VANCOUVER – Canadians aren’t exactly in love with the two largest telcos getting together in a merger, but they say they really fear an American owning Bell Canada.
In an online survey of 1,177 Canadians done last week by polling firm Angus Reid, 44% of respondents said the proposed purchase of Bell by Telus makes them uncomfortable, even if the service is not affected, while 42% see no problem with the deal.
However, 65% of Canadians prefer a Bell-Telus merger over a Bell partnership with a U.S. company.
The provincial breakdown shows that at least 61% of respondents in Atlantic Canada, Quebec, Ontario, Manitoba and Saskatchewan, and British Columbia reject a deal between Bell and a U.S. company. Opposition was slightly lower in Alberta (56%).
Last week, as reported by Cartt.ca, Bell Canada and Telus said they are discussing a possible merger. The three other potential bidders for Bell Canada Inc. are all largely private equity investors, two of which are supported by well-known U.S. partners.
Almost half of respondents (48%) think the federal government should not approve the merger if it does occur. Far fewer think the government should endorse the deal (27%), while the rest are unsure (25%).
As far as the actual effect of a possible merger, 68% of respondents expect an increase the cost of wireless services, 62% think the price of Internet access is also likely to rise, and only 31% believe the merged company is likely to improve its services. In addition, four-in-five Canadians (80%) foresee massive layoffs if the companies do join together.
(Ed note: And yet 42% of the same poll respondents see "no problem" with the deal. Anyone else see a bit of a conflict among these poll respondents?)
By region, respondents in Alberta and British Columbia—where most of Telus’ consumers and employees reside—show a high level of concern about the proposed deal. Quebec is the Canadian province where more respondents both see no problem with the merger (46%) and want Ottawa to approve it (33%).
Young people seem especially indifferent to the merger if their service is unaffected. Almost half of Canadians aged 18-34 (49%) say they would have no problem with the Bell-Telus deal, if service remains consistent.
