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A woman holds phones displaying Rogers and Shaw logos.
Hearings into the proposed merger of Rogers and Shaw will move into the next phase after Thursday's session. Canada's competition bureau is objecting to the deal, arguing it will eliminate competition in telco sector. Photo by Adrian Wyld /The Canadian Press

An expert witness said Wednesday at a hearing that Quebecor will replace Shaw Communications if it is acquired by Rogers.

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Mark Israel, a U.S.-based expert in competition economics, was hired by Rogers to testify.

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The Competition Bureau claims that the transaction will result in less competition if Shaw is wiped from the market.

Israel said that with the combination of spectrum, towers and a near-national presence, Vidotron is stronger than Shaw.

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The transaction between Rogers and Shaw will leave four competitors in the wireless market in relevant provinces, Israel said.

The merger will result in a realignment of wireline and wireless assets with no reduction in the number of competitors.

  1. Shaw Communications Inc.'s logos on display at the company's annual meeting in Calgary.
  2. The headquarters of Rogers Communications Inc. in Toronto.
  3. The Shaw Communications Inc. office in Calgary.

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On Wednesday, the tribunal heard from Roger Ware, an economics professor at Queen's University, who argued that wireless services don't qualify as a necessary good.

Some people own a television while others don't. Ware was hired as an expert by Rogers.

Ware testified that regulated low-cost plans will continue to be an option after the merger, and that no analogous group of poor and needy consumers would not have alternative suppliers of wireless services.

The evidentiary portion of the hearing will end on Thursday.

Dpaglinawan@postmedia.com and denise.pglnwn are email addresses.

  1. A trailer for extra space outside the ER at the Alberta Children's Hospital.
  2. The Bank of Canada building in Ottawa.
  3. A 'for sale' sign displayed outside a home in Toronto.
  4. HSBC Holdings PLC signage outside a bank branch in the financial district of Toronto.
  5. A Petro-Canada gas station in Alberta.