Analysts: Bell’s Astral Takeover Bad for Canadian Competition

Say no to bell | BCBusiness
Telecom competitors formed a coalition to oppose the Bell-Astral takeover.

Some telecommunication industry experts are crying foul over the $3.4-billion acquisition.

In an industry some might say already lacks competition, telecom experts are vehemently opposing a new takeover deal they say would be bad for the entire country.
 
Back in March, Bell announced it would acquire Astral Media in a $3.4-billion deal. And now as Canada’s competition bureau examines the takeover bid, Bell’s competitors have launched a campaign to rile up cable customers.
 
Titled “Say No to Bell,” the campaign unites media competitors such as Quebecor, Eastlink Communications and Cogeco Cable against the deal. The companies launched an accompanying website to spread the message to consumers. According to the site’s section “An Open Letter to Canadian TV Viewers,” Bell already owns some of the country’s most popular TV channels, and the Astral acquisition would bump the company up to 107 radio stations, 79 channels and more than 100 websites, making it “twice as large as its nearest competitor.”
 
The telecom coalition claims the successful acquisition means Bell could charge customers whatever they wanted for popular channels such as HBO Canada and The Movie Network, and consumers could be forced to also purchase phone, wireless and/or Internet services to watch the programs you want.
 
While the media execs are putting up a front of concern for Canadian consumers, I’m willing to bet they’re much more worried about their own bottom lines. The takeover would edge Bell closer to having a bona fide media monopoly, which obviously makes its rivals very nervous.
 
But with all the coverage, the CRTC will likely receive a flood of comments from cable customers. If there’s enough of a public backlash, the CRTC may relent and halt the deal.