Back to top

Image: Bigstock

Rogers Communication (RCI) Brings 5G to 14 Communities in Quebec

Read MoreHide Full Article

Rogers Communications (RCI - Free Report) recently expanded its 5G network to 14 new communities in Quebec, reaching a total of 80 areas in the province. The new 5G markets in Quebec include Repentigny, Saint-Lazare and La Prairie among others.

The company plans to improve connectivity to a total of 360 communities in Quebec by the end of 2021.

Rogers is increasingly enhancing its wireless network across Canada with more than 162 communities covered in Quebec in the past 18 months. These markets include rural and remote communities like Notre-Dame-des-Prairies and Saint-Augustin-de-Desmaures.

Rogers network investments, which have exceeded $60 billion, in the past three decades are part of a multi-year initiative to bring next generation wireless and wireline services to communities as well as businesses across Canada and improve connectivity for underserved rural and remote regions.

Shares of the company have returned 13.4% year to date outperforming the Zacks Cable Television industry’s rally of 9.3%.

Year to Date Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Strengthening Wireless, Internet Businesses to Aid Growth

Rogers Communications is expected to benefit from continuing strong demand for data by consumers and businesses. Improving Wireless penetration rate is anticipated to boost subscriber base.

The company expects the demand for broadband data to witness growth of about 30% per year. Rogers Communications currently offers 1 gigabyte speed to its user base.

This Zacks Rank #2 company continues to benefit from Internet subscriber additions and shift of Internet users to higher-usage tiers. As of Mar 31, 2021, Internet subscriber count was nearly 2.61 million, up 61K from the year-ago quarter’s figure. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Also, surging work-from-home trend and online-learning practice owing to the coronavirus-induced quarantines and lockdowns boosted Internet usage.

The company’s investments in 5G spectrum and partnerships with leading real estate companies to support 5G infrastructure deployment are catalysts. It expanded the Rogers 5G network to 173 markets across Canada, which will be a major growth driver over the long haul.

Further, the acquisition of Shaw Communications is expected to expand user base. Shaw is a major cable provider in Western Canada and owns Canada's fourth-largest mobile provider, Freedom Mobile. With around 2 million customers, Freedom ranks behind Rogers, Telus (TU - Free Report) and Bell Canada Enterprises (BCE - Free Report) , which have over 10 million customers each.

It also enables Rogers to use Shaw's fiber network in Western Canada for 5G backhaul. As part of the transaction, the companies will together invest $2.5 billion in 5G networks over the next five years across Western Canada, which will enhance competitiveness.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


TELUS Corporation (TU) - free report >>

Rogers Communication, Inc. (RCI) - free report >>

BCE, Inc. (BCE) - free report >>

Published in