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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
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