Yahoo Finance Rogers to run TTC wireless network, expand 911 and roll out 5G after acquisition
Rogers Communications Inc. is acquiring the company that operates the wireless network across Toronto’s subway system and is promising to eventually bring full 5G connectivity to the system.
Rogers said April 10 that it has entered into an agreement to buy BAI Communications Canada, which held the exclusive rights to build cellular and Wi-Fi networks across the Toronto Transit Commission’s underground system of subway stations since 2012.
The details of the transaction, which Rogers expects to close in the next two weeks, were not disclosed. It said the completion of the sale is subject to closing conditions.
BAI Communications, the parent company of BAI Communications Canada, has been majority owned by the Canada Pension Plan Investment Board (CPP Investments) since 2009.
“Following active negotiations over the past year, we have decided that the best outcome for the Toronto Transit Commission (TTC) and its riders is a sale of our assets to Rogers,” the Canadian subsidiary said in a press release April 11.
Rogers said the acquisition of the company will allow it to bring full 5G connectivity services to the entire subway system, including access to 911 for all riders.
Calls for better access to wireless service, especially 911 emergency service, have been growing in recent months amid an increasing number of reports of random attacks in Toronto’s transit system.
Rogers said users of the TTC subway currently can only call 911 where the cellular network exists — on station platforms, concourses and about 25 per cent of the tunnels.
“Rogers will work to quickly address gaps in the busiest and most critical sections of the subway system,” it said in a press release.
The telco giant said 5G coverage for wireless services beyond 911 will be rolled out over time. It said it expects the 5G network build to take approximately two years to complete because construction must take place in limited overnight windows, when the subway isn’t running.
It said the completed 5G network will deliver wireless coverage with mobile voice and data services in all 75 stations and almost 80 kilometres of Toronto’s subway system.
In an email, a Rogers spokesperson said the telco plans to initiate discussions with other providers to participate.
“As we build out the network, we will work with other providers to bring them on board,” the spokesperson said.
In a post on its official Twitter account, the Toronto Transit Commission said it was pleased with the agreement and is working with Rogers to finalize the terms of a new contract for the multi-year network expansion plan.
The transaction comes just a week after Rogers closed its acquisition of Shaw Communications Inc., which previously owned Freedom Mobile, the only mobile carrier that offers full service in the underground system.
In a side deal as part of the merger, Freedom Mobile was purchased by Quebecor Inc.’s Videotron Ltd.
BAI Communications Canada is a subsidiary of Sydney, Australia-based BAI Communications Pty Ltd., which has also installed a communications system for Hong Kong’s public transit system, provided wireless connections for New York subway riders and owns and operates a network in Australia that transmits national television and radio broadcasts.
The Canada Pension Plan Investment Board owns the majority of BAI.
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