Rogers Says Data Demand Fuelling Wireless Growth

by Gaurav Kheterpal on December 6, 2012

It’s been an up and down kinda year for Rogers – Canada’s largest wireless provider. On one hand, Rogers continued its aggressive LTE expansion, witnessed inorganic growth with acquisitions such as Score Media and clinched key partnerships such as SAP, the other harsh reality remained that it’s wireless division simply hasn’t lived up to the expectations.

First quarter was bad, second was marginally better and by third quarter, a reversal of fortunes seemed inevitable – the common denominator though was that Rogers needs to up the ante in the wireless segment.

Rogers CEO Nadir Mohamed yesterday said the carrier is now witnessing a“re-acceleration” of growth, primarily driven by increasing data demands of smartphone subscribers.

While speaking at the UBS global media and communications conference in New York, Mohamed said that Rogers wireless business has stabilized in the last quarter or so. In the third quarter, Rogers hooked up 76,000 new net post-paid customers. In the same quarter in 2011, Rogers attracted 74,000 post-paid customers.

Luckily for Rogers, they’ve been able to sign up several customers to lucrative three-year contracts. The arrival of popular devices like the iPhone 5 and new Android smartphones will also help, potentially giving a boost to holiday numbers and generating some positive outcomes for Rogers’ fourth quarter results.

Of course, Rogers’ dominance in the LTE segment will help boost its prospects for next year. After its initial LTE launch, Rogers saw an 80 percent usage increase year over year. With more smartphones and tablet computers getting in the hands of consumers and more rigorous demands for devices, 4G networks will become the battleground for telecommunications companies around the world. Mohamed says this segment will be crucial for Rogers in the years to come.

Additionally, Rogers would be hoping to get increased revenues from new business lines such as mobile banking.

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Written by: Gaurav Kheterpal. www.digitcom.ca. Follow TheTelecomBlog.comby:RSS,TwitterFacebook, or YouTube.

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