Rogers reviewing CRTC decision to choose Quebecor MVNO rates

Rogers Communications Inc. will be reviewing the impact of the CRTC’s decision to choose Quebecor Inc.’s offer for a mobile virtual network operator (MVNO) access agreement, and may even go so far as to appeal the decision, according to its CEO Tony Staffieri. Wednesday, the company released its second quarter results for 2023, two days after the CRTC chose Quebecor’s offer in final arbitration – which remains undisclosed for confidential reasons. The commission found that both proposals would have allowed Quebecor to provide wireless plans at lower prices outside of Quebec and contributed to the policy objectives. Under Rogers’ proposal, however, Quebecor would only be able to offer limited data, and a limited range of plans, without incurring losses. This was Rogers' first full quarter since it acquired Shaw. “The combined Rogers and Shaw has the scale, assets, and capabilities delivering unprecedented wireline and wireless broadband and network investments, innovation, and growth in new telecommunications services, and greater choice for Canadian consumers and businesses. The combination is accelerating the delivery of critical 5G service across Western Canada, from rural areas to dense cities, more quickly than either company could achieve on its own, by bringing together the expertise and assets of both companies,” the company wrote in its quarterly results. Profits decreased by 73 per cent to $109 million which the company said as due to “an approximate ongoing increase in quarterly depreciation and amortization as a result of the assets acquired] through the deal which closed in April. Rogers reported a 30 per cent increase in revenue this quarter compared to Q2 2022 – posting $5.05 billion versus $3.86 billion. Wireless revenue increased by seven per cent compared to last year, for a total of $2.42 billion. Cable more than doubled its revenue, jumping from $975 million in Q2 2022 to $2.01 billion this quarter. Media revenue came in at $686 million compared to $530 million this time last year – a 30 per cent increase. The company’s average revenue per user (ARPU) decreased from $58.83 this time last year to $56.79 this quarter. Gross and net postpaid mobile phone subscriber additions remained relatively flat compared to Q2 2022. Rogers reported 430,000 gross additions and 170,000 net additions this quarter. Rogers lost 5,000 prepaid mobile phone subscribers whereas last year it brought in 57,000. On the cable side, average revenue per account (ARPA) totalled $139.68, which is $15 more than it reported in Q2 2022, or a 12 per cent increase. Home phone subscribers continue to decline, as per the industry trend. Rogers reported a net loss of 29,000 this quarter, compared to 18,000 last year. Video subscribers saw a net increase of 12,000 versus 7,000 in Q2 2022. Retail internet net additions shot up from 6,000 last year to 25,000 this quarter. –Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca

Rogers reviewing CRTC decision to choose Quebecor MVNO rates

News | July 26, 2023

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Rogers reviewing CRTC decision to choose Quebecor MVNO rates

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