Rogers Communication Inc.
), one of the leading telecom carriers of Canada, has launched a
new broadband-based Internet pilot project that is aimed at
providing Internet access to youth and to low income
The initiative is known as 'Connected for Success' and is part
of Rogers Youth Fund program. The project will begin later this
year and will bring affordable Internet and other technical
support services to Toronto Community Housing (TCH). Notably, TCH
is the largest social housing provider in Canada with 58,000
homes and 170,000 residents.
Under the pilot project, the eligible residents of TCH will
get Internet access for C$9.95 with a download speed of 3
Mbit/sec and up to 30 GB of usage allowance. Rogers has also tied
) Canadian subsidiary and Compugen that will allow TCH residents
to buy computers for C$150. Additionally, the computer will be
integrated with complementary software and buyers will receive
special technical support.
However, residents receiving rent subsidies will be eligible
for the program, which represents about one-thirds of the TCH
households. Toronto-based Rogers also plans to expand its program
in Ontario and Atlantic Canada service footprint.
Within a year, this is the second initiative by Rogers to
bridge the digital divide after it launched Rogers Youth Fund and
Tech Essentials. Both the programs aim at increasing digital
literacy and have seen participation from 85,000 students over
the last one year.
Although Connected for Success is first of its kind in Canada,
it is already present in the U.S. through Connect2Compete, which
was established in late 2011.The program has several big
companies as its national partners including the largest U.S.
). This initiative also provides broadband access at $9.95 to low
income communities along with providing computers and technical
support at a nominal price.
Connected for Success aims to bring broadband connection to
the people of Canada, who cannot afford the high monthly cable
fees of $35- $45. Consequently, this will enhance Rogers'
customer base. With only 20% of Canada's low income families
accessing the Internet, we believe that Rogers' latest project
will offer network connectivity to more people
Currently, Rogers carries a Zacks Rank #3 (Hold). Among other
) carries a Zacks Rank #2 (Buy) and is worth considering.
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