Rogers announce sharing deal with MTS

by Andrew Roach on June 17, 2013

With the government looking to limit the amount of spectrum that each wireless provider can own, many leading companies are now looking to create sharing agreements to maintain the strength across the country.

Rogers has been one firm to do just as the carrier recently revealed a new licensing agreement with regional carrier MTS which will see the two firms create and manage their own LTE network in Manitoba.

The deal looks to act as a competitive reaction to a similar deal struck between Bell and Telus who announced their own resources share in the last few days.

It’s not the first time that Rogers have entered into a license sharing with the Toronto based firm already having a similar arrangement with Videotron in Quebec at the end of May.

By striking a deal with MTS, Rogers has looked to ensure that they still maintain a strong grasp on the telecom market in Manitoba.

While Rogers themselves have 32% of the overall market in the province, MTS is still by far the most popular carrier controlling 53% of the entire wireless space.

The announcement of the new set-up builds on the link-up between Rogers and MTS who initially collaborated with each other to create a HSPA+ network in Manitoba back in 2009.

Both carriers have come out believing that the joint venture is the most cost-effective approach to establish a strong LTE network within the province. This was underlined by MTS; head of Manitoba operations Kevin Shepherd who told the Winnipeg Free Press that “we are both getting some cost savings or cost avoidance so that it’s not as big an investment if we did everything on our own.”

Rogers’ joint venture with MTS comes as a way to counteract the national union between Bell and Telus which lets the two wireless providers share their resources across the country.

It has meant that Rogers have sought to strike their own partnership with leading regional carriers to try and ensure that they are left behind by their rivals.

Alongside the MTS deal, Rogers recently concluded a deal with Videotron, the wireless arm of Quebecor, which would see the two firms create a LTE network in Quebec in a 10 year deal worth $107m.

As the need to dominate each regional market grows far more competitive, it’s likely that many of the leading wireless companies will look to band together to ensure that no-one firm can get an advantage anywhere in the country.

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Written by: Andrew Roach www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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