($15.4 billion) deal that also requires regulatory approval. Together with debt, the transaction has a price of about 26 billion Canadian {dollars}.

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The merger additionally faces a authorized problem from the nation’s competitors watchdog, which cited considerations about increased costs, poorer service high quality and fewer choices.

Learn extra: Rogers Takeover of Shaw Meets Skepticism; The unfold of the enterprise is expanded

Quebecor has agreed to purchase Shaw’s Freedom Cellular wi-fi service for C$2.85 billion, giving it a possibility to broaden outdoors its core Quebec market. With the sale, Shaw and Rogers hope to ease considerations associated to competitors points.

“I believe Shaw was a really robust competitor,” Senko stated. “That they had the cluster within the west and executed effectively within the Higher Toronto Space with Freedom Cellular.”

Quebecor Chief Govt Pierre Karl Peladeau stated on an analyst name Thursday that he finds the antitrust company’s considerations “incomprehensible” given the necessity for extra competitors within the trade. Citing federal information, Peladeau says Quebec is likely one of the best areas in Canada, with wi-fi service costing lower than different provinces.

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“We should act and we should act now,” he stated.

“Distinctive Packages”

Vancouver-based Telus reported working earnings of C$4.4 billion for the three-month interval ended June 30, up 7.1% on a year-over-year foundation. Adjusted earnings per share of C$0.32, up 23% from 2021, beat the Bloomberg consensus estimate by C$0.03.

Telus reported that it added 247,000 prospects within the second quarter, together with 93,000 in web cellular phone additions.

“We’ve got a really diversified portfolio of merchandise that we are able to put collectively in very distinctive packages,” Senko stated. The cell phone, web and tv supplier additionally affords residence safety options. All providers could be bundled right into a single buy.

For the reason that begin of the pandemic, the corporate has added 800,000 additions to the cell phone community and greater than 600,000 to the cable line.

Telus shares had been little modified in Toronto buying and selling on Friday, closing at C$28.92.



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