The CEO of Canadian operator Shaw Communications pointed to the necessity of its proposed takeover by domestic rival Rogers Communications to push the full benefits of 5G in the country and rapidly expand connectivity.
In the company’s fiscal Q2 results statement (covering the three months to end-February), Brad Shaw argued it would take significant investment to deliver the full opportunity offered by 5G in Canada, with its proposed takeover cited as a way to help achieve this.
“Under a combined Rogers and Shaw entity, we will enable the scale, assets and capabilities to accelerate unprecedented investment,” he said, noting the combined company would be able to help quickly address a connectivity gap in rural and remote areas of the country.
The comments come a month after the executive appeared alongside his counterpart from Rogers Communications at a parliamentary committee to argue the benefits of the tie-up, with the two pushing the competition benefits.
Following the executives’ appearance in front of the committee, Bloomberg reported comments from Canada’s Minister of Innovation, Science and Industry Francois-Philippe Champagne claiming the merger could cause “very serious” competition issues.
The deal is subject to regulatory approvals and is currently expected to close in the first half of 2022.
In terms of Shaw Communications’ quarterly performance, it booked a 30 per cent year-on-year increase in net profit to CAD217 million ($173.7 million) on revenue of CAD1.4 billion (up 1.8 per cent).Subscribe to our daily newsletter Back