Canadian provider Rogers Communications announced today that it has signed agreements with Shaw Communications to secure an option to purchase Shaw's AWS spectrum holdings in 2014, and to acquire Shaw's cable system in Hamilton, Ontario, Mountain Cablevision Limited.
According to a press release, Shaw will also acquire Rogers' one-third interest in TVtropolis and will enter into negotiations with Rogers for the provision of "certain services in Western Canada."
Rogers net cash investment is expected to total approximately $700 million once all aspects of the transactions are completed.
"The agreements will benefit businesses and consumers across the country and fit squarely within our focused, strategic game plan," said Nadir Mohamed, president and CEO of Roger, said in a statement that his company is investing in spectrum to ensure its customers "continue to enjoy the incredibly fast speeds and throughput they crave, while ensuring our continued network leadership."
"We're also strengthening our Cable portfolio by acquiring a valuable cable business which complements our existing Ontario cable system allowing us to deliver even more value for our customers and shareholders," Mohamed said.
Shaw's AWS spectrum holdings cover 188 million MHz POPs including 20 MHz across B.C., Alberta and Manitoba and 10 MHz in select B.C., Alberta, Saskatchewan and Northern Ontario markets.
Under the agreement, Rogers has acquired an option to purchase this spectrum and the option may be exercised only following receipt of regulatory approval. If approved, the spectrum purchase would likely be completed in late 2014.