Rogers Communications is betting on consumers watching more video on their tablets and smartphones — especially NHL hockey fans — with its recent $3.3-billion purchase of wireless spectrum.
Analysts say Rogers’ acquisition in the January auction will be needed to allow hockey fans to stream NHL games — which uses up lots of bandwidth — on their mobile devices.
Last fall, Rogers scored a $5.2-billion deal for the national rights to all National Hockey League games, including the playoffs and Stanley Cup final, on all its platforms in both English and French.
Rival Bell has been a leader in offering mobile TV to its customers, but Rogers will not only have NHL content but also professional baseball as the owner of the Toronto Blue Jays.
The recent spectrum auction raised a record $5.27 billion for the federal government.
However, the sale failed to immediately entice a fourth national player into the Canadian wireless market to provide more competition.
Some of the telecom companies are starting to roll out plans for the spectrum which is considered ideal both for rural areas and dense urban cities.
Telus 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.
Disclosure: Rogers owns Marketing and MarketingMag.ca