MTS-Allstream and SaskTel have acquired spectrum assets from rival player Wind Mobile, which said it would use the proceeds from the sales to expand its network elsewhere, including building out its LTE infrastructure.
Both telcos on Friday announced the purchase of AWS-1 spectrum in their respective operating provinces.
SaskTel said it had received the green light from Industry Canada to transfer ownership of two blocks of AWS-1 spectrum from Wind Mobile in Saskatchewan.
"Our 4G LTE network in the nine major urban centres in Saskatchewan operates on the AWS-1 spectrum band and with these additional blocks we can deliver significantly more bandwidth and faster speeds," said SaskTel CEO Ron Styles, in a statement.
Wind also said the deal would boost its 4G business.
"We will channel the proceeds toward network expansion and quality improvements including LTE service," said Alek Krstajic, who became the operator’s new chief executive earlier this year.
He made a similar comment after Manitoba-based MTS announced that it had acquired 15 MHz of Wind’s paired AWS-1 spectrum.
"We will be able to focus our resources on providing strong competition in Ontario, British Columbia and Alberta," Krstajic said.
"These sale proceeds, including our recent spectrum acquisitions from Rogers as well as the AWS-3 spectrum auction, will be used towards network expansion and quality improvements including the LTE rollout," he added.
Rogers Communications, Canada’s biggest mobile operator by subscribers, agreed to carry out a spectrum swap with Wind and to sell it some AWS-1 assets as part of its June deal to acquire Mobilicity. Meanwhile, Wind paid C$56.4 million for frequencies in three service areas in the AWS-3 auction that concluded in March.
MTS said it will pay Wind C$45 million for the spectrum. It will finance the deal using existing credit facilities that it will pay back following the sale of its Allstream business services provider unit.
The telco on Thursday revealed that, following a restructuring process that is almost complete, it will move to exit Allstream. It plans to engage with prospective buyers in the second half of this year.
