Acquisitions Are Top of Mind in 2023: Market Shrinkage Could Hurt Consumers

By Alex Kerai

Last updated 03 February 2023

WhistleOut fast facts

Rogers Communications has been working to acquire Shaw Communications since 2021. The deal would create the second-largest telecom company in Canada.
The Big 3 telecom companies own 90% of the market and charge some of the highest wireless rates in the world.
Rogers’s efforts at appeasing the Competition Bureau and the Minister of Innovation, Science and Industry are so far falling short.
In an end-of-the-year twist, Bell acquired telecom company Distributel in December 2022.

In March of 2021, Rogers Communications announced a deal to buy Shaw Communications for $26 billion. Rogers is already a large telephone and internet company, and this deal would make it the second-biggest telecom company in Canada.

So what’s the issue with one company acquiring another? Acquisitions frequently happen in other industries, but this time, it came after the Liberal government ordered Shaw, Bell, and Telus to cut prices by 25% or face regulatory action. (Companies reached the commitment in January 2022; however, the Roger deal has not yet closed as of publication.)

Now, Rogers and Shaw have little overlap in operation areas for cable and internet — Shaw is in western Canada while Rogers is in eastern Canada — but their mobile businesses are competitors. Canadians already face high prices due to limited competition. The Big 3 companies own 90% of the market and charge more for the same service level found in countries like the United States and Australia. A report from Rewheel found that Canadians have the second-highest wireless gigabyte price in the world.

The acquisition of Shaw could raise prices again and limit plan options for consumers.

“We need more competition in Canada – not less,” Laura Tribe, executive director of OpenMedia, a community-driven organization focused on internet accessibility, said in a statement. “Over the years, we’ve seen competitor after competitor swallowed up by the Big 3. The result is always the same – more profits for the Big 3, worse plans and less choice for Canadians.”

In an effort to appease sceptics, Rogers has said it will sell its subsidiary, Freedom Mobile, to Vidéotron (a subsidiary of Quebecor). While the Freedom Mobile - Vidéotron and Rogers - Shaw acquisitions have since beaten the Competition Bureau’s opposition in court, the Minister of Innovation, Science and Industry has the final say.

The companies have extended the deadline for both deals to February 17.

And in a late end-of-year twist, Bell Communications quietly announced the completion of its acquisition of Distributel, a rival telecom company. The two companies announced the acquisition in September and noted that Distributel would continue to operate independently.

It’s unclear whether the deal faced the same regulatory scrutiny and when it gained approval.

Overall, these acquisitions can potentially harm telecom customers as they search for the best deal. While reduced competition is never good, we’ve combed through the data on all wireless carriers to find you the best deal.

#1	Rogers	Rogers Infinite Extra Plan Unlimited 175GB at speeds up to 1Gbps $80/mth Go	$80/mth	Go
#2	Freedom Mobile	Freedom Mobile $60 5G Unlimited 100GB CA-US plan Unlimited 120GB full-speed data at 5G Deal: Black Friday Offer: Receive 20GB Roam Beyond data on this plan + Get $5/mo. off for 18 months when you activate on this plan $55/mth + $45 Upfront Go	$55/mth + $45 Upfront	Go
#3	Public Mobile	Public Mobile $36 Unlimited Canada-US Talk + Text + 50GB 50GB at 5G full speeds up to 250Mbps Deal: Receive $1.80/mo. in points value with Public Points + Get a FREE eSIM or $5 off on a physical SIM with new activation on this plan $36 + $5 Upfront Go	$36 + $5 Upfront	Go
#4	Chatr Wireless	Chatr Wireless $15 Nationwide Talk & Text plan 500MB data Deal: Get 500MB bonus data when you sign up with Auto-Pay $15 Per 1 Month Top-up + $10 Upfront Go	$15 Per 1 Month Top-up + $10 Upfront	Go
#5	Fido	Fido $44 Data, Talk & Text Plan with 60GB 60GB data at download speeds up to 150Mbps Deal: Black Friday Offer! Get $10/mo. discount when you activate on this plan $44/mth Go	$44/mth	Go
#6	SaskTel	SaskTel totalSHARE Nationwide Unlimited Full speed data Deal: Black Friday Offer: Get 25GB/mo. bonus for 24 months with this plan + Get $20/mo. off when you bring your own phone or buy a phone at full price + Get Student Promo up to $20/mo. off $70/mth + $50 Upfront Go	$70/mth + $50 Upfront	Go
#7	Koodo Mobile	Koodo Mobile $40 Prepaid Base Plan 75GB at 4G speed up to 100Mbps Deal: Black Friday Offer: Get FREE third month of service with new activation on this plan $40 Per 30 Day Top-up + $10 Upfront Go	$40 Per 30 Day Top-up + $10 Upfront	Go
#8	Virgin Plus (previously Virgin Mobile)	Virgin Plus (previously Virgin Mobile) $35 Plan with 50GB Data and Unlimited Minutes 50GB at 4G speeds up to 150Mbps $35/mth Go	$35/mth	Go
#9	Telus	Telus Nationwide Talk & Text 15 250MB data Deal: Get a bonus 250MB data when you sign-up with auto-payment options and use the promo code 250AUTO $15 Per 30 Day Top-up + $15 Upfront Go	$15 Per 30 Day Top-up + $15 Upfront	Go
#10	Fizz	Fizz Unlimited Minutes & Text Messaging + 3GB Data 3GB data at download speeds up to 150Mbps $17/mth + $5 Upfront Go	$17/mth + $5 Upfront	Go