Last year, the carrier tried its hand at unconventional business lines such as machine-to-machine (M2M) wireless connectivity, banking and home monitoring service. It also invested $5 million in Zoove, a mobile marketing solutions provider and forged significant partnerships with Microsoft and Counter Path.
The pressure to line up alternate revenue streams was echoed by the company’s latest quarterly profit dropping by 16 percent as rising competition hurt its cable and wireless divisions. The company fell well short of analyst expectations.
Therefore, it’s no surprise that Rogers is now betting big on M2M (machine to machine) technology. The company predicts M2M would be a C$400 million ($384 million) market in Canada by 2015 and it’s leaving no stone unturned to gain an early-mover advantage in this lucrative segment.
“$400 million is just the start. It’s just the beginning of what we think is an absolute explosion of opportunity in the M2M space,” Robert Bruce, president of the company’s wireless and cable units, said at the 2012 Canadian Telecom Conference in Toronto. “At times, people in their day-to-day lives look at our business and they don’t see the incredible growth opportunities ahead of us. Today (is) about calling out some of those things that are going to change the shape of our industry”.
In fact, Rogers is no stranger to the M2M segment. Last June, the company announced that it will be providing Hydro-Quebec with machine-to-machine (M2M) wireless connectivity across the province. Rogers was awarded the six year contract after Hydo-Quebec put out a call for proposals. Back then, Rogers claimed that it clinched the deal “because of its expertise in being able to provide M2M turnkey business solutions via a reliable network at competitive prices.”
Rogers also announced that it has signed several strategic deals in the M2M segment. The carrier has partnered with U.S.-based Axeda Corp to offer a secure platform for businesses to use M2M applications. Rogers also partnered with Jasper Wireless – a U.S.-based M2M services company to build billing and management systems.