Alright! I am a Wind customer and a Shaw customer. As I've watched the telecom 'miseries' over the last number of years it became clearer to me that Wind would need to be taken over by someone with deeper pockets if we were to truly have 4 wireless companies. At the same time, Telus was slowly eating Shaw's lunch in the TV offering because of their robust wireless business. To the point that rumours were starting to hit the street that Rogers might take Shaw out. Purchasing Wind is a strategic move that will allow Shaw to better compete with Telus and put to rest any chance of Rogers buying them.
I look forward to see what interesting bundles Shaw might come up with now.
The Shaw family has voting control of the company, so they won't sell unless they want to, regardless of what the public shareholders want.
Shaw has really had a hard time making up their mind about wireless. First they cancelled the wireless rollout mid-stream in 2011. Then they finalized the sale of all their spectrum to Rogers earlier this year. Now they buy Wind???
How interesting . After seemingly getting out of wireless they are back in . They have a chance to invest and do something interesting such as combining with shaw go wifi and other goodies but we'll have to wait and see if anything actually gets done .
How quickly we forget....
When Shaw got into the cable game here in Ontario and Atlantic years ago, they told everyone they had a 5 year plan.
Then after sitting on their hands for 5 years they packed up everything they could move back west, and and sold the systems off to Rogers.
I see the same old game in play.
The purchase buys back spectrum Shaw previously had and sold to Rogers(I think) and probably at a ridiculously lower price. This whole thing smells really fishy to me. I'm guessing there are tax loopholes that benefit all parties as it has so many hands in it.
Shaw's spectrum sale was a three-way deal between them, Wind, and Rogers. Wind is actually in a better spot than before that deal happened. Rogers basically wanted more GTA spectrum, so that's what they got in the deal. Wind got more for the rest of the country from both Shaw and Rogers.
Many are saying that by Shaw buying Wind an eventual Rogers-Shaw hookup is off the table. I wonder if Shaw and Eastlink would ever consider merging. It would certainly give Shaw a more national presence. The Wind and Eastlink spectrum are adajacent or overlapping. Wonder if there will be any other moves once this Shaw-Wind combination is completed.
2008 - Shaw paid $190 million for wireless spectrum
2011 - Shaw announces it is abandoning their wireless rollout. They spent $180-million on wireless infrastructure, only about $50-million of which can be salvaged for WiFi hotspots. (I haven't checked how much was actually written off.) At the time they said: “For the next ten years we’re going to spend over a billion dollars building this network, but it’s never going to be over. You’re never finished building that network.”
January 15, 2013 - Rogers paid Shaw $50 million for the option to buy spectrum.
June 24, 2015 - Rogers paid $100-million to complete the option to purchase spectrum from Shaw.
This article has an interactive chart showing the spectrum transfers between Shaw, Rogers, Wind and Mobilicity.
I may be naive but i don't think Shaw is doing this deal for Rogers benefit . Seems like a pretty smart play to me .They got Rogers to pay them for spectrum then picked up a wireless carrier with more spectrum and a chance to be a real player in mobile .Whether they can deliver on that promise remains to be seen . Does anyone know if Wind management is creative enough to step up if shaw truly does back them with the resources ?