Rogers boss won’t confirm Xplornet ‘rumours’

Rogers Communications Inc. CEO Tony Staffieri declined to comment on what he called "rumours" that the company – alongside Shaw Communication Inc. – have presented a plan to the federal government that would see Xplornet Communications Inc. take over Shaw's Freedom Mobile wireless brand as part of regulatory approval of the Shaw acquisition. "We're not going to comment on any rumours that are out there," Staffieri told analysts on a Wednesday morning first quarter earnings call. As first reported Tuesday evening by the Globe and Mail, Rogers has proposed to the federal regulators that rural internet provider Xplornet would take over Freedom as a national brand. The news is sure to throw cold water on previously widely held notions that Quebecor Inc. would purchase Freedom as part of a planned national expansion. "What I can reiterate are the minister's comments that he expects to see a solution that continues to have a fourth robust wireless operator in this country, and he said what he said. So we continue to work with the government to close the transaction," the CEO said, adding that he still expected the transaction to close in the second quarter of the year, which ends June 30. Xplornet was also included in a 2017 mandated wireless divestiture as part of the regulatory approval of BCE Inc.'s acquisition of Manitoba Telecom Services Inc., though Competition Bureau Commissioner Matthew Boswell told the House of Commons Industry committee last year that the regulator has not had enough resources to monitor the effects of the regulatory remedy after the fact. Rogers reported a four per cent increase in revenue for the three months that ended Mar. 31, up to $3.62 billion from $3.49 billion for the same period last year. The company's wireless side revenue increased three per cent, up to $2.14 billion from 2.07 billion last year, while the cable side revenue climbed two per cent to $1.04 billion from $1.02 billion. Rogers attributed much of the revenue increase in wireless to the return of higher roaming fees as COVID-19 lockdowns have decreased and travel has increased. Rogers' chief financial officer Glenn Brandt told analysts on the quarterly earnings call that the increase in volume of both business and consumer travel, alongside roaming rate increases for Rogers customers have contributed to the rebound. Rogers' media revenue climbed 10 per cent up to $482 million from $440 million a year ago. Rogers net income too climbed nine per cent to $392 million from $361 million this time last year. In wireless, the company added 66,000 postpaid mobile subscribers, 44,000 more than the 22,000 they added this time last year, for a total of 8.91 million. In prepaid, the company lost 16,000 mobile subscribers, less that the 56,000 the company lost this time a year ago, for a total of 1.15 million. Mobile wireless monthly average revenue per user also climbed to $57.25, up from $55.42 this time last year. On the wireline side, the company added 13,000 retail internet subscribers, a slight drop from the 16,000 Rogers added this time last year, for a total of 2.25 million. Rogers also added 14,000 television subscriber subscribers in the quarter, a rebound from the 12,000 the company lost in the same quarter last year, for a total of 1.51 million customers. — Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca

Rogers boss won’t confirm Xplornet ‘rumours’

Broadcast | April 20, 2022

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Rogers boss won’t confirm Xplornet ‘rumours’

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