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Videotron and Rogers partner for LTE network expansion in Qubec and Ottawa
[June 11, 2013]

Videotron and Rogers partner for LTE network expansion in Qubec and Ottawa


Jun 11, 2013 (Datamonitor via COMTEX) -- Videotron, a provider of multimedia development, and internet access, cable telephone and mobile telephone services, and Rogers Communications, a provider of wireless voice and data communications services, have signed an agreement to expand LTE network coverage in the province of Qubec and the Ottawa region.

"This agreement will benefit businesses and consumers and is part of Rogers focused, strategic game plan," said Nadir Mohamed, President and CEO, 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." "This is excellent news for our customers and our shareholders. This agreement will enable us to go farther and to do it faster and is indicative of our determination to anticipate our customers' needs and to maintain the close relationship we have built with them." said Robert Dpatie, President and CEO of Quebecor Inc. and CEO of Videotron.

Under this 20-year agreement, Videotron and Rogers will share the cost of deploying and operating a shared LTE network. This will deliver capital and operating savings, allowing both companies to reinvest in their customers and networks. Videotron and Rogers will maintain their business independence, including their product and service portfolios, billing systems and customer data. The network sharing agreement will leverage existing infrastructure in Quebec's urban and rural centres. For its part, Videotron will also be able to expand its handset line-up, Rogers said.


"These improvements will directly enhance the competitiveness of Qubec businesses and help meet the demand for more powerful mobile services. In this sense, all of Qubec 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 Dpatie. "The required capital expenditures will be less than if the two companies would have built out parallel LTE access networks." 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 C$180 million.

"Data usage is exploding and customers want to continue to enjoy the fastest possible speeds and throughput. Our plan is to put this unused spectrum to use to meet this demand, especially in a dense urban area, like Toronto," said Mohamed.

As part of the overall agreement, Rogers and Videotron will each provide each other with services for which Rogers will receive C$200 million and Videotron C$93 million, payable over a period of 10 years, added Rogers.

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