Canadian Industry Minister François-Philippe Champagne has approved Rogers Communications Inc.鈥檚 $26-billion takeover of rival telecom Shaw Communications Inc., but there are conditions attached and penalties of up to $1 billion if the companies violate them.

Here is a look at the conditions he placed on the sale:

CONDITIONS FOR VIDEOTRON

Champagne鈥檚 approval of the sale depended on Shaw selling its Freedom Mobile wireless business to Quebecor鈥檚 Videotron.

His conditions for the sale dictate that Videotron:

  • Offer plans comparable to those currently available in Quebec
  • Offer plan options that are at least 20 per cent cheaper than those offered by other major players
  • Cannot transfer the Freedom Mobile licences for 10 years
  • Expand its 5G network in Freedom Mobile鈥檚 existing territory within two years
  • Expand service into Manitoba with a Mobile Virtual Network agreement, with similar plans to its Quebec offerings
  • Increase data allotments for Freedom Mobile customers by 10 per cent as it brings down prices
  • The company faces a maximum fine of $200 million if it violates any of the conditions.

CONDITIONS FOR ROGERS

Champagne said Rogers must make investments to improve connectivity over the next five years. Those investments include:

  • Creating 3,000 jobs in Western Canada and maintaining them for at least 10 years
  • Establishing a Western headquarters in Calgary that must remain open for 10 years
  • $1 billion to expand broadband internet access and 5G mobile service where it isn鈥檛 currently available
  • $2.5 billion on 鈥渆nhancing鈥� its 5G network in Western Canada
  • $3 billion on other network service expansion projects
  • Expanding its low-cost broadband internet plans
  • Setting up a low-cost mobile plan for low-income Canadians
  • Rogers could be fined up to $1 billion if it violates any of the conditions.

Champagne said Friday that Videotron and Rogers also entered into commercial network-access agreements to help Videotron compete more effectively as it expands across Canada.

He promised that the government would 鈥渦se every means in our power鈥� to enforce the terms of the sale if the companies don鈥檛 live up to the agreement.