Rogers wins 700 MHz auction

Rogers Communications confirmed it has secured twenty year licenses for two 12 MHz blocks of contiguous, paired lower 700 MHz band spectrum in Canada’s major geographic markets.

“We went into this auction with our customers’ needs front and centre. We believe they want the ultimate video experience and this spectrum will allow us to deliver just that. Not all 700 MHz spectrum in the auction was the same; we secured the beachfront property we wanted. You either want your customers to have the best for the next 20 years or you don’t. This was a clear strategy for the long-term and our customers won,” said Guy Laurence, president and chief executive officer, Rogers .

The 700 MHz spectrum Rogers has acquired benefits all customers whether they live in cities, towns or rural areas. The spectrum will allow Rogers to deliver the ultimate video experience and it will carry wireless signals across longer distances. It will also benefit enterprise customers with faster mobile broadband compared to existing LTE coverage.

700 MHz spectrum has the added advantage of providing better in-building reception in densely populated cities, allowing customers to enjoy the speed and consistency of LTE inside buildings.

Rogers’ new 700 MHz spectrum covers 99.7 percent of the Canadian population. Its two blocks of contiguous, paired spectrum are located in the key rural and urban locations across Canada. Specifically, Rogers has acquired the A and B 12 MHz blocks, in Southern Ontario, Eastern Ontario, Southern Quebec, Eastern Quebec, British Columbia, Alberta, Newfoundland, Nova Scotia and New Brunswick.

Rogers has also acquired 12 MHz of C block spectrum in Northern Quebec, Northern Ontario, Manitoba and Saskatchewan.

The Rogers cash investment will total C$3.29 billion which is in line with recent spectrum transactions in the United States. The price range for prime 700 MHz spectrum in major United States markets has been in excess of US$4 per MHz/POP.

In the 2008 United States 700 MHz auction, the top 25 markets sold for US$4.50. By comparison, Rogers has paid C$4.32 per MHz/POP for the major markets across Canada securing two blocks of paired spectrum with license terms that are 33 percent longer than comparable 700MHz licenses in the United States.

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