National Rogers and Shaw – A Proposed Merger of Two Giant Telecoms
Th e Canadian business world use its cable, fi bre, wireless, and The cons was all abuzz in March. Th e 5G networks to expand business. Why are some people against the reason: Rogers Communications …but an iffy one union? Canadians already pay announced that it planned to some of the highest cellphone Th e merger is set for 2022, but buy Shaw Communications for and Internet costs in the world. there’s no guarantee it will go $26.2 billion. Th ose in the “no-merger” camp through. For one thing, people say that's because too few fi rms A big deal… who own shares in the two now control the market. In If it goes ahead, the deal companies must fi rst 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, fi rms 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 Th at benefi ts customers. Th e arrangement would also in Canada. Th ey 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. Th ey 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. Th ese so-called Big Th ree 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. Th at’s from Virgin Mobile or Lucky covers the west. With a a tough call, since analysts are Mobile, for example, you are cross-Canada fi rm, 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 offi cially 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? Level 1 Page 5 National 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 diff er, but prices are win for Canada’s 5G roll-out. What exactly is 5G? It stands for similar. fi ft h-generation mobile phone technology. 5G off ers download speeds ten to twenty times faster than those we have now. 4G technology can “Competitor aft er competitor download an HD movie in about 30 minutes. Th at would take about has been swallowed up by the 25 seconds with 5G. Such higher download speeds could transform the Big Th ree,” says consumer classroom experience. For example, with goggles you could stream 3D, advocate Laura Tribe. “Th e 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 profi ts 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 Th ings.’ Th ese ‘things’ are devices such as equipment So how does Shaw fi t in the mix? sensors, video cameras, streetlights, and home appliances. 5G lets them It is the fourth-largest telecom talk directly to each other. Th e 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. Th e the Big Th ree 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. Th at would possible trade-off ? Regulators Other experts, however, help us compete economically could order the Big Th ree to lease believe the merger is good for with other countries. network access to small fi rms the country. Why? Half of that off er 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, fi nding 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 “Th ese goals will be front this ‘digital divide’ is a true and centre,” said Innovation Th e federal Liberal government disadvantage. Minister François-Philippe is in a tough spot. It has Champagne. J Rogers says it will address this 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? Level 1 Page 6 National Rogers and Shaw – A Proposed Merger of Two Giant Telecoms COMPREHENSION QUESTIONS 1. How do consumers benefi t if many companies compete for their business? Explain.
2. List the 'Big Th ree' 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? Level 1 Page 7 National 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 specifi c details to back up each point.
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B. Aft er 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? Level 1 Page 8 National Rogers and Shaw – A Proposed Merger of Two Giant Telecoms QUESTIONS FOR FURTHER THOUGHT 1. Th e 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 specifi c 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 diff erent 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? Level 1 Page 9 National Rogers and Shaw – A Proposed Merger of Two Giant Telecoms QUESTIONS FOR ONLINE EXPLORATION Note: Th e links below are listed at www.lesplan.com/en/links for easy access. 1. Th e proposed merger of Rogers and Shaw will require the approval of three regulatory groups that monitor industry in Canada before it can be fi nalized. As with any business deal, there are multiple perspectives on whether this deal will be benefi cial 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. Th e use of 5G and the capacity that it creates for communication between multiple devices seems infi nite. Visit the links below to learn more about "the Internet of Th ings" 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 Th ings' can be helpful in our everyday lives.
What questions or concerns do you still have about the 'Internet of Th ings'? Explain.
2020/2021: Issue 7 What in the world? Level 1 Page 10 National Rogers and Shaw – A Proposed Merger of Two Giant Telecoms INFOGRAPHIC
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? Level 1 Page 11 National Rogers and Shaw – A Proposed Merger of Two Giant Telecoms ANALYZING AN INFOGRAPHIC
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 signifi cant 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? Level 1 Page 12 National Rogers and Shaw – A Proposed Merger of Two Giant Telecoms PUTTING 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 off er 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 fi rst 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? Th ere 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 benefi t or more of a drawback for the majority of Canadians? Give reasons to support your response.
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