It took four years but Shaw Communications finally recognized it needed to be capable to offer cellular service to stay in touch with Telus.
Calgary based Shaw, said late Wednesday it has put in a proposal to buy the parent organization of startup Wind Mobile for $1.6 billion if the federal government consents.
The offer arrives just a short time following Wind's 6th birthday. One advantage of the offer is it could make it simpler - and possibly speedier - for Wind to pay to update the network to LTE speeds in order that it may match Bell, Rogers and Telus.
Shaw, a Western cable tv business, had plans in 2008 to become a cell carrier, paying $189 million in a selection auction that year AWS frequencies mostly in British Columbia as well as Alberta. Yet 3 years after, studying the thousands Wind and Quebecor/Videotron were spending to develop networks on their own decided to invest in Wi-Fi hot spots in major Western metropolitan areas instead as a lure for their cable tv customers.
The process apparently didn't stop Telus from doing inroads in to Shaw's area. shaw promotions
Therefore buying Wind - assuming authorization from the Trudeau authorities - obtains Shaw an instant network with about 940,000 customers.
"The worldwide telecommunication situation is quickly developing to 'mobile-first' merchandise offerings as consumers need ubiquitous online connectivity from the providers," CEO Brad Shaw explained in a statement. "The acquisition of Wind provides Shaw with one unique platform in the wireless field which will let us provide a converged network alternative to the clients which leverages our entire portfolio of best-in-class telecommunication services, which includes fibre, cable, WiFi, and now wireless. This deal represents a life changing action in the story of Shaw and we're pumped up about the future development prospects in mobile phones. The progress will be accelerated by mixing Shaw's present customer associations, trustworthy brand and wireline as well as WiFi infrastructure with Wind's remarkable asset base, like its existing spectrum position and mobile system."
With backing from Shaw, Wind could possibly attract more business customers. Wind CEO Alek Krstajic will stay with the organization. The deal is predicted to seal in the third quarter of next year.
Within a note to investors Canaccord Genuity notices the agreement may help Shaw's bottom line since wireless is a growth field - 63 percent of Shaw's revenue base (legacy cable/satellite television, home phone, and press) are in decline. "Moreover," the statement adds, "we think that wireless reveals synergistic possibilities for combining and cross-selling" - even though the statement adds that bundled product sales are not huge at additional carriers.