Q&A with Rogers CEO Tony Staffieri on Shaw takeover, jobs, West being 'fastest growing markets'

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It’s been 16 months since Rogers Communications completed its blockbuster $26-billion acquisition of Calgary-based Shaw Communications — and more than three years since the agreement was first announced.

Tony Staffieri, who took over as Rogers CEO in 2022, sat down with Herald columnist Chris Varcoe at the company’s Barlow campus this week and discussed the integration of Shaw, and its promises to invest and create jobs in Western Canada.

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The following is a transcript of their conversation, edited for clarity and length.

Q: How is the integration going since the acquisition of Shaw was approved?

A: Just terrific . . . On closing, we were incredibly impressed with the asset. As we look to the cable plan, and that was really what it was about — the cable business . . . the internet infrastructure was just (in) A-plus shape.

And then the people as well, with a two-year transition period waiting for approval, we were a little worried that some of the employees were going to be fatigued, etc., but we got the opposite. We got a team that’s raring to go.

If we look at the actual integration, we had planned most of it to be done over two years. We are tracking well ahead. Generally, I would say 50 to 75 per cent ahead of schedule . . . The West — Alberta, B.C. — are now our fastest-growing markets, and so the overriding compass for us in the integration was, let’s focus on the customer.

Q: At the time of the announcement, I remember speaking to your predecessor and a number of commitments were made. One was progress in terms of investment in Western Canada, specifically in 5G. The plan was to invest $2.5 billion. Where does that stand?

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A: Trucking ahead. We have a leadership position in 5G wireless. And if you were to look at the investments we made over the last two years you’ll see a couple of things.

In terms of wireless coverage over 24 months — 40 new communities that weren’t previously covered by 5G wireless . . . In over two years, we now pass an additional 80,000 homes with our home services through wireline.

Q: Another commitment was to create a $1-billion fund dedicated to rural and Indigenous (community) connections. How far has that gone?

A: That’s a commitment over five years. I would say it’s early days, in the sense of many of those needed approvals for some of the infrastructure and civil work. And so we’re pacing on plan again, slightly ahead of plan.

Q: Where are you seeing growth in Alberta?

A: We are getting a disproportionate (number) of the new to Canada (customers). We are getting a disproportionate (number) of customers that want to bundle . . . we’re having good traction on new business.

Q: Another (pledge) was establishing the National Centre of Technology and Engineering Excellence in Calgary. The commitment was 500 new engineering jobs. What is the status of that centre?

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A: That was termed THINKLab . . . It’s early days on that, but we’ve actually thought broader about things we’re doing in Alberta, in terms of innovation labs.

In addition to THINKLab, we’ve created CableLabs North (based in Calgary) and this is one we’re really excited about, because it’s going to have global scale in terms of its implication.

And so in partnering with CableLabs out of the U.S., which is an international organization that’s just serious about connectivity, they bring the scale to focus on convergence . . . Everyone is really focused on how do we develop technology and applications so it’s seamless, as you move from wireless to home internet, as an example. So, it’s the whole convergence in that work that’s going to be based out of this facility, here in Barlow.

Q: How many people would be working right now on THINKLab? How many are in CableLabs North?

A: I won’t quote the actual number, but . . . I would say it’s early days in the 500 of incremental new jobs. What we have done is taken many of our IT and network specialists, and redirected some of the work they’re doing to get initiatives going on THINKLab. And as that gets going, then we’ll see new incremental hires.

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Q: What do you envision for THINKLab? At the time, (the centre) was described as it was going to be this catch-all for R&D, cutting-edge research for the company.

A: That’s been part of, if I’m frank with you, a bit of the — not slowdown — but we wanted it not to be R&D coming up with ideas that are looking for a problem. We are taking the time to sort of say: What are the issues that businesses, government and consumers have that are pervasive in nature . . . We want something that’s going to have practical applications for the customer.

Q: Rogers promised to create a Western head office. It was going to remain at Shaw Court, and it was going to have a president of Western operations. Where does that stand?

A: We are committed to our base of operations here at Barlow, and Shaw Court is rebranded Rogers Court, and we operate out of both of them . . . In terms of specifically about a Western president . . . we thought the best way to do it was to make sure that we had someone who had national accountability that tied to a customer outcome.

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If you’re in charge of cable, you’re in charge of cable for Canada, as opposed to just the specific geographic approach . . . Rather than one individual, we actually have here in Calgary — and I’ll include Edmonton — about 100 senior leaders with national accountabilities.

Q: At the time, the commitment was that Rogers was going to create up to 3,000 net new jobs across Alberta, B.C., Manitoba and Saskatchewan, including 1,800 in Alberta. Where do you stand on 3,000 net new jobs in Western Canada?

A: That was over five years and the first 24 months into it, we’re already in excess of 800 new jobs in Alberta relative to the 1,800 . . . That includes the repatriation back to Canada, and in particular Western Canada, of call centre jobs that Shaw had offshored. And so we brought those back and those are in Alberta, B.C., and a little bit in Manitoba.

Q: Those 800 jobs, are those net new jobs, or are those just new jobs?

A: Those are new jobs.

Q: The commitment in the original news release (in 2021) talked about 3,000 net new jobs. That didn’t end up in the commitment that was made to the (government bodies). Was there a change?

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A: We clarified what our plans were with the government bodies of where we were going to grow. And we were very transparent at the outset to sort of say there are going to be areas of duplication.

And so those overlapping roles and jobs were going to go away, but we were going to create new opportunities. And so, we were very direct and clear on 3,000 being new jobs, not necessarily net jobs.

Q: So how many jobs are in Alberta right now? How many would be in Calgary?

A: In Alberta, we have about 3,000 employees . . . Here in Calgary would be about 60 to 70 per cent of that. I give you a loose number only because we have quite a few going between Edmonton and Calgary, and Calgary to Vancouver.

Q: Obviously, in any kind of transaction with two organizations, there’s going to be overlap . . . What would you say to (those who wonder) has this actually worked out for Western Canada as it was promised by Rogers three years ago?

A: I would say it this way, just because of the way you asked the question. One is the commitment I made, this senior management team made, and this organization made, we’re living up to them . . . I can’t speak to what someone else would have said. And we are living by those commitments, and I’m proud of the fact that we’re actually exceeding on those commitments.

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And the second thing is the broader context of, has this been somehow net negative? Quite the opposite. When I talk to customers, they just love choice, and we’re bringing choice. We’re bringing prices down . . . If you were to look at our contribution to GDP, just in the last 12 months, $2.4 billion . . . It’s clear that this has been a positive for the province.

Q: What will the next year bring?

A: Expect us to continue to improve the customer experience . . . So (new) products, is one. Two, continuing to make the customer experience seamless in Rogers Together with Shaw . . . And then the last one is continued expansion of our network . . . We’re quite excited about the next wave of network innovations.

cvarcoe@postmedia.com

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