Rogers Communications Inc.
) has decided to drive its wireless network deployment plan in
British Columbia in collaboration with Premier Christy Clark by
investing $450 million in the next three years.
Rogers plans to cover nearly 70 areas in the northeast, Interior,
Lower Mainland, and Vancouver Island. The investment also takes
into account the company's 700 MHz 4GLTE rollout plan which will
help subscribers enjoy enhanced Internet speed even in remote
places like basements and elevators.
Higher proliferation of smartphones and tablets coupled with the
aggressive rollout of 4GLTE technology by rival players like
) will not only spur demand but will also intensify competition
between telecom operators.
Moreover, British Columbia boasts one of the highest penetration
rates in Canada with 64% smartphone users accounting for an average
daily usage of 1.7 hours. Out of the total, 77% usage is allotted
to emails, 69% to online search and 335 to video streaming. In
addition, British Columbia's 385,900 small businesses communities
are highly dependent on efficient network service which will
significantly benefit from Rogers's 700 MHz 4GLTE technology.
In the recently concluded first quarter of 2014, Rogers's Wireless
segment revenues came in at $1,567.3 million, down 2% year over
year. During the quarter, the company activated 579,000 smartphones
against 673,000 in the year-earlier quarter.
Hence, we remain highly optimistic about the company's decision to
aggressively deploy wireless network across the lucrative market of
British Columbia. This strategic decision by Rogers will not only
drive Wireless segment revenues but will also help Rogers to take
unprecedented lead over other carriers.
Rogers currently has a Zacks Rank #5 (Strong Sell).
Other Stocks to Consider
Other well-performing stocks in this industry that warrants a look
Shaw Communications Inc.
) which has a Zacks Rank #2 (Buy).
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