It’s a bit of a shocker, the Competition Bureau in Ottawa has refused to allow Eastlink to buy Bruce Telecom for 24 million dollars.
In a news release from Ottawa on Friday, the Bureau says Eastlink’s acquisition of Bruce Telecom would have likely resulted in higher prices and fewer choices for the residents of the towns of Port Elgin and Paisley.
Currently, the two companies are only providers of telecommunications services in the towns.
It adds in the absence of a rivalry between the two companies, customers would also have been deprived of the benefits of innovation in their telecommunications services.
As a result, Bragg Communications Inc. or Eastlink and Bruce Telecom have terminated their agreement.
Eastlink currently owns and operates more than 500 cable systems across Canada.
Within Bruce Telecom’s area, Eastlink owns and operates the cable systems in the towns of Port Elgin and Paisley, through which it currently offers telephone, television and broadband internet services in direct competition with Bruce Telecom.
Owned by the Municipality of Kincardine, Bruce Telecom is the incumbent telecommunications company for a large portion of Bruce County.
In operation for more than 100 years, it currently offers phone, television and broadband internet services across its incumbency area, which covers the towns of Kincardine, Tiverton, Port Elgin and Paisley, in addition to their surrounding rural areas.
Kincardine had planned to sell Bruce Telecom to Eastlink in a multi-million dollar deal.
Council was planning a public meeting August 27th about the sale, and some closed door meetings they held about the agreement.
