Rogers Communications Inc. (RCI - Free Report) , a leading Canadian telecom and cable TV operator, has enhanced its 4GLTE wireless roaming services by teaming up with leading U.S. carrier – AT&T Inc. (T - Free Report) .
Rogers’ subscribers traveling to the U.S. can avail the 4GLTE wireless roaming service facility costing only $7.99 per day which includes 50 MB of daily data usage. Moreover, it will be the first Canadian carrier to offer roaming service in the U.S., thereby gaining a competitive edge over Canadian carriers like TELUS Corp. (TU - Free Report) and BCE Inc. (BCE - Free Report) .
Rogers was also the first company in Canada to launch LTE (Long Term Evolution) network. Initially, the company deployed LTE network in 102 cities in Canada, covering nearly 68% of Rogers’ footprint.
Rogers is continuously collaborating with international carriers to offer its LTE roaming services. The company teamed up with a Hong Kong-based carrier to initiate roaming service for its subscribers in Hong Kong and also joined forces with Swisscom AG to offer provide roaming facilities to its subscribers visiting Switzerland. It also offers roaming service in South Korea.
In second-quarter 2013, postpaid retail subscribers’ base for Rogers was around 7.976 million, up 3.5% year over year. Quarterly Postpaid ARPU was $64.7, down 1.1% year over year. Monthly churn rate was 1.17% compared with 1.15% in the prior-year quarter.
Hence, we believe that such aggressive LTE service deployment will drive Rogers’ subscriber base going forward.
Currently, Rogers Communications has a short-term Zacks Rank #4 (Sell).