Rogers Communication (NYSE:RCI) CFO Glenn Brandt said the Canadian wireless market showed signs of greater pricing discipline during the second and third quarters after heavy discounting earlier in the year contributed to higher churn across the sector.
Speaking at a CIBC conference, Brandt said Rogers launched its back-to-school promotions in July and emphasized feature-rich premium offerings at familiar market price points rather than deeper discounts. He said subscriber volumes during the back-to-school period have been more muted than in previous years, reflecting a decline in the international student population and lower overall new-customer activity.
Wireless Fees and Satellite Coverage
Brandt said regulatory restrictions on subscriber setup fees will pressure industry average revenue per user, or ARPU, during the current quarter and likely into the fourth quarter. Rogers and other operators are evaluating ways to recover some of the underlying costs associated with setting up phones and delivering devices without “shocking the buyer,” he said.
While the sector remains competitive, Brandt said reduced discounting and Rogers’ pricing actions have contributed to greater market stability than in prior quarters.
On satellite connectivity, Brandt said Rogers views SpaceX as a complementary technology rather than a direct competitor. Rogers has an arrangement with SpaceX to provide satellite-to-mobile backup coverage between the 49th and 58th parallels, from the Pacific to the Atlantic.
Rogers’ mobile network covers roughly 99% of Canada’s population but about 12% of the country’s land mass, according to Brandt. Satellite connectivity can extend service into remote areas where building wireless towers would be less economical. The current offering supports texting, maps, applications and calls through WhatsApp, he said, while a future version is expected to provide 5G satellite-to-mobile backup for direct calling outside traditional wireless coverage areas.
Brandt said satellite service has limitations in dense urban environments and indoor settings because users need a clear path to a satellite. He also said satellite capacity would be insufficient to serve a city or town with a large population at the same level as terrestrial cell towers.
Bundling, Fixed Wireless and Cable Growth
Brandt said the Shaw acquisition has expanded Rogers’ ability to bundle wireline and wireless services across British Columbia, Alberta, Ontario and Atlantic Canada. On Rogers’ own networks, the company can offer both services to about 60% of homes, he said, while fixed wireless can reach nearly all of the remaining 40%.
He characterized the bundle as an advantage relative to Canadian peers whose wireline footprints are more regionally concentrated. Rogers has found modest cable revenue growth through bundling, base management and selective price actions, Brandt said. He said cable revenue had been declining by nearly 4% when the Rogers-Shaw transaction closed but is now generally growing at about 1%.
Fixed wireless represents a significant expansion opportunity, Brandt said, although the company must continue to add spectrum and radio capacity to accommodate rising data usage and new customers. He said Rogers is not able to serve every home in a region through fixed wireless but can use the technology to create additional greenfield growth opportunities across the country.
AI, MLSE and Capital Spending
Brandt said Rogers is in the early stages of deploying artificial intelligence across network operations and customer service. Potential uses include summarizing customer account histories, helping call-center employees identify possible solutions and improving network management. The company’s emphasis is on service improvements and cost reduction, he said.
He also said Rogers expects to close its acquisition of Kilmer Sports Inc.’s remaining 25% interest in Maple Leaf Sports & Entertainment, subject to league approvals, potentially early in the fourth quarter. Rogers already controls MLSE through its 75% interest and would own the company outright after closing.
Brandt said the company then plans to combine its Rogers Sports & Media operations, including Sportsnet and Sportsnet+, with the Toronto Blue Jays, Rogers Centre and MLSE assets. He cited potential revenue and cost synergies from operating major Toronto sports franchises and entertainment venues within one organization.
Finally, Brandt reiterated Rogers’ 2026 capital-spending guidance of C$2.5 billion to C$2.7 billion and said the lower capital intensity is expected to be sustained. He said future large-scale infrastructure projects, including potential national fiber initiatives, may increasingly draw on outside infrastructure capital rather than Rogers’ balance sheet.
About Rogers Communication (NYSE:RCI)
Rogers Communications Inc is a Canadian communications and media company headquartered in Toronto, Ontario. Through its wireless and cable businesses, the company provides mobile voice and data services, high-speed internet, television, home phone and related connectivity services to consumers, businesses and public-sector organizations across Canada.
Rogers also operates media and entertainment businesses, including Sportsnet television and digital networks, radio stations and related publishing and digital properties.
