January 14, 2013 7:09pm
While most Canadian carriers are prepping for the big 700MHz spectrum auction this year, Rogers is tying up some loose ends that will potentially secure some additional coverage. In a press release tonight Shaw announced that they’ve signed an agreement that would give Rogers first right to “to secure an Option to purchase” their unused AWS spectrum licenses in 2014.
The release pegged the “purchase price of the option” at $50 million, but in the end the deal needs the approval of the Competition Bureau and Industry Canada. Rogers notes that this acquisition would maintain “its network leadership position” and “ensure our customers continue to enjoy the incredibly fast speeds and throughput they crave.” According to the release, “Shaw’s AWS spectrum holdings cover 188 million MHz POPs including 20 MHz across B.C., Alberta and Manitoba and 10 MHz in select B.C., Alberta, Saskatchewan and Northern Ontario markets.”
There were other assets bundled into this agreement. The total package is worth approximately $700 million and includes Hamilton-based Mountain Cablevision, plus would also see Shaw pay Rogers $59 million for a 33% stake in TVtropolis.
Shaw stated that the proceeds will go towards “various strategic capital investments in its core business,” including building out their Wi-Fi network in Western Canada.