Videotron sells unused Toronto-area wireless spectrum to Rogers for $184M
Videotron paid just over $96M for the wireless spectrum in a 2008 auction
Quebecor's Videotron unit is selling unused wireless spectrum in the Toronto area that it bought almost a decade ago to Rogers Communications for about $184 million.
The Montreal-based cable and telecommunications company acquired the spectrum in question in a 2008 auction, when it paid just over $96 million for the rights to use that band of spectrum in the Greater Toronto Area.
But Videotron never ended up building a wireless service in the Toronto area, so they have no use for it, which is why they have sold the spectrum to Rogers.
"This is great news for consumers," said David Watt, Rogers senior vice-president, regulatory. "We'll be putting this spectrum to good use. This means more wireless capacity so our customers can stream more and more mobile video and connect with friends and family."
Videotron will use the proceeds to beef up its network in Eastern Ontario and Quebec, instead.
The two companies agreed to work together on building their respective LTE networks back in 2013, when Videotron first revealed it had the option of selling its unused AWS-1 spectrum in the GTA to Rogers. Friday's news confirms that Videotron has exercised that option.
The deal has regulatory approval, and is expected to close within days