Rogers and Shaw - Mr. Bell's Blog
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National
Rogers and Shaw
– A Proposed Merger of Two Giant Telecoms
The Canadian business world use its cable, fibre, wireless, and The cons
was all abuzz in March. The 5G networks to expand business. Why are some people against the
reason: Rogers Communications union? Canadians already pay
…but an iffy one
announced that it planned to some of the highest cellphone
buy Shaw Communications for The merger is set for 2022, but
and Internet costs in the world.
$26.2 billion. there’s no guarantee it will go
Those in the “no-merger” camp
through. For one thing, people
A big deal… say that's because too few firms
who own shares in the two
now control the market. In
If it goes ahead, the deal companies must first vote to give
places such as the U.S., where
between the two Internet and the agreement the go-ahead.
many companies compete with
cellphone providers would be
As well, the deal must get the one another, firms have to lower
one of the nation’s biggest-ever
okay from three government their prices to attract business.
business takeovers.
agencies that monitor industry That benefits customers.
The arrangement would also in Canada. They are the
By contrast, in Canada, just
make Rogers the second-largest Canadian Radio-television
three companies control most
telecommunications company and Telecommunications
of the telecom industry. They
in Canada. Only BCE, which Commission (CRTC),
are Rogers, Bell, and Telus. To
owns Bell Canada, would be Innovation Canada, and the
maintain their advantage, the
bigger. It would give Rogers Competition Bureau. These
so-called Big Three have bought
national reach, too. At present, regulators will try to determine
smaller competitors over the
Rogers operates mainly in if the advantages outweigh
years. If you purchase a phone
Ontario, while Shaw mostly drawbacks for Canadians. That’s
from Virgin Mobile or Lucky
covers the west. With a a tough call, since analysts are
Mobile, for example, you are
cross-Canada firm, Rogers could divided over the issue.
actually buying one from Bell.
Definitions
merger: the act of joining two or more organizations or takeover: the act of taking control of a company by buying
businesses into one most of its shares
regulator: an organization that officially controls an area telecommunications: the technology of sending signals,
of industry and makes sure that it is operating fairly images, and messages over long distances by radio, phone,
share: a percentage of ownership in a company television, satellite, etc.
2020/2021: Issue 7 What in the world? Le vel 1 Page 5National
Rogers and Shaw
– A Proposed Merger of Two Giant Telecoms
Similarly, Rogers owns Fido and
Chatr. Telus owns Koodo and Rogers, Shaw and the 5G factor
Public Mobile. Each brand’s People who support the Rogers-Shaw merger say it will be a big
features may differ, but prices are win for Canada’s 5G roll-out. What exactly is 5G? It stands for
similar. fifth-generation mobile phone technology. 5G offers download speeds
ten to twenty times faster than those we have now. 4G technology can
“Competitor after competitor download an HD movie in about 30 minutes. That would take about
has been swallowed up by the 25 seconds with 5G. Such higher download speeds could transform the
Big Three,” says consumer classroom experience. For example, with goggles you could stream 3D,
advocate Laura Tribe. “The 360-degree-view videos and wander through an ancient civilization.
result is always the same: more 5G will also provide greater capacity. Many more devices have access to
profits for [them], worse plans the mobile Internet at the same time. Today’s smartphones are mainly
and less choice for Canadians.” used for person-to-person communication. But 5G sets the stage for
the 'Internet of Things.’ These ‘things’ are devices such as equipment
So how does Shaw fit in the mix?
sensors, video cameras, streetlights, and home appliances. 5G lets them
It is the fourth-largest telecom talk directly to each other. The result? ‘Smart’ homes and ‘smart’ cities.
in Canada. It owns Freedom Self-driving cars will communicate instantly through 5G with other
Mobile. Freedom has challenged cars on the road, and with sensors installed along ‘smart’ roads. The
the Big Three with competitive network could then send instructions to cars to avoid accidents.
prices. If Rogers takes over Shaw,
Freedom’s incentive to compete Fund if it joins with Shaw. And having industry help upgrade
could vanish. it would also invest $6.5 billion Canada’s Internet service appeals
the pros to build a strong 5G network in to the government, too. One
Western Canada. That would possible trade-off ? Regulators
Other experts, however,
help us compete economically could order the Big Three to lease
believe the merger is good for
with other countries. network access to small firms
the country. Why? Half of
that offer competitive pricing.
rural homes and two-thirds “5G is about nation-building,”
Current rules don’t allow that.
of Indigenous communities says Rogers head Joe Natale. “It’s
in Western Canada don’t vital to boosting productivity. It In any event, finding a balance
have high-speed Internet or will help close the connectivity between advancing innovation
cellphone access. Nowadays, gap faster in rural, remote, and and lowering cellphone costs will
online shopping and working Indigenous communities.” be key to allowing the merger.
from home are common. So The Liberals' dilemma “These goals will be front
this ‘digital divide’ is a true and centre,” said Innovation
disadvantage. The federal Liberal government
Minister François-Philippe
is in a tough spot. It has
Rogers says it will address this Champagne. J
promised to lower wireless costs
divide. It plans a $1-billion Rural by 25 percent. Prices have come
and Indigenous Connectivity down, but not that much. Yet
Definitions
advocate: a person who supports or speaks in favour of incentive: something that encourages a person or an
somebody or of a public plan or action organization to act in a particular way
2020/2021: Issue 7 What in the world? Le vel 1 Page 6National
Rogers and Shaw
– A Proposed Merger of Two Giant Telecoms
COMPREHENSION QUESTIONS
1. How do consumers benefit if many companies compete for their business? Explain.
2. List the 'Big Three' telecommunications companies in Canada.
3. Which telecom company is the fourth largest?
4. Describe the proposed merger between Rogers and Shaw and the reasons for this takeover.
5. In which regions of Canada do these two companies currently operate?
6. What two steps must happen for this takeover to go ahead?
7. Explain what the 'digital divide' means across Western Canada.
8. What is 5G? Explain.
9. List at least three capabilities of 5G technology.
2020/2021: Issue 7 What in the world? Le vel 1 Page 7National
Rogers and Shaw
– A Proposed Merger of Two Giant Telecoms
ORGANIZER
A. Using the information in the article and your own thinking, what are some of the pros and cons of
the merger of Rogers and Shaw? Give specific details to back up each point.
Pros Cons
• •
• •
• •
• •
• •
• •
• •
• •
• •
B. After completing the organizer, answer the following: Are you more in favour of or more opposed to
a merger between Rogers and Shaw? Give reasons to support your response.
2020/2021: Issue 7 What in the world? Le vel 1 Page 8National
Rogers and Shaw
– A Proposed Merger of Two Giant Telecoms
QUESTIONS FOR FURTHER THOUGHT
1. The article includes the following quote from Joe Natale, president and CEO of Rogers: "5G is about
nation-building. It's vital to boosting productivity and will help close the connectivity gap faster in
rural, remote, and Indigenous communities."
Do you agree or disagree with this statement? Give specific examples to support your ideas.
2. Consider and list the many tasks and activities that you do every day that require the use of the
Internet. Imagine how different your life would be if you weren't digitally connected. Which aspect of
your life would be the most challenging without that connection? Explain.
2020/2021: Issue 7 What in the world? Le vel 1 Page 9National
Rogers and Shaw
– A Proposed Merger of Two Giant Telecoms
QUESTIONS FOR ONLINE EXPLOR ATION
Note: The links below are listed at www.lesplan.com/en/links for easy access.
1. The proposed merger of Rogers and Shaw will require the approval of three regulatory groups that
monitor industry in Canada before it can be finalized. As with any business deal, there are multiple
perspectives on whether this deal will be beneficial for consumers.
Visit the links below to learn more about the agreement from industry analysts:
https://www.yout-ube.com/watch?v=YQEgoBL3NRs [1:48]
https://www.yout-ube.com/watch?v=PShLvRTM19w [1:47]
https://www.yout-ube.com/watch?v=dgGw-31lw1s [2:44]
https://www.yout-ube.com/watch?v=d6pba5F7QG8 [2:15]
What questions or concerns do you still have about this proposed merger? Give details to support your
ideas.
2. The use of 5G and the capacity that it creates for communication between multiple devices seems
infinite. Visit the links below to learn more about "the Internet of Things" and some of the possible
applications and uses of this network of smart devices:
https://www.yout-ube.com/watch?v=uEsKZGOxNKw [2:26]
https://www.yout-ube.com/watch?v=NnB-iSrqbFY [1:56]
Share an example of how the 'Internet of Things' can be helpful in our everyday lives.
What questions or concerns do you still have about the 'Internet of Things'? Explain.
2020/2021: Issue 7 What in the world? Le vel 1 Page 10National
Rogers and Shaw
– A Proposed Merger of Two Giant Telecoms
INFOGR APHIC
The faster 5G network coming soon
With the first 5G-ready smartphones expected to be released in 2019,
mobile phone operators are gearing up to test the new super-fast network
COMPARISON 4G 5G
Latency 10 1 millisecond(s)
Data traffic 7.2 50 exabytes/month*
Available spectrum 3 30 GHz
Connection density 0.1 1 million connections/km2
WHERE 5G IS LOCATED 300GHz
3kHz 30kHz 300kHz 3MHz 30MHz 300MHz 3GHz 30GHz
VLF LF MF HF VHF UHF SHF EHF
Very low Low Medium High Very Ultra Super Extremely
Maritime radio AM radio SW radio FM radio 3G/4G Wi-Fi Satellites
Electromagnetic spectrum: 5G will occupy clutter-free areas around 3G/4G
(European allocations shown Sub 1GHz, 1GHz-6GHz, above 6GHz)
COUNTRIES FIELD TESTING OR RESEARCHING 5G
Field testing
Researching
MOBILE NETWORK EVOLUTION
Maximum Data transfer Time to download
Year Generation data speed per second full HD movie
1979 1G none (voice only) n/a n/a
1991 2G 14.4 Kbps 1.8K Over a month
2000 2.5G 53.6 Kbps 6.7K Over a week
2001 3G 384 Kbps 48K Over a day
2010 4G 100 Mbps 12.5MB 7 minutes
2020 5G 1 Gbps 125MB 40 seconds
* 1 exabyte = 1 billion gigabytes Theoretically possible 5GB file size
Sources: Wired, 5G, Qorvo, European Commission Picture: Marvel © GRAPHIC NEWS
2020/2021: Issue 7 What in the world? Le vel 1 Page 11National
Rogers and Shaw
– A Proposed Merger of Two Giant Telecoms
ANALYZING AN INFOGR APHIC
What is the purpose of
this infographic? Who is the intended
audience?
What information is new
or interesting? What features are used to clarify
the message?
What information is How does the
significant or information presented
important? enhance your
understanding?
What questions do you still have about the topic presented?
2020/2021: Issue 7 What in the world? Le vel 1 Page 12National
Rogers and Shaw
– A Proposed Merger of Two Giant Telecoms
PUT TING IT ALL TOGETHER
A. Write the letter that corresponds to the best answer on the line beside each question:
______ 1. How much money did Rogers offer to buy Shaw Communications?
a) $500 million b) $4 billion
c) $26 billion d) $83 billion
______ 2. In which part of Canada does Shaw mainly operate?
a) Atlantic Canada b) Quebec
c) Ontario d) Western Canada
______ 3. What is the first step in the Rogers-Shaw merger process?
a) the CRTC must give its approval b) shareholders must agree to the takeover
c) Parliament must OK the deal d) AT&T must consent to the merger
B. Mark the statements T (True) or F (False). If a statement is True, write one important fact to
support it on the line below. If a statement is False, write the words that make it true on the line below.
______ 4. True or False? Canadians pay some of the highest cellphone and Internet costs in the world.
______ 5. True or False? There is very little competition among cell phone providers in the U.S.
______ 6. True or False? 5G technology only improves download speeds by about 25 percent.
C. Fill in the blanks to complete each sentence.
7. _______________________ has promised to invest $6.5 billion in a 5G network for Western Canada.
8. Shaw is the _______________________-largest telecommunications company in Canada.
9. 5G will allow for the "Internet of _______________________ " – devices that can talk to each other.
D. Respond to the following question in paragraph form. (Use a separate sheet of paper if necessary.)
10. As you see it, will the proposed Rogers-Shaw merger be more of a benefit or more of a drawback for
the majority of Canadians? Give reasons to support your response.
2020/2021: Issue 7 What in the world? Le vel 1 Page 13You can also read
