Telus calls for ‘safeguards’ on Shaw’s market power

Telus Corp. has called for “safeguards” to limit Shaw Communications Inc.’s market power and potential for anti-competitive behaviour as Shaw seeks CRTC approval of its purchase of Canwest Global Communications’ broadcasting assets. In a comment filed with the CRTC Monday, Telus wrote that Shaw’s $2-billion purchase of Canwest Global will make the company “the largest vertically integrated media company in Canada," which will have “serious implications for the Canadian broadcasting system given the potential for self-dealing and anti-competitive behaviour.” Telus urged the commission to implement conditions on the Shaw acquisition, such as limitations in its agreements with producers, programmers and broadcast distributors. For example, Telus said that, as a condition of licence, the commission should impose a “strict prohibition on content exclusives on all platforms” and a reverse onus on Shaw for “undue preference” complaints related to the carriage of data or content. Telus also proposed “structural separation between carrier and programming operations to prevent any sharing of board members or employees between any of the Shaw affiliated companies.” Telus’ comment with the CRTC comes as the two companies are increasingly battling for customers in the West. Shaw currently offers cable, television, Internet, and phone services, and has plans to offer wireless services late next year. The acquisition of Canwest Global will also make Shaw a major content owner and producer, drawing the Global Television network and Canwest’s stable of specialty channels under its ownership. Telus wrote that the commission should take a “prudent” approach Shaw’s broadcasting licences, as proposed in CRTC’s policy on licensing for broadcasting groups, to give the industry time to adapt. Telus proposed that Shaw’s cable licences be renewed for only a two-year period. Telus also took aim at Shaw’s proposed benefits package arising from the deal, which has come under fire for a lack of benefits for third-party producers and the company’s plan to include in the package an outstanding $95 million in benefits money that Canwest had yet to pay as a result of its purchase of Alliance Atlantis Communications in 2007. Telus said Shaw’s proposed package “makes a mockery of the Commission’s policy” on benefits relating to broadcasting transactions and that 75 per cent of the benefits payments should be dedicated to third-party production. Three days of commission hearings on the transaction are scheduled to start Oct. 20 in Calgary. Comments were due end of day Monday.

Telus calls for ‘safeguards’ on Shaw’s market power

Brief | August 23, 2010

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Telus calls for ‘safeguards’ on Shaw’s market power

Brief | August 23, 2010

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