Shaw Promotions

It required four years but Shaw Communications at last understood it had to be capable to provide cellular service to stay in touch with Telus.

Calgary based Shaw, said late Wednesday it has put in a deal to purchase the parent company of startup Wind Mobile for $1.6 billion should the government agrees.

The deal arrives only a short time following Wind's 6th birthday. One bonus of the deal is that it could make it easier - and perhaps speedier - for Wind to pay to improve its network to LTE rates of speed so it may match Bell, Rogers and Telus.

Shaw, a Western cable company, had projects in 2008 to become cellular carrier, spending $189 million in a spectrum public sale that year AWS frequencies mostly in British Columbia as well as Alberta. However three years after, checking out the millions Wind and Quebecor/Videotron were investing to create networks on their own decided to put money into Wi-Fi hot spots in main Western cities instead as an attraction for their cable tv customers.

The strategy apparently failed to stop Telus from making inroads in to Shaw's territory. Thus buying Wind - assuming acceptance from the Trudeau authorities - obtains Shaw an instantaneous network with about 940,000 members.

"The global telecom surroundings is immediately growing towards 'mobile-first' merchandise products as consumers require common online connectivity from the service providers," CEO Brad Shaw mentioned in a statement. "The purchase of Wind provides Shaw with a unique platform in the wireless industry that will permit us to offer a converged network answer to the customers that leverages our entire collection of best-in-class telecommunication services, including fibre, cable tv, WiFi, and now wireless. The transaction represents a transformational step in the story of Shaw and we are pumped up about our long term growth prospects in mobile. shaw deals This growth is going to be accelerated by combining Shaw's current customer relationships, trustworthy brand and wireline and also WiFi facilities with Wind's amazing resource foundation, which include their current spectrum position and mobile system."

With assistance from Shaw, Wind could possibly have more business clients. Wind CEO Alek Krstajic will remain with the company. The agreement is predicted to close in the third quarter of the coming year.

In a note to people Canaccord Genuity remarks the deal may help Shaw's bottom line since wifi is a progress sector - 63 percent of Shaw's earnings base (legacy cable/satellite television, home phone, and press) are in decline. "Additionally," the report adds, "we believe that wireless uncovers complete opportunities for bundling and cross-selling" - even though the report adds that bundled product sales are not large at additional carriers.