It required four years but Shaw Communications at last understood it had to be in a position to offer mobile support to keep up with Telus.

Calgary based Shaw, explained late Wednesday it has placed in an offer to acquire the parent organization of startup Wind Mobile for $1.6 billion in the event the government agrees.

The offer arrives only days following Wind's 6th birthday. One benefit of the offer is that it is likely to make it easier - and perhaps quicker - for Wind to spend to update its network to LTE speeds so it can match Bell, Rogers and Telus.

Shaw, a Western cable tv organization, had projects in 2008 to become a cell provider, spending $189 million in a spectrum auction that year AWS frequencies generally in British Columbia as well as Alberta. But 3 years later, looking at the thousands Wind and Quebecor/Videotron were investing to build networks from scratch chose to invest in Wi-Fi hotspots in primary Western metropolitan areas instead as an attraction for their cable clients.

The strategy seemingly did not stop Telus from making inroads into Shaw's territory. shaw deals So purchasing Wind - assuming acceptance from the Trudeau government - obtains Shaw an instantaneous community with around 940,000 members.

"The global telecommunication situation is instantly evolving to 'mobile-first' item products as consumers desire common connection from the service providers," CEO Brad Shaw explained in an announcement. "The purchase of Wind provides Shaw with a unique platform in the wireless industry which will allow us to offer a converged network answer to the customers which leverages our entire collection of best-in-class telecom services, which includes fibre, cable, WiFi, and now wireless. The deal represents a transformational step in the story of Shaw and we are enthusiastic about the long term growth prospects in mobile. This growth will likely be accelerated by combining Shaw's existing client associations, trusted brand and wireline as well as WiFi facilities with Wind's amazing resource base, such as their present spectrum position as well as mobile network."

With assistance from Shaw, Wind might possibly get more business clients. Wind CEO Alek Krstajic will continue with the company. The agreement is anticipated to seal in the 3rd quarter of the coming year.

Within a note to investors Canaccord Genuity notices the deal may help Shaw's bottom line because wi-fi is a progress field - 63 percent of Shaw's revenue base (legacy cable/satellite TV, home phone, and press) are in decline. "Additionally," the statement adds, "we believe that wireless reveals complete chances for combining and cross-selling" - even though the statement adds that bundled sales aren't huge at additional carriers.
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