(Bloomberg) -- Rogers Communications Inc. could face a total penalty of C$1 billion ($739 million) over the next decade if it doesn’t meet government conditions underpinning its takeover of Shaw Communications Inc.

Canadian Industry Minister Francois-Philippe Champagne published the agreement Friday, calling it “an unprecedented and legally enforceable set of commitments.”

The document says Rogers will be fined as much as C$100 million per year if the industry minister concludes “any material element” of any of the commitments made by the company are not met. The exception would be a force majeure event, such as floods, earthquakes, labor disruptions or an epidemic.

Rogers will be released from these potential liabilities on the 10th anniversary of the closing date of the deal.

Rogers is also required to: 

  • Base its western Canada headquarters in Calgary, Alberta for at least 10 years after the closing date
  • Create 3,000 new jobs in western Canada in the first five years and maintain them until at least 10 years after the closing date
  • Spend C$2.5 billion enhancing and expanding 5G coverage in western Canada in the first five years, and at least C$3 billion in additional network, services and technology investments
  • Spend C$1 billion to connect rural, remote and Indigenous communities across the western provinces of British Columbia, Alberta, Saskatchewan and Manitoba
  • Report its progress to the government and the public every year, starting with the first anniversary date of the close

Champagne also released an agreement with Quebecor Media Inc. and Videotron Ltd., which is acquiring Freedom Mobile Inc. as part of the Rogers deal.

That agreement comes with a C$200 million total penalty, or as much as C$25 million in any given year starting in the third year after the deal closes.

Freedom Mobile is required to:

  • Offer plans at least 20% cheaper than those offered to consumers by existing providers in the  B.C., Alberta and Ontario markets
  • Maintain prices for existing customers for five years, and offer them a 10% increase in their local data limit at no additional cost
  • Spend more than C$150 million to upgrade its infrastructure so that 90% of its current and future customers have access to the 5G network

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