Canada’s Craig Wireless sells spectrum to Inukshuk for $78 million

One of the pioneers in Canada's digital cable and broadband services Craig Wireless Systems Limited (Craig Wireless) has agreed to sell approximately a quarter of its wireless spectrum to Inukshuk Wireless Partnership (Inukshuk), a company owned by two of the country's biggest mobile operators.

Under the deal, Inukshuk which is a 50:50 joint venture between Rogers Communications and BCE Inc's Bell Canada, will acquire all of Craig Wireless' spectrum licences in the provinces of Manitoba in the central and British Colombia in the western parts of Canada for C$80 million ($78 million).

Winnipeg-based Craig Wireless provides fully fixed or mobile broadband services such as high-speed internet, data communications and other applications through WiMAX-enabled networks. In addition to the Canadian licences being sold, the company holds spectrum licences or leases in the US (Palm Springs, California), Greece and also has interests in New Zealand and Norway.

The company said that the proposed sale is part of its strategy of cashing in on its investments in the Canadian wireless spectrum. 

 Expressing his delight over the deal, co-CEO and chairman of Craig Wireless founder Drew Craig said: ''We are very pleased to be able to complete a deal with such great Canadian companies as Bell and Rogers," said Drew Craig, co-CEO of Craig Wireless.''

"This sale is very supportive of the company's strategy to create value for shareholders through a portfolio of spectrum investments,'' added Boyd Craig, co-CEO and the founder of the company.