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Rogers may hike Fido fees

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Anonymous
December 10, 2004 8:36:54 PM

Archived from groups: alt.cellular.fido (More info?)

Rogers may hike Fido fees





NANCY CARR, CP 2004-12-10 01:58:19







TORONTO -- Rogers Communications Inc. has "no commitment" to
maintaining the low rates established by its newly acquired Fido wireless
service, chief executive Ted Rogers said yesterday. "We have no commitment
to keeping the price levels the same as they were and we've already
announced a significant increase in the price for City Fido for new
customers coming in late December and early January," Rogers told an
investor conference in New York.

"We're not known for having rock-bottom prices. With Rogers it's a
premium brand, a premium service, a premium product."

Fido's previous owner, Microcell Telecommunications, had been more
aggressive in its pricing strategies than Canada's other three cellphone
companies, which have said publicly they didn't want to erode the economic
viability of their businesses.

Rogers' subsidiary Rogers Wireless Inc. acquired Microcell for $1.4
billion. That made Rogers Wireless Canada's largest cellphone operator,
ahead of Bell Mobility and Telus Mobility.

Fido is best known among consumers and wireless providers alike for
offering a $45 flat rate for unlimited calls within the Toronto, Montreal
and Vancouver areas. Rogers and Telus have admitted their wireless
businesses had felt City Fido's bite.

Ted Rogers said yesterday his company will keep the Fido brand but not
necessarily the low price.

He also pointed out that despite the $45 flat monthly fee, average
revenue per user of the City Fido service comes to over $62.

"That's above what the normal pricing ARPU is, so there must be
something going on there," Rogers told analysts in a webcast
question-and-answer period after his speech.

Rogers also warned that the future of the mobile phone business is not
in simply undercutting the competitors' prices but an "evolution" that will
see "the wireline phones at home being replaced by, in my opinion, a
combination of a phone that will work in the house . . . and then over to
the cellular switch," Rogers said.

He said wireless companies have to work on increasing their revenues,
because so many customers are using their mobile phones on weekends and in
the evenings, when service is free.

His company will aim to do that, he said, by developing a combination
wireless/wireline phone, including video, that works through the Internet
cable network, which is owned by another Rogers subsidiary, Rogers Cable,
when the user is at home.

"There's an opportunity, therefore, not to just go in and slash prices
all over the place, but to give greater value by giving better services,"
Rogers said.

While the wireless/wireline video phone won't be a reality for some
time, the company will begin testing its voice-over-Internet phone in April
and has set a target date of July 1 for deployment.

Shaw Communications Inc. and Cogeco Cable, the main operating unit of
Cogeco Inc., are also working on Internet telephony services.

Rogers owns about 27 per cent of Cogeco Cable's subordinate voting
shares and about 21 per cent of all outstanding shares of its parent, Cogeco
Inc.

It announced yesterday it has signed a deal to raise its stake in
Cogeco Inc. in a share-swap deal involving stock in Cogeco Cable.

Rogers said it will exchange 658,125 subordinate voting shares of
Cogeco Cable for 675,000 subordinate voting shares of Cogeco Inc. owned by
an unidentified third party.

Rogers said it has "no current intention" of acquiring control of
Cogeco.

Shares in Rogers Communications closed down 10 cents yesterday at
$28.70 on the Toronto stock market. Rogers Wireless shares lost 15 cents at
$50.





Copyright © The London Free Press 2001,2002,2003

More about : rogers hike fido fees

Anonymous
December 10, 2004 8:36:55 PM

Archived from groups: alt.cellular.fido (More info?)

twtwwtin wrote:
> service, chief executive Ted Rogers said yesterday. "We have no commitment
> to keeping the price levels the same as they were and we've already
> announced a significant increase in the price for City Fido for new
> customers coming in late December and early January," Rogers told an
> investor conference in New York.

No surprise there. What we need to know is how long existing Fido customers
will be grandfathered in their existing rates.

> "We're not known for having rock-bottom prices. With Rogers it's a
> premium brand, a premium service, a premium product."

Now, that is a big joke. I view Rogers as being low quality, mass market
marketing hype and poor implemetation company. Certaintly not a premium product.

> He also pointed out that despite the $45 flat monthly fee, average
> revenue per user of the City Fido service comes to over $62.
>
> "That's above what the normal pricing ARPU is, so there must be
> something going on there," Rogers told analysts in a webcast
> question-and-answer period after his speech.


Duh !!!!! Long distance my friend. If yo dump your landline alltogether, that
means that 100% of long distance is done on your mobile. And you're probably
adding optiosn such as data, caller id etc etc (or are those included in the
$45 ?

> Rogers also warned that the future of the mobile phone business is not
> in simply undercutting the competitors' prices but an "evolution" that will

Funny to hear such a dinosaur speak. At a time where 3G operators have just
implemented fancy features and are wondering if customers will really pay $50
to watch a 30 minute TV programme on their phone, Rogers should be the last
one to question the need to drive prices down.

It is by driving prices down that you will generate usage and make new
applications cost effective on a mobile platform. If it costs $50 to watch 30
minutes's worth of video, then your fancy investment to allow this to happen
won't generate much revenu.

> He said wireless companies have to work on increasing their revenues,
> because so many customers are using their mobile phones on weekends and in
> the evenings, when service is free.

That is because Rogers charges too much for service during normal hours. When
I switched to Fido, it was a liberation to have low rates any time of day,
which allowed me to use the phone whenever I wanted to, not whenever I could
afford to.

To this end, T-Mobile has good TV ads in the USA.

The wireless market in caada has just become a whole lot less interesting. It
is a real shame that Branson didn't buy Microcell.
December 10, 2004 8:42:28 PM

Archived from groups: alt.cellular.fido (More info?)

On Fri, 10 Dec 2004 13:46:45 -0500, JF Mezei
<jfmezei.spamnot@teksavvy.com> wrote:

>The wireless market in caada has just become a whole lot less interesting. It
>is a real shame that Branson didn't buy Microcell.

Alas, there's still foreign ownership restrictions aren't there?

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Anonymous
December 11, 2004 3:38:19 AM

Archived from groups: alt.cellular.fido (More info?)

Joseph wrote:
> Alas, there's still foreign ownership restrictions aren't there?

If the government lifted the spectrum cap to accomodate Rogers/Telus' offers,
it could have lifted foreign ownership in such a way that it still ensures the
industry as a whole remains controlled by canadians.

Fact is that Branson is far more compatible with Fido's philosphy of battling
the big bad guys than Rogers which is a big bad guy.

had Branson gotten Microcell, Fido would have continued to be the black sheep
of the canadian mobile market offering better rates than the big bad guys.
December 11, 2004 9:22:31 AM

Archived from groups: alt.cellular.fido (More info?)

On Sat, 11 Dec 2004 00:38:19 -0500, JF Mezei
<jfmezei.spamnot@teksavvy.com> wrote:

>Joseph wrote:
>> Alas, there's still foreign ownership restrictions aren't there?
>
>If the government lifted the spectrum cap to accomodate Rogers/Telus' offers,
>it could have lifted foreign ownership in such a way that it still ensures the
>industry as a whole remains controlled by canadians.
>
>Fact is that Branson is far more compatible with Fido's philosphy of battling
>the big bad guys than Rogers which is a big bad guy.
>
>had Branson gotten Microcell, Fido would have continued to be the black sheep
>of the canadian mobile market offering better rates than the big bad guys.

Well, you can't deal with "what ifs" you have to deal with the reality
of what works *today.* It doesn't make any difference since that
situation is not applicable to today's reality even though some folks
might pine for it.

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Anonymous
December 13, 2004 6:04:42 PM

Archived from groups: alt.cellular.fido (More info?)

In message <SPCdnQVwrtxlQyTcRVn-vQ@rogers.com> "twtwwtin"
<twtwwtin@rogers.com> wrote:

> He also pointed out that despite the $45 flat monthly fee, average
>revenue per user of the City Fido service comes to over $62.
>
> "That's above what the normal pricing ARPU is, so there must be
>something going on there," Rogers told analysts in a webcast
>question-and-answer period after his speech.

The Rogers analysis was heard to mutter "But don't worry, we'll reduce
the ARPU to more reasonable levels as soon as possible" under his
breath.


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