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Competition Bureau of Canada

Competition Bureau

Rogers-Microcell Merger Clears Bureau Scrutiny

OTTAWA, November 3, 2004 - The Competition Bureau has cleared the proposed acquisition of Microcell Telecommunications Inc. (Microcell) by Rogers Wireless Inc. (Rogers), after carefully reviewing the merger's competitive effects on the mobile wireless industry.

The Bureau obtained valuable input from competitors, industry participants, consumers and independent experts. It also conducted a detailed financial review of Microcell's current business plan, as well as other corporate documents, and reached the following conclusions:

  • New and innovative products and services will continue to be available to consumers at competitive prices;
  • The merger will not affect either the rapid rate of product and service innovation in the industry or projected increases in consumer demand;
  • It is unlikely the transaction will create or enhance market power in the mobile wireless market;
  • The merger will not increase the likelihood of coordinated behaviour among the major cellular telephone companies, who are expected to continue to compete vigorously to add and maintain subscribers on their networks.

The Bureau also considered Microcell's history of offering innovative, competitive products in the past, including its flat-rate price plans, per-second billing and its City Fido plan in Toronto and Vancouver. However, substantial evidence suggests that Microcell will face significant challenges in maintaining its position as competitors move forward with the next generations of cellular service offerings.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:
Tim Weil
Director of Strategic Communications
Competition Bureau
(819) 953-9271

For general enquiries, please contact:
Information Centre
Competition Bureau
(819) 997-4282
1-800-348-5358

 


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