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Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23

Rogers trying to buy WIND Mobile (without actually buying)

»www.theglobeandmail.com/report-o···3571602/

It seems that Rogers believes that they've found a loophole in the government's wireless policies to get around the whole "incumbents can't buy AWS spectrum" problem.

Their plan is to use a third-party investment firm as a cutout while financing some (or most?) of the deal themselves. Rogers would technically not own any of WIND, but the money they invest would be called payment for a network-sharing agreement. In other words, Rogers "buys" WIND mobile, and gets their network/spectrum, but doesn't technically violate any government policies because they don't technically own the network/spectrum, they merely have exclusive use of it.

It's even possible that the investment firm could sign a branding agreement with Rogers to market WIND as a Rogers service.
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MFido

join:2012-10-19
kudos:2
Not really what the Gouvernement was / is looking for


HiVolt
Premium
join:2000-12-28
Toronto, ON
kudos:21
reply to Guspaz
Im pretty sure the govt would see it for what it is and block it.
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elwoodblues
Elwood Blues
Premium
join:2006-08-30
Somewhere in
kudos:2
Reviews:
·VMedia
reply to Guspaz
Verizon is making a formal offer next week.

Rogers doesn't stand a chance,Anthony Lacavera owns 2/3rd of the voting shares..

»business.financialpost.com/2013/···-rivals/
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MFido

join:2012-10-19
kudos:2
reply to Guspaz


zed173

join:2010-07-17
Mississauga, ON
reply to Guspaz
That's interesting, it was Birch Hill who bought up Fibrewired Hamilton, SCBN, etc.(ie. Atria Networks), rolled them all together and sold them to Rogers a few years ago.


twizlar
I dont think so.
Premium
join:2003-12-24
Brantford, ON
kudos:3
Ofcourse they did, several of the birch hill partners worked at a high level for rogers.


zed173

join:2010-07-17
Mississauga, ON
Oh ya? Didn't know that, but not terribly shocked either


TwiztedZero
Nine Zero Burp Nine Six
Premium
join:2011-03-31
Toronto, ON
kudos:5
reply to HiVolt
said by HiVolt:

Im pretty sure the govt would see it for what it is and block it.

Yes, possibly. And I do think there are rules for kicking open a "shell" corporation you know Prenda Law style...
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markf

join:2008-01-24
Burlington, ON
kudos:1
Reviews:
·WIND Mobile
·ELECTRONICBOX
·Execulink Telecom
reply to Guspaz
said by Guspaz:

Rogers believes that they've found a loophole

Aren't they asking the government to close the loopholes? The incessant radio ads are asking the government to do so.

The lengths the big 3 will go to keep competition out (not that I'm a fan of the Verizon interest).


Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23

1 recommendation

reply to Guspaz
They're asking the government to close loopholes that don't exist (they consider the entirety of the foreign ownership rules to be a "loophole") while simultaneously trying to exploit loopholes that do exist.
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twizlar
I dont think so.
Premium
join:2003-12-24
Brantford, ON
kudos:3
reply to zed173
None of these shenanigans surprise me anymore.

markf

join:2008-01-24
Burlington, ON
kudos:1
Reviews:
·WIND Mobile
·ELECTRONICBOX
·Execulink Telecom
reply to Guspaz
I was more mocking them than anything.

In reality though the government needs to get off the fence. Either allow foreign ownership or not.

A company the size of Verizon will be able to muscle their way into a "Big 4" position very quickly relative to a start up if they want to do that, then yes the playing field is unlevel.

From a purely business perspective, how can you allow a major piece of the market to be owned and controlled by a foreign company, but then restrict access to foreign capital from existing companies?

If the government feels that opening up the market to foreign investment is a good idea, then do it. The current position of the government is not equitable for all companies in the market.


Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23
reply to Guspaz
Oh, I agree that the playing field isn't level; I'm in favour of completely removing the foreign ownership restrictions. It's just that the big three's arguments against them are full of lies and half-truths.

Removing foreign ownership restrictions entirely on companies under 10% marketshare was a good first step towards removing it entirely.

That said, why does the playing field need to be level? The only way to attract new foreign entrants is to make the investment more attractive to them... Business isn't about what's fair.
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Weaver2

join:2012-03-10
reply to Guspaz
Lulzing so hard. In this very video »www.fairforcanada.ca/#intro "Michelle from Rogers Network Planning" says "Ottawa should do something about the loopholes".

A company is too powerful when it doesn't even need to hide its own hypocrisy.


mlerner
Premium
join:2000-11-25
Nepean, ON
kudos:5
reply to HiVolt
said by HiVolt:

Im pretty sure the govt would see it for what it is and block it.

According to IC's own rules, there's nothing to block unless Rogers gets a controlling interest. This should be interesting to watch though.