In a bid to offer high-speed wireless connection to Sony Corporation’s (SNE - Analyst Report) 3G-based PlayStation Vita, Rogers Communications Inc. (RCI - Analyst Report) – the second largest telecom operator in Canada, intends to collaborate with Sony’s subsidiary Sony Computer Entertainment Canada. The wireless connectivity will be available for a price of $299 this fall.
Rogers’ wireless connection will enable the PlayStation Vita users to stay hooked with the game wherever they feel like. Faster 3G network service will also offer better gaming experience to the users and will also allow them to play online games with their friends while on the move. Simultaneously they can update their latest scores on different social network sites.
Rogers will be offering two different monthly plans of 250 MB and 5 GB to PlayStation Vita users costing $15 and $35, respectively. PlayStation Vita users can easily activate their data plans through Rogers SIM card integrated within the device which also allows better wireless connectivity and easy payment interface support to its users.
In the recently concluded second quarter, Rogers Communications reported dismal results, where both its top and bottom lines fell short of the Zacks Consensus Estimates. Consequently, in order to improve its top-line growth, the company is continuously launching different 3G/4G wireless devices, which we believe will boost its profitability in the upcoming days. As of now, the company is also involved in a lot of media-related business acquisitions, which will aid in strengthening their media business.
Rogers Communications Inc. has a Zacks #3 Rank, implying a short-term Hold rating. Considering the fundamentals, we maintain our long-term Neutral recommendation on the stock.