Rogers Communications, one of Canada’s largest wireless and Internet provider, said it will buy Mountain Cablevision and some wireless spectrum licenses from Shaw Communication for about $710 million USD ($700 million in Canadian dollars), reports Reuters.
Shaw will buy the 33.3 percent stake in the TVtropolis General Partnership it does not already own for $59 million Canadian dollars. TVtropolis, a TV channel, is currently jointly owned by Rogers and Shaw.
Rogers said that the acquisition allows it to upgrade networks and uphold its share of the wireless market in Western Canada as data usage “explodes.” In a press release, president and CEO of Rogers Communication Nadir Mohamed said:
“We’re investing in spectrum to ensure our customers continue to enjoy the incredibly fast speeds and throughput they crave, while ensuring our continued network leadership. We’re also strengthening our Cable portfolio by acquiring a valuable cable business which complements our existing Ontario cable system allowing us to deliver even more value for our customers and shareholders.”
Rogers system upgrades and strategic initiatives may help it avoid snafus like September’s widespread service outage on both its cellular and cable home Internet data networks, which the company attributed to “wireline interruptions.”