Shared network will bring benefits of LTE to more consumers and businesses by 2014 and expanded LTE coverage in rural regions.
Under this 20-year agreement, Videotron and Rogers will share the cost of deploying and operating a shared LTE network. Videotron and Rogers will maintain their business independence, including their product and service portfolios, billing systems and customer data.
As part of the overall agreement, Rogers and Videotron will each provide each other with services for which Rogers will receive $200 million and Videotron $93 million, payable over a period of 10 years.
Videotron will also be able to expand its handset line-up.
In addition to the network sharing agreement, Videotron and Rogers have also come to an agreement regarding Videotron's unused AWS spectrum in the Greater Toronto Area. Videotron will have the option to transfer its Toronto spectrum licence to Rogers, subject to regulatory approvals, beginning January 1, 2014 for a price of $180 million.
That is something I've long believed the carriers should be doing, especially in lower density areas. It would have been very helpful for Mobilicity, Wind, Eastlink and other AWS carriers to have done that. Perhaps Mobilicity wouldn't be in it current financial situation if it had shared networks with others.
Quebecor announced today the sale of Videotron's Advanced Wireless Services (AWS-1) spectrum licence in the Greater Toronto region to Rogers Communications Canada Inc. for approximately $184 million, pursuant to the transfer option held by Videotron since 2013.
Videotron moves forward with its network investment program
This transaction will notably assist in funding Videotron's ongoing network investment plans in Quebec and Eastern Ontario. These plans include an aggressive 4G network expansion and densification, anticipated 5G network deployment and upgrades to the company's Internet Protocol (IP) wireline network. These investments will contribute to further enhance competition in wireless and wireline services in Quebec and Eastern Ontario.