Rogers and Videotron Sign Agreement to Bring LTE to Quebec, Ottawa Region
Rogers announced last evening it has agreed to a 20 year term with Videotron to expand LTE to the province of Quebec and the Ottawa region. The partnership means both companies will pool their financial resources to build a shared wireless LTE network:
“This agreement will benefit businesses and consumers and is part of Rogers focused, strategic game plan,” said Nadir Mohamed, President and Chief Executive Officer, Rogers Communications Inc. “This network and spectrum sharing agreement, combined with the expansion of our LTE footprint, will allow even more consumers to experience the superior connectivity and incredibly fast speeds that LTE delivers.”
Robert Dépatie, President and CEO of Quebecor Inc. and CEO of Videotron says this agreement will allow for better rural coverage in Quebec.
Another agreement between both companies has Videotron selling its unused AWS spectrum in the Greater Toronto Area to Rogers for $180 million on January 1, 2014, but the deal would be subject to regulatory approval. Rogers says the huge demand for data by its customers means this unused spectrum could be put to use to meet demand.
The overall terms also state both companies will provide each other with services; Rogers will receive $200 million and Videotron $93 million, payable over the course of a decade.
Looks like Rogers seeks to add more spectrum to its portfolio, but of course it will come down to regulatory approval by the CRTC. The company earlier this year announced plans to acquire unused AWS spectrum from Shaw spread across western markets. TELUS and Bell are other carriers that have collaborated in building networks, as their 4G LTE networks are shared as well.