Sale of Freedom Mobile to Quebecor not enough for competition, says telecom watcher

Rogers Communications' decision to sell Shaw's wireless carrier Freedom Mobile to Quebecor-owned Videotron will just create a "weaker" competitor in the market, one telecom watcher said Monday.

Carleton University professor Dwayne Winseck said it won't be easy for Quebec-based Videotron to expand nationally, making it less of a challenger for Rogers.

Winseck said Videotron, which only operates in Quebec and parts of eastern Ontario, has had national ambitions for a while, but lacks brand recognition and hasn't been able to strike strong deals with other national carriers, despite having fairly deep pockets.

Over the weekend, Rogers said it would sell Freedom to Quebecor for $2.85 billion, as it looks to get its $26 billion takeover of Shaw Communications Inc. over the finish line, arguing that the move would give Canadians "competition and choice."