Rogers and Videotron to build-out expanded LTE network in Québec and Ottawa
Shared network will bring benefits of LTE to more consumers and businesses by
Expanded LTE coverage in rural regions
MONTRÉAL, May 29, 2013 /CNW/ - Today, Videotron and Rogers announced an
agreement to bring LTE to even more customers in the province of Québec 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 Québec 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
"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 Dépatie, 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 Dépatie. "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 Québec, helping to reduce the
urban-rural digital divide.
"These improvements will directly enhance the competitiveness of Québec
businesses and help meet the demand for more powerful mobile services. In this
sense, all of Québec 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 Dépatie. "The required capital expenditures will be
less than if the two companies would have built out parallel LTE access
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
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.
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.
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 March31, 2013, Videotron was serving
1,849,200 cable television customers, including 1,500,300 subscribers Digital
TV. Videotron is also the Québec leader in high-speed Internet access, with
1,397,300 subscribers to its cable service as of March31, 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
Québec households and organizations. For the eighth consecutive year,
Videotron was ranked as Québec's most respected telecommunications company by
Les Affaires magazine, based on a Léger Marketing survey.
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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.
Investors: Bruce Mann VP, Investor Relations, Rogers 416-935-3532
Jean-François Pruneau Senior VP and CFO, Quebecor Media Inc 514-380-4144
Media: Patricia Trott Director, Public Affairs, Rogers 416-935-7359
Martin Tremblay Vice President, Public Affairs, Quebecor Media Inc.
SOURCE: Rogers Communications Inc.
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