Business

Teksavvy asks CRTC to block proposed sale of Freedom Mobile to Videotron

TekSavvy Solutions Inc. is asking the federal telecommunications regulator to review a key part of Rogers Communications Inc.'s plan to buy Shaw Communications Inc. and sell Shaw's Freedom Mobile wireless business to Videotron.

Independent ISP from Ontario says stipulations of deal are unfair

TekSavvy says stipulations in the deal Rogers struck to sell Freedom Mobile to Videotron are anticompetitive. (Darryl Dyck/Canadian Press)

TekSavvy Solutions Inc. is asking the federal telecommunications regulator to review a key part of Rogers Communications Inc.'s plan to buy Shaw Communications Inc. and sell Shaw's Freedom Mobile wireless business to Videotron.

The independent internet service provider is asking the CRTC to investigate the part of the deal covering wholesale broadband network arrangements between Rogers and Quebecor Inc.'s Videotron.

The Ontario-based provider of internet services says the entire sale hinges on a wholesale access arrangement that will see Rogers ease its broadband network to Vidéotron at discounted rates that aren't available to independent ISPs, such as TekSavvy.

TekSavvy says deals like that over network access violate the Telecommunications Act and are anticompetitive.

As part of its plan to address competition concerns, Rogers wants to sell Freedom to Videotron in a move that would expand the Quebec-based company's wireless operations nationally.

The Competition Tribunal dismissed an attempt by the Competition Bureau to block the Rogers-Shaw deal late last year in a decision that said the sale of Freedom to Videotron was adequate to ensure competition isn't substantially reduced.

The Competition Bureau is appealing the decision.

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