Rogers and Videotron Partner on LTE Wireless Network

Videotron and Rogers have partnered to bring 4G LTE to even more customers in the province of Québec and the Ottawa region.

Both companies will pool their efforts to quickly build out and operate a shared LTE wireless network for both business and consumer markets, which have been growing steadily with continued demand for mobile devices.

“This agreement will benefit businesses and consumers and is part of Rogers focused, strategic game plan,” said Nadir Mohamed, President and CEO of 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.”

Under the lengthy 20-year agreement, Videotron and Rogers will split the cost of deploying and operating a shared LTE network and use the operational savings to reinvest in their customers and networks. Naturally, Videotron and Rogers will maintain their business independence including product and service portfolios, billing systems and customer data.

Videotron, part of the Quebecor Media family, said it plans to expand its handset line-up to keep up to explosive demand for data services.

“These improvements will directly enhance the competitiveness of Québec businesses and help meet the demand for more powerful mobile services. In this sense, all of Québec and the Ottawa region will benefit from this agreement. The agreement we have reached will enable us and Rogers alike to make more efficient use of our spectrum, and to derive maximum benefit from our investments,” said Robert Dépatie, President and CEO of Quebecor Inc. and CEO of Videotron. “The required capital expenditures will be less than if the two companies would have built out parallel LTE access networks.”

Both companies have also agreed on Videotron’s unused AWS spectrum in the Greater Toronto Area. Subject to regulatory approval, Videotron will have the option to transfer its Toronto spectrum licence to Rogers starting on January 1, 2014 for a price of $180 million. Rogers and Videotron have both decided to provide each other with services for which Rogers will receive $200 million and Videotron $93 million, payable over a period of 10 years.

Discuss this further in our Rogers Wireless Forum.

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