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Rogers Sold 255,000 iPhones in Third Quarter 2008

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Can you imagine life without the iPhone? Remember the time when cellphones were only used to make “telephone calls”? Those days are over as the iPhone has revolutionized the way we view cellphones. They are now have integral parts of our busy lives, making things better (or worse).

When Rogers announced they were going to sell the iPhone 3G in Canada people were very excited. When we found out the prices and monthly plans we got pretty upset. Eventually the data plans were revised and eventually calm has settled. Just how many iPhone 3G units did we expect Rogers to sell? Well, yesterday they announced their third quarter results for 2008 and the numbers are staggering to say the least.

255,000 iPhones Sold in the Third Quarter of 2008

Yes, you read that number correctly. Rogers sold 255,000 iPhone 3Gs in their Q3 (July 11th to September) and they are poised to sell even more this holiday season I bet. Out of the 255,000 iPhones sold, one-third were new wireless subscribers and the other two-thirds were existing subscribers that upgraded to the iPhone and signed to contracts.

Not only did they sell a quarter million iPhones, they also increased their postpaid net subscribers by 191,000 (in other words, those awesome people like yours truly who signed on a 3 year contract–I know some of you did too!). The important ARPU (average revenue per user) was increased by 4% to $78/user, most likely due to the increase in wireless data subscribers.

Rogers earned $495 million in profit in the Q3 on $2.98 billion in sales. Wireless data sales alone accounted for almost 17% of the Rogers network revenue. The bottom line is that Rogers continues to rake in the dough with their GSM monopoly in Canada. However, with Telus and Bell building their HSPDA networks we can expect the tight grip Rogers has on the GSM industry coming to a close in the near future.

According to the Report on Business:

On a conference call with analysts, he said the company’s balance sheet remains β€œrock solid.” He added that Rogers is well-positioned to manage in a poor economy because customers traditionally do not like to cancel their cable, Internet or phone service when they are forced to trim personal expenses.

I find the above statement to be quite humorous. The last time I checked there was a wireless cancellation fee and data cancellation fee if you broke any of your contract obligations. So of course people aren’t going to cancel in a poor economy–they can’t afford the cancellation charges! πŸ˜‰

Rogers Decides to PUNK its Own Employees: Commissions are Reduced up to 50& Percent

Can you name an integral part of Rogers’ success? Just envision an army of hardworking Rogers/Fido employees signing up customers and pushing on the extras such as value packs and data plans. Well, Rogers has decided to decrease these commissions by up to 50%. According to BGR:

* Single options now only pay $1, a decrease of 50%
* Value packs now only pay $3.80, a decrease of 24%
* Non-term data now only pays $9, a decrease of 10%
* Month-to-month activation now only pays $3, a decrease of 40%
* Commission on accessories has decreased 30%

So it looks like we’re not the only ones paying the price to be a part of the almighty Rogers wireless network–their employees are getting the shaft too! Doesn’t this just make you feel all warm and fuzzy inside? If you’re a Rogers/Fido employee, I’d love to hear from you in the comments to verify the authenticity of this story. Until next time, keep on buying those iPhones everyone! πŸ˜‰

[Rogers Wireless, BGR]

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  • Tim Aucoin

    Tough economic times require tough moves in a lot of large corporations. I’m not defending Rogers decision to cut their employees commissions, but would be interested to see next spring when the economy starts to pick up again if this changes back to how it was. I will be interested also to see if any Rogers/Fido employees come on here and confirm these numbers which seem dramatically high.

    Have a fantastic Wednesday everyone! πŸ™‚

  • Tim Aucoin

    Tough economic times require tough moves in a lot of large corporations. I’m not defending Rogers decision to cut their employees commissions, but would be interested to see next spring when the economy starts to pick up again if this changes back to how it was. I will be interested also to see if any Rogers/Fido employees come on here and confirm these numbers which seem dramatically high.

    Have a fantastic Wednesday everyone! πŸ™‚

  • Peacock

    Wow, I’m surprised to see they get commission in the first place. No wonder Rogers CSRs are so weird on the phone. I personally hate the customer service at Rogers. This just furthers my hatred towards them by knowing they earn dollars off phone calls. You think it would motivate them to do a better job. It feels like they only help YOU, if it helps THEM. Maybe I’m be pessimistic, but every time I call Rogers, I’m on hold for a minimum of 45 minutes and their system is always down. By cutting their commissions, the customer service can only get worse. What? Does Rogers think that people will work harder for less pay? NO! That never happens. I’ll change my mind when I receive better service. AHHHH, that felt good to rant. Maybe I need to lay off the halloween candy…

  • Peacock

    Wow, I’m surprised to see they get commission in the first place. No wonder Rogers CSRs are so weird on the phone. I personally hate the customer service at Rogers. This just furthers my hatred towards them by knowing they earn dollars off phone calls. You think it would motivate them to do a better job. It feels like they only help YOU, if it helps THEM. Maybe I’m be pessimistic, but every time I call Rogers, I’m on hold for a minimum of 45 minutes and their system is always down. By cutting their commissions, the customer service can only get worse. What? Does Rogers think that people will work harder for less pay? NO! That never happens. I’ll change my mind when I receive better service. AHHHH, that felt good to rant. Maybe I need to lay off the halloween candy…

  • Yeah, it is true that Rogers is cutting back commissions but these extra payments also gave them their current profits and sign ups. So it’s almost like a double edged sword–eliminate the incentives for the people on the ground and what will happen? Maybe a decrease in new activations and sign ups?

  • Yeah, it is true that Rogers is cutting back commissions but these extra payments also gave them their current profits and sign ups. So it’s almost like a double edged sword–eliminate the incentives for the people on the ground and what will happen? Maybe a decrease in new activations and sign ups?

  • The poobah

    I guess the Fido employees ARE pissed off as I was never charged for my iphone! I was told I would either have to pay for it when I picked it up or it would show up on my first bill, but I’ve received my 2nd bill and still nothing. Here’s hoping it stays that way! Anyone else lucky like this, or should I expect it to show up on the 3rd bill?

  • The poobah

    I guess the Fido employees ARE pissed off as I was never charged for my iphone! I was told I would either have to pay for it when I picked it up or it would show up on my first bill, but I’ve received my 2nd bill and still nothing. Here’s hoping it stays that way! Anyone else lucky like this, or should I expect it to show up on the 3rd bill?

  • gpouliot

    Poobah,

    It’s obviously in your best interest to clear up the billing issue rather than just ignore it. You owe them the money and they will likely figure it out eventually. I would think that it would be better to pay it on your terms now instead of having to pay it later when they insist upon it.

  • gpouliot

    Poobah,

    It’s obviously in your best interest to clear up the billing issue rather than just ignore it. You owe them the money and they will likely figure it out eventually. I would think that it would be better to pay it on your terms now instead of having to pay it later when they insist upon it.

  • Well, there is no doubt that Rogers has made a solid move to get them through the hard times. The iPhone promotion has ended and the cost has jumped by 33% to 50% for upgrades. And the data cost for the reasonably priced plan has risen by 10 times … yes, that’s 1000%. 6GB for $30 has become 500MB for $25. I know all this because I went in to upgrade today and then called them later to confirm the grim news.

    I’m a little disgusted. And needless to say, I suggested that they keep their phone.

  • Well, there is no doubt that Rogers has made a solid move to get them through the hard times. The iPhone promotion has ended and the cost has jumped by 33% to 50% for upgrades. And the data cost for the reasonably priced plan has risen by 10 times … yes, that’s 1000%. 6GB for $30 has become 500MB for $25. I know all this because I went in to upgrade today and then called them later to confirm the grim news.

    I’m a little disgusted. And needless to say, I suggested that they keep their phone.

  • Pingback: Rogers Removing System Access Fee? Cheaper iPhone Bill Soon?()

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  • Alex (rogers wsa)

    To correct the previous posts, Rogers has cut commissions on Wireless, but on At home services the commission has nearly tripled, rogers home phone that used to pay $15 is now $25, internet $15, cable $10. Yes it has been proven that rogers does have some shitty plans including the douchebag move $25 for 500MB?? wtf, I asked my area sales manager why they couldn’t offer the 6gb for 30, EVEN KNOW THE RESIDUAL INCOME FOR ROGERS IS NEARLY 45% FOR THAT PLAN!?!?!?!?! AND about the other person complaining about the wait times to call the call center, now I dont work at a call center but i can tell you the two reasons why you have the wait, one, they are fucking stupid over the phone and half the time I cannot even understand them and the SECOND REASON IS ALL THESE DUMB PEOPLE THAT CANT FIGURE OUT SOMETHING ON THIER OWN AND HAS TO CALL THE CALL CENTER FOR SOMETHING SO DUMB AS FIGURING OUT WHY SOMETHING DOESNT WORK, ITS USUALLY A; DID YOU PAY YOUR FUCKING BILL, OR B YOUR A FUCKING DUMBASS LEARN HOW TO PLUG CORDS THAT ARE THE SAME FUCKING COLOUR AS THE ONES YOUR PLUGGING THEM INTO!!!!! YES I HATE ROGERS BUT I HATE THE DUMB CUSTOMERS THAT MAKE MY JOB A LIVING HELL !

  • Alex (rogers wsa)

    To correct the previous posts, Rogers has cut commissions on Wireless, but on At home services the commission has nearly tripled, rogers home phone that used to pay $15 is now $25, internet $15, cable $10. Yes it has been proven that rogers does have some shitty plans including the douchebag move $25 for 500MB?? wtf, I asked my area sales manager why they couldn’t offer the 6gb for 30, EVEN KNOW THE RESIDUAL INCOME FOR ROGERS IS NEARLY 45% FOR THAT PLAN!?!?!?!?! AND about the other person complaining about the wait times to call the call center, now I dont work at a call center but i can tell you the two reasons why you have the wait, one, they are fucking stupid over the phone and half the time I cannot even understand them and the SECOND REASON IS ALL THESE DUMB PEOPLE THAT CANT FIGURE OUT SOMETHING ON THIER OWN AND HAS TO CALL THE CALL CENTER FOR SOMETHING SO DUMB AS FIGURING OUT WHY SOMETHING DOESNT WORK, ITS USUALLY A; DID YOU PAY YOUR FUCKING BILL, OR B YOUR A FUCKING DUMBASS LEARN HOW TO PLUG CORDS THAT ARE THE SAME FUCKING COLOUR AS THE ONES YOUR PLUGGING THEM INTO!!!!! YES I HATE ROGERS BUT I HATE THE DUMB CUSTOMERS THAT MAKE MY JOB A LIVING HELL !

  • Kim Letkeman

    To add to my comment in late October, I have chosen to resurrect my old Audiovox SMT5600 smart phone running the venerable Windows Mobile 2003 and am perfectly happy to wait until Rogers and Apple come up with pricing that does not feel like retribution for some past sins. As a loyal customer that uses Rogers for everything, I feel used by them whenever I talk about pricing, so I have chosen to wait and see. Which makes my response to the question that opened this blog entry “Can you imagine life without the iPhone?” a resounding YES!

  • Kim Letkeman

    To add to my comment in late October, I have chosen to resurrect my old Audiovox SMT5600 smart phone running the venerable Windows Mobile 2003 and am perfectly happy to wait until Rogers and Apple come up with pricing that does not feel like retribution for some past sins. As a loyal customer that uses Rogers for everything, I feel used by them whenever I talk about pricing, so I have chosen to wait and see. Which makes my response to the question that opened this blog entry “Can you imagine life without the iPhone?” a resounding YES!

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