Municipality wants Competition Bureau to correct release quashing sale of Bruce Telecom
By Liz Dadson


Kincardine council

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The Municipality of Kincardine is seeking a correction from the Competition Bureau after a news release early Friday stated that the bureau in Ottawa has refused to allow Eastlink (Bragg Communications) to purchase Bruce Telecom for $26.5-million.

The sale was announced by Kincardine council Jan. 22, and following a closed-door meeting investigation report, issued by Amberley Gavel Inc. in June, council was planning to hold a public meeting Aug. 27 about the sale.

Friday afternoon, Kincardine released a statement, saying it had learned of the bureau's release which was issued without notice to, or consultation with, the municipality, and contains inaccuracies.

"Contrary to the press release, the parties have not terminated their agreement," says the municipality. "As well, it is not true that the Municipality of Kincardine has decided to abandon the proposed transaction. Council for the municipality has not received, nor had an opportunity to consider, the subject matter of the bureau's press release.

"The Municipality of Kincardine is seeking a correction from the bureau."

In its news release, the Competition Bureau said that Eastlink's acquisition of Bruce Telecom would have likely resulted in higher prices and fewer choices for the residents of the Town of Port Elgin and the Village of Paisley.

Currently, the two companies are the only providers of telecommunications services in those two areas.

The bureau adds that 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," states the bureau."


Liz Dadson

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Friday, August 15, 2014