TORONTO - Rogers Communications Inc. (TSX:RCI.B) has signed agreements worth about $700 million to buy unused wireless spectrum from Shaw Communications Inc. as well as Shaw's Ontario-based Mountain Cablevision Ltd.
Rogers Communications says the agreement with Shaw (TSX:SJR.B) is to secure an option to purchase the Calgary company's AWS spectrum holdings in 2014, and to acquire Shaw's cable system in Hamilton, Ont.
Shaw, in turn, will acquire Rogers' one-third interest in TVtropolis and will enter into negotiations with Rogers for the provision of certain services in Western Canada.
Rogers says its net cash investment is expected to total about $700 million once the transactions are completed.
Rogers CEO Nadir Mohamed says the wireless spectrum, radio waves over which wireless networks operate, is mainly based in Western Canada and will meet data usage demands by its customers.
The purchase of Shaw's wireless spectrum will need approval by Industry Canada and the Federal Competition Bureau. Rogers is Canada's largest wireless provider with more than nine million customers and Shaw's Mountain Cablevision also will add to Rogers' cable TV holdings.