Rogers Communications (NYSE: RCI) struck a $700 million deal to buy Mountain Cabevision from fellow Canadian MSO Shaw Communications, along with wireless spectrum and interest in cable network TVtropolis.
Toronto-based Rogers will pick up about 40,000 cable subscribers in Hamilton, Ontario, through the cable system acquisition. About 130 Mountain Cablevision employees will also join the company.
Rogers, which also markets wireless phone and Internet service to subscribers, has an option to buy unused spectrum from Shaw that covers 188 million MHz POPs. If the deal is approved by regulators, it could help Rogers meet increased demand for mobile Internet services in Western Canada, the company 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," Rogers CEO Nadir Mohamed said in a prepared statement. "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," he added.
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