Today, Videotron and Rogers announced an agreement to bring LTE to
even more customers in the province of Quebec and the Ottawa
region. Under the 20-year agreement, the two companies will pool
their efforts to quickly build out and operate a shared LTE
wireless network, the most advanced wireless technology in the
world. This network will deliver an optimal user experience for
consumers and businesses in both key markets.
This announcement builds on Rogers extensive LTE footprint
across Canada, including Montreal, Ottawa and Quebec City. The
fast-paced rollout of LTE infrastructure will position the two
companies to meet the steadily growing needs of consumers and
businesses, ensuring many more can enjoy incredibly fast speeds,
throughput and take advantage of the latest and greatest LTE
enabled devices.
"This agreement will benefit businesses and consumers and is
part of Rogers focused, strategic game plan," said Nadir Mohamed,
President and Chief Executive Officer, 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 Depatie, President and CEO of Quebecor Inc. and
CEO of Videotron.
Under this 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.
Benefits for consumers and businesses
The network sharing agreement will leverage existing
infrastructure in many of Quebec's urban and rural centres. The
fast build-out of the LTE mobile network will further improve the
quality of the customer experience and enable both carriers to
better anticipate and respond to their customers' needs.
For its part, Videotron will also be able to expand its handset
line-up. "It is always advantageous to have several options in a
fast-changing wireless market," added Robert Depatie. "This is
another benefit that the agreement will bring our customers."
Better rural coverage and competitive advantage for business
In addition to increasing network performance, this agreement
will expand mobile coverage more quickly in rural Quebec, helping
to reduce the urban-rural digital divide.
"These improvements will directly enhance the competitiveness of
Quebec businesses and help meet the demand for more powerful mobile
services. In this sense, all of Quebec 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 Depatie. "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
$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 $200
million and Videotron $93 million, payable over a period of 10
years.
About Rogers
Rogers Communications is a diversified Canadian communications
and media company. We are engaged in wireless voice and data
communications services through Wireless, Canada's largest wireless
provider. Through Cable, we are one of Canada's leading providers
of cable television services as well as high-speed Internet access
and telephony services to consumers and businesses. Through Media,
we are engaged in radio and television broadcasting, televised
shopping, sports entertainment, and magazines and trade
publications. We are publicly traded on the Toronto Stock Exchange
(TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE:
RCI). For further information about the Rogers group of companies,
please visit www.rogers.com.
About Videotron
Videotron (www.videotron.com), a wholly owned subsidiary of
Quebecor Media Inc., is an integrated communications company
engaged in cable television, interactive multimedia development,
and Internet access, cable telephone and mobile telephone services.
Videotron is a leader in new technologies with its illico
interactive television service and its broadband network, which
supports high-speed cable Internet access, analog and digital cable
television, and other services. As of March 31, 2013, Videotron was
serving 1,849,200 cable television customers, including 1,500,300
subscribers Digital TV. Videotron is also the Quebec leader in
high-speed Internet access, with 1,397,300 subscribers to its cable
service as of March 31, 2013. As of the same date, Videotron had
420,900 subscriber connections to its mobile telephone service and
was providing cable telephone service to 1,274,000 Quebec
households and organizations. For the eighth consecutive year,
Videotron was ranked as Quebec's most respected telecommunications
company by Les Affaires magazine, based on a Leger Marketing
survey.
Follow us on the Web: www.facebook.com/videotron
Follow us on Twitter: www.twitter.com/videotron
Caution Regarding Forward-Looking Statements, Risks and
Assumptions:
This release includes "forward-looking information" within the
meaning of applicable securities laws and assumptions concerning
the acquisition of wireless spectrum as detailed above. We caution
that all forward-looking information is inherently subject to
change and uncertainty and that actual results may differ
materially from those expressed or implied by the forward-looking
information. A number of risks, uncertainties and other factors
could cause actual results and events to differ materially from
those expressed or implied in the forward-looking information or
could cause our current objectives, strategies and intentions to
change, including but not limited to various regulatory approvals.
Many of these factors are beyond our control and current
expectation or knowledge. Should one or more of these risks,
uncertainties or other factors materialize, our objectives,
strategies or intentions change, or any other factors or
assumptions underlying the forward-looking information prove
incorrect, our actual results and our plans could vary
significantly from what we currently foresee. Accordingly, we warn
investors to exercise caution when considering statements
containing forward-looking information and that it would be
unreasonable to rely on such statements as creating legal rights
regarding our future results or plans. We are under no obligation
(and we expressly disclaim any such obligation) to update or alter
any statements containing forward-looking information, the factors
or assumptions underlying them, whether as a result of new
information, future events or otherwise, except as required by law.
All of the forward-looking information in this earnings release is
qualified by the cautionary statements herein.
Contacts: Investors: Bruce Mann VP, Investor Relations, Rogers
416-935-3532bruce.mann@rci.rogers.com Jean-Francois Pruneau Senior
VP and CFO, Quebecor Media Inc 514-380-4144jfp@quebecor.com Media:
Patricia Trott Director, Public Affairs, Rogers
416-935-7359patricia.trott@rci.rogers.com Martin Tremblay Vice
President, Public Affairs, Quebecor Media Inc.
514-380-1985martin.tremblay@quebecor.com
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