Canada’s second-largest telecommunications company, BC-based Telus, has approached the Canadian Radio Television and Telecommunications Commission, the country’s telecom regulator, to register its concern and disapproval over the purchase of CanWest’s…
Canada’s second-largest telecommunications company, BC-based Telus, has approached the Canadian Radio Television and Telecommunications Commission, the country’s telecom regulator, to register its concern and disapproval over the purchase of CanWest’s broadcasting arm by rival Shaw Communications.
Telus demanded that Shaw – an integrated company like its cable peers Rogers Communications and Quebecor – must be stopped from granting itself exclusivity for CanWest content across “all platforms,” including on the internet and wireless devices. Telus also demanded that said Shaw should pay “at least” C$200m (US$188m) into the Canadian broadcasting industry.
Last week, Shaw announced that it had received clearance from the Canadian monopolies and mergers watchdog to complete its C$2bn (US$1.9bn) purchase of the television business of media conglomerate CanWest
Canwest has been restructuring its broadcasting and publishing business under bankruptcy protection from creditors since October and already sold off it newspaper and magazine business to the directors of the National Post in a MBO.
Shaw Communications, originally founded as a cable TV company, has been aggressively trying to expand into the Canadian telecoms market and push out of its traditional areas of strength in Western Canada and north of Ontario.
Telus is not happy about Shaw’s growth, as Telus itself is trying to diversify from its traditional areas of strength in fixed and mobile voice communications to added services such as mobile TV.
In a submission to the CRTC on Monday, Telus lashed out at Shaw’s acquisition, saying the regulator must act to prevent “self-dealing and anti-competitive behaviour” from Shaw that could harm the Canadian broadcasting system.
Shaw is preparing to roll out a wireless mobile network in 2011, and will use CanWest content to sweeten the offer to its existing subscribers. CRTC rules force Shaw to offer CanWest programming to competing TV distributors, including Telus and Bell Canada’s TV satellite business.
Those regulations, called the “undue preference” rule, are designed to ensure that convergence between broadcasters and distributors does not threaten Canadians’ access to particular content. But regulating content exclusivity on wireless devices remains a grey area, and this is what Telus is trying to clarify.
Representatives of Telus, CanWest or Shaw were unavailable for comment at the time of going to press.
The Shaw Family has also been buying-back its own shares, purchasing 1 million more shares yesterday. According to information provided to the company, the Shaw Family now holds 49,217,591 Class A and Class B shares in Shaw Communications. The family advised the company that it would continue its practice of purchasing shares on a regular basis.
