Unlimited plans eat into Rogers results - Mobile World Live

Unlimited plans eat into Rogers results

22 JAN 2020

Rogers Communications CEO Joe Natale revealed the first device compatible with the operator’s fledgling 5G network will become available in March, as the company reported Q4 2019 figures which were weighed down by rapid uptake of new unlimited tariffs.

Natale said on an earnings call the operator just finished testing the device, which is from Samsung.

The announcement came a week after the operator began construction of its 5G network in four cities. At the time, it noted compatible handsets would be made available later in the year.

Results
In Q4, Rogers Communications added 131,000 post-paid wireless subscribers. Though total revenue for its wireless business grew by 1 per cent year-on-year to CAD2.49 billion ($1.9 billion), service revenue for the segment slipped 1 per cent to CAD1.78 billion.

Overall revenue of CAD3.95 billion was flat, while profit fell from CAD502 million to CAD468 million.

During the call, Natale attributed the revenue dip in part to rapid adoption of its unlimited tariffs, which were introduced in June 2019. He said approximately 1.4 million subscribers are now on an unlimited offer, noting the figure was three-times higher than the total Rogers Communications expected at this point in time.

While 60 per cent of customers are paying more for an unlimited plan than their previous tariff, executives said a reduction in overage revenue weighed on the overall service figure.

Natale added pressure related to the unlimited transition is expected to continue in the first half of this year.

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Diana Goovaerts

Diana is Mobile World Live's US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only...

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