Rogers Communications Inc. (RCI - Free Report) , a leading Canadian telecom and cable TV operator, has decided to spend $700 million in Alberta in the next four years. The huge investment will not only foster enormous growth in Rogers’ LTE deployment plan but will also drive its top line going forward.
The $700 million investment plan will mainly boost 4GLTE deployment across Alberta by nearly 40%. Moreover, the company also plans to rollout numerous retail outlets to retain as well as attract customers. The company also targets to launch 12 stores by the end of this year.
Rogers also plans to offer next generation business solutions to Alberta's business segment mainly dealing with the oil and gas division and also includes machine-to-machine and connected solutions.
Recently, the company announced its plan to acquire Pivot Data Centres Inc. from private equity firm Sverica International for approximately $150.7 million. Moreover, it also bought BLACKIRON Data from Primus Telecommunications Group for $200 million. Hence, we believe that the acquisition of these data centers will certainly boost Rogers’ enterprise-level data center and cloud computing services while moving ahead.
Rogers was also the first company in Canada to launch its LTE (long-term evolution) network. Initially, the company deployed LTE network in 102 cities in Canada, covering nearly 68% of Rogers’ footprint. Strong growth of LTE service is well supported with the continuous launch LTE-based smartphones.
Recently, the company launched Nokia Corp’s (NOK - Free Report) smartphones, Lumia 1025 and 625. During the second quarter of 2013, the Wireless segment activated record 678,000 smartphones, up 7.8% year over year. Most of these smartphones were either iPhones of Apple Inc. (AAPL - Free Report) and Google Inc. developed Android-based handsets. Smartphone customers now constitute a record 72% of the overall postpaid subscriber base compared with 63% in the year-ago quarter.
Currently, Rogers Communications has a short-term Zacks Rank #3 (Hold).