Rogers Communications Inc.(RCI) has recently launched a comprehensive technical trial for its next-generation (4G) super-fast Long-term Evolution (LTE) network in Ottawa. The company is conducting LTE trials using the network infrastructure of LM Ericsson AB (ERIC). Rogers is using the AWS spectrum for this trial run, which it acquired through a recent auction. Additionally, the company is also trying hard to secure a 700 MHz spectrum, which is best suitable for the LTE network.
Rogers’ Wireless operations, which account for more than half of the company’s total revenues and 66.5% of its EBITDA, are well positioned with the lead share (37%) of the Canadian market. Wireless penetration in Canada is little more than 60%, providing significant growth opportunities for the well-positioned Canadian operators. As the only Canadian carrier using GSM, Rogers is uniquely positioned to capture roaming revenues from foreign visitors. The HSDPA network and related advanced services are available in 25 markets, representing nearly 76% of the Canadian population. Rogers has also launched a super fast HSPA+ network with 21 Mbps data speed.
During the second quarter 2010, Wireless segment activated around 385,000 smart-phone devices (up 10.63% sequentially) including iPhone, BlackBerry devices, and several Android-based phones. Smartphone customers now constitute 35% of total Postpaid subscribers compared to 25% in the year-ago quarter. In the same quarter, wireless data revenues were $436 million, up 39% year-over-year and represent 27% of total Wireless segment revenues.
Recently, Rogers entered an agreement to acquire privately held Atria Networks LP, the largest fiber-optic network operator in Ontario. The deal size is $425 million in cash, subject to certain closing adjustments; the deal is expected to be completed by the end of the first quarter of 2011. The proposed acquisition will enhance Rogers’ Business Solutions offerings since it will be able to deliver on-net data centric services within and adjacent to its cable networks.
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