Rogers’ 2008 plans don’t include price competition, just quality and speed

Rogers Communications Inc. insists it won't do anything different to capture customers in the coming months, despite last month's government announcement allowing new competitors into Canada's wireless industry. And based on the wireless company's performance over the past several quarters, it doesn't appear that changes are required. In the last 18 months, Rogers has consistently captured about 40% of the new net subscriber additions across the industry and now counts more than seven million subscribers.This stay-the-course strategy for 2008 was confirmed by Rogers CFO Bill Linton at UBS Securities' Annual Global Media and Communications Conference earlier this week. "Our view, whether it's competing against Bell and Telus or competing against new entrants, is to ensure that we have the highest quality the most innovative product set," he stated. "We think we will be able to grow by having the best products." Linton is referring to the company's speed-leading network based on the next-generation of GSM technology, high-speed packet access. Already available to approximately 60% of the Canadian population in the country's top 25 markets, the company will continue to spend on network expansion. Pressed on wireless data pricing, which has decreased significantly at Bell and Telus over the past several months, Linton contends the industry is already highly competitive. "Our competition has basically ended at the point of sale. We have introductory offers we heavily discount hardware," he said. "What we haven't done is gone too much to unlimited buckets...and I don't think you'll see Rogers leading that trend." While apparently unwilling to compete on price for wireless data, the media and communications conglomerate is focused on capturing the data market. Linton explained that, again, the company will do this by having the fastest network and the best products. He added that Rogers' status as the only GSM provider in Canada is a huge advantage in winning the data market because the latest and greatest next devices are first built for the GSM standard. "In Canada, and probably in the US, it's still a hardware game. It's who's got the coolest new phones and who gets them the quickest," he said, noting that the data market is the next big battleground. "And he who can provide the experience on a device similar to the experience you get on a desktop is going to be the next winner."

Rogers’ 2008 plans don’t include price competition, just quality and speed

News | December 6, 2007

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