Quebecor Profits as it Sells GTA AWS-1 Spectrum to Rogers for $184 Million [u]
Quebecor, parent company of Videotron in Quebec, has sold its Toronto-area AWS-1 spectrum license to Rogers for $184 million. Does this axe any future plans for Videotron to expand nationally and outside Quebec? The company already reiterated it had no plans to build wireless to the rest of Canada in 2015.
Government approves Quebecor sale of spectrum to Rogers for $184 million, effectively ending the idea of Videotron going national. https://t.co/rwBkxJ8bEY
— Steve Faguy (@fagstein) June 9, 2017
Videotron held the transfer option to Rogers, after both companies collaborated to expand LTE networks in 2013.
Selling at nearly $184 million means Quebecor has made a hefty profit, compared to its original purchase price.
TELUS SVP of Federal Government and Regulatory Affairs, Ted Woodhead, tweeted “Spectrum trafficking is a profitable business! $88M windfall and round it up to $100M to cover the value of the option. #badpublicpolicy”
Regulatory authorities approved the deal this morning (Updated). Videotron says this sale will help its ongoing 4G network expansion plans in Quebec and Eastern Ontario, including future 5G network deployment.
David Watt, Rogers senior vice-president, regulatory, told CBC News. “We’ll be putting this spectrum to good use. This means more wireless capacity so our customers can stream more and more mobile video and connect with friends and family.” He added “This is great news for consumers.”
Videotron paid about $96 million for the AWS-1 spectrum in a 2008 auction.
Update: the deal was approved earlier this morning:
The overall Transfer of Licence from Vidéotron to Rogers is approved.