Tuesday, July 28th14.0°C
27107

Rogers says NHL fans will benefit from wireless spectrum purchase

MONTREAL - Rogers Communications is betting consumers — especially NHL hockey fans — will be watching more video on their tablets and smartphones with its recent $3.3-billion purchase of wireless spectrum.

Rogers said Thursday the new spectrum will help it better handle increased traffic on its network, and will complement its 12-year deal with the NHL for the English and French national broadcast rights to all games, including the playoffs and the Stanley Cup final on all of its platforms.

The additional spectrum will allow more consumers to be on its network at the same time watching a hockey game on their mobile devices, giving them a consistent and fast experience, the Toronto-based telecom company said.

"Mobile video consumption tends to be around big events and often times, those are sporting events and there's no bigger sporting in this country than hockey," said David Purdy, senior vice-president of content at Rogers (TSX:RCI.B).

"So it will allow for us to manage what we think is going to be an incredible, explosive growth in terms of the consumption of mobile video."

Last November, Rogers scored a $5.2-billion blockbuster deal with the National Hockey League, a coup against big telecom competitor Bell and its TSN sports channel.

Bell (TSX:BCE) also has been a rival in mobile television, but now Rogers can offer NHL and professional baseball content, as the owner of the Toronto Blue Jays.

Telecom analyst Troy Crandall said Rogers needs a strategy for its big spending on spectrum and the NHL deal, and may end up offering sports fans new packages for their mobile devices.

"If you're going to spend that much on two different things — the exclusive content for the NHL and you're going to buy that much wireless spectrum — logic puts two and two together," he said.

Telecom analyst Greg MacDonald of Macquarie Capital Canada said he questions how much consumers will want to pay to stream live sports, but added that Rogers expects that live sports will add to its monthly revenue per customer.

"But I don't think the market is going to see a conclusion on this within the next year," said MacDonald.

Rogers was able to successfully bid on paired blocks of 700 megahertz spectrum and won 22 licences across the country, except in the Yukon, Northwest Territories and Nunavut. The spectrum — needed to make cellphone networks operate — is considered valuable because of its ability to penetrate elevators and underground parking lots in big cities and to travel longer distances in rural areas.

Rogers said winning paired blocks of spectrum — needed to make cellphone networks operate — is like having more lanes on a highway.

The recent spectrum auction in January raised a record $5.27 billion for the federal government. However, the auction failed to immediately entice a fourth national player into the Canadian wireless market to provide more competition.

Telus (TSX:T) spent just over $1.14 billion for 30 licenses, while Bell spent $565.7 million for 31 licenses and says it will start deploying the spectrum in rural and remote areas right away.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14012.76+11.39
S&P CDNX581.57-0.15
DJIA17526.48+85.89
Nasdaq5050.15+10.38
S&P 5002078.43+10.79
CDN Dollar0.7719+0.005
Gold1097.10+0.60
Oil47.94+0.09
Lumber257.10-0.60
Natural Gas2.84+0.05

 
Okanagan Companies
Pacific Safety0.18-0.01
Knighthawk0.010.00
QHR Technologies Inc1.37+0.01
Cantex0.035-0.015
Anavex Life Sciences0.895-0.015
Metalex Ventures0.06-0.01
Russel Metals18.65-0.80
Copper Mountain Mining0.84+0.04
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.01
Mission Ready Services0.15+0.00
Decisive Dividend Corp2.60-0.10

 





FEATURED Property
23343041612 Marina Way
4 bedrooms 3 baths
$745,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_



26509




Member of BC Press Council


24843