Share:

The Globe and Mail: ‘Rogers is a Victim of Its Own Success’

Share:

Rogers is set to announce its quarterly earnings this Wednesday, and many analysts are speculating the carrier will release numbers that show a levelling off in growth within its wireless division, notes The Globe and Mail:

Rogers’ early success with the iPhone has given it the largest base of iPhone users in the country. When Apple releases a new version, Rogers reserves a substantial portion of its allotment for existing customers who want to upgrade. By prioritizing existing customers, Rogers fails to capitalize on some potential new accounts. In addition, analysts speculate that the company faced tight supply for the latest iPhone 4S last quarter.

In the previous 2011 Q3 report, Rogers noted their quarter was directly influenced by heightened competition. It appears the upcoming Q4 will be a continuation of that.

When Rogers had exclusive rights to the iPhone 3G in Canada, it was able to sign up far more newer customers and earn more data revenue compared to its rivals Telus and Bell. However, that exclusivity didn’t last long as Telus and Bell got rights to the iPhone 3GS a year later.

The playing field has evened out and UBS Securities analyst Philip Huang predicts Rogers’ new sign ups of postpaid customers will be significantly less compared to Telus and Bell. Maher Yaghi from Desjardins Securities forecasts the important barometer of average revenue per user (ARPU) actually declined for Rogers by 3.5% compared to increases by its rivals in the range of 1 to 4 percent.

Bell and Telus decided to join hands to launch their HSPA+ 3G network, and have also done the same with their latest LTE networks. This has allowed these two carriers to share the costs of maintaining infrastructure compared to Rogers managing their EDGE/3G/LTE networks on their own.

The landscape has changed significantly for Canadians when it comes to the iPhone. The iPhone 4S was available this year from Rogers, Telus, Bell, Fido, Virgin, MTS Allstream, and SaskTel. We’ve seen the ‘Big 3’ trying to compete with each other by introducing various voice and data plans.

When it comes down to choosing a network in Canada for your iPhone, Canadians now appear to be make decisions based on customer service and loyalty pricing, instead of just availability. Do you agree? Who’s your current iPhone carrier? Take our poll below!


[via Globe and Mail]

Share:

  • JP

    I tried to go with MTS, but their convoluted website doesn’t allow one to determine the actual costs involved to make an informed decision. Rogers’ site allowed me to pick a phone and a plan online and outlined clearly what I would be paying. No unlimited data option, but at least I knew what I was getting, and I was able to print everything out to take to the store.

  • Jasonxx8

    Rogers is gonna go down soon. I was with them for almost 9 years but they couldn’t give me a decent unlimited plan as loyal rogers customer kinda I got from $45 koodo unlimited plan. Thanks guys

  • Ms

    Yes. Price matters.

  • NobodyFamous

    Price and service is what matters, price first.  I was a long time Rogers subscriber (7 years), and they recently lost me because they could not compete on price with Telus, and could not compete service wise either (they botched up my last contract, and had me spending 5+ hours on the phone with them to correct it, even then not fully).

    Telus has been comparatively a dream so far.  I am on a corporate plan with Telus, and it’s still cheaper than i was paying with rogers after doing the retentions dance many times.  This way I don’t have to fight for a decent price.  I had the option for a Rogers corporate plan too, but it was more expensive with way fewer options than the Telus corporate plan.

    Rogers fails.

  • Mark

    Loyalty pricing, here’s what I think it should mean; you get a discount for every year you remain with your current subscriber.  Pick a percentage or $ discount or some useful perk such as free call display for example, something.  They’d obviously have to cap it at whatever year, but that is the way it should work imho.  Rewarding for loyalty has gone the way of the dodo.  I’ve noticed this trend with my auto/moto insurance also.  I’ve switched companies for both the car and the bike each year for the last 3 years and have received a much better rate for doing so.

  • Dizzleskill

    i belive rogers will beat the other 2 for one reason SPEAKOUT WIRELESS they use rogers phones and give a 40$ plan with unlimited data unlimited text and 400 mins for the month unbeatable

  • Guest

    I bet u have awesome customer service 24/7, decent roaming rates, great selection of hardware down the road, Handset Protection Guarantee, good network coverage, many locations to visit for help…oh wait, that’s all Rogers. And as for “going down soon”, please head over to Rogers Wiki page and read a little bit of the history. Rogers along with all of its divisions are the reasons why we have what we have toady. …bring along all the hate. come on now. Also, Koodo isn’t going to save any lives. Nor is Bell, Telus or Rogers. There’s pros & cons to all of em…

  • JackLacost

     The thing is that if you cap it at certain point, people complaint and it starts all over again. We are human. We are cheap. We want stuff for “free”.

  • Rogers lost me as a long time customer because they didn’t prioritize my service over these new customers. When someone is locked into a contract and is told to just keep popping into a physical store daily and weekly to get a new phone (at the time, it was the iPhone 4), you realize you don’t matter to them. They were actually prioritizing on a first come, first server basis. If any random person with a credit card who happens to enter a Rogers store on the day of an iPhone shipment is given priority over someone who is locked-in as a customer, there is something wrong. I heard that this may have changed recently, but any moron could have seen this problem coming when the iPhone 3G was introduced into Canada.

  • Anonymous

    Fido’s my carrier, but I’m using an unlocked iPhone 4S with no contract.
    I like the freedom of this and going wherever I want whenever I want,
    so I’ll continue it.

Deals