TORONTO – A proposal for the sale of Freedom Mobile has been presented to the federal government in an effort to ensure Rogers Communications’ acquisition of Shaw Communications is approved.
The Globe and Mail is reporting two unnamed sources confirmed the proposal presented was put forward by rural Internet provider Xplornet Communications.
Multiple proposals for Freedom’s sale have been put to Rogers since Minister of Innovation, Science and Industry François-Philippe Champagne released a statement at the beginning of last month saying he would not permit Rogers to acquire all of Shaw’s wireless assets.
Rogers needs approval from ISED, the Competition Bureau and the CRTC to complete its acquisition of Shaw. Neither ISED nor the Competition Bureau have made a final decision, while the CRTC approved the transfer of Shaw’s broadcast licences to Rogers late last month.
Not much is known about the Competition Bureau’s process, but Champagne made it clear in his statement at least part of Freedom will need to be sold for ISED to give its approval.
Anthony Lacavera, who founded Freedom (originally Wind Mobile), has urged the government to ensure Freedom is purchased by a company that can provide “a real alternative” to Bell, Telus and Rogers, noting competition is good for consumers.
Champagne would seem to agree, having said in his statement the “government is making every effort to ensure that telecommunications services are reliable, innovative, competitive and – most crucially – affordable.”
An open letter published by Lacavera suggests he believes his company Globalive is best positioned to provide this competition and help lower prices in Canada.
It is not clear whether the government will see Xplornet as a suitable buyer for Freedom – a spokesperson for ISED would not even confirm whether it is considering an application from the company at this point.
“As the Minister’s recent statement on the proposed acquisition stated, our government is strongly committed to promote competition and ensure cell phone affordability for Canadians,” a spokesperson from ISED told Cartt.ca via email. “As the regulator responsible for approving the transfer of licensed spectrum, he will review any applications on their merit and what is in the best interest of Canadians.”
When asked for more information, the spokesperson said, “We do not presently have anything further to provide at this time.”
Xplornet did not respond to a request for comment from Cartt.ca, and Rogers is declining to comment, with the company’s president and CEO Tony Staffieri telling investors earlier today they will not be commenting on rumours.
