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Rogers and Videotron to jointly build LTE network in Québec and Ottawa

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Two of Canada's mobile networks, Videotron and Rogers have announced a deal that will see them jointly deploy LTE coverage in the province of Qu bec and the Ottawa region.

Under the 20-year agreement, the two companies will pool their efforts to build out and operate a shared LTE wireless network. Videotron and Rogers will maintain their business independence, including their product and service portfolios, billing systems and customer data.

The network sharing agreement will also leverage existing infrastructure in many of Quebec's urban and rural centres.

For its part, Videotron will also be able to expand its handset line-up.

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.

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.

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.

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Tags: videotron  rogers wireless  lte  Canada