TORONTO—Canadian telecom company Rogers Communications Inc. increased its wireless postpaid average revenue per user by more than 5 percent, citing data revenues for the boost. However, its net postpaid customers were down by more than 12 percent compared to the same period last year.
The carrier reported that the ARPU increase was due to a nearly 48-percent jump in data revenues, which now make up 10.5 percent of total wireless network revenue. Roaming and optional voice services also contributed to the increase.
Rogers’ wireless segment saw operating revenue increase more than 18 percent compared to the same period last year, climbing to about $1.1 billion. Wireless operating profit was up 47 percent year-over-year, to about $494 million.
The carrier added just over 200,00 net subscribers; about 171,000 were postpaid customers, and nearly 32,000 were prepaid. Rogers’ gross additions were down nearly 7 percent, and net postpaid adds decreased by about 12 percent from about 195,000 customers in 2005’s third quarter. But Rogers’ prepaid numbers boomed from 18,000 subscriber additions in the year-ago period.
Prepaid churn was up slightly, from 3.4 percent in 2005’s third quarter to 3.5 percent in 2006’s third quarter. Postpaid wireless churn was down from 1.5 percent in 2005’s third quarter to 1.3 percent in 2006. Rogers reported a wide difference in postpaid vs. prepaid ARPU: its postpaid customers spending $61.99 per month, up from $58.87 a year ago. Meanwhile, prepaid ARPU was only $12.87, although that also was up more than 5 percent from the $12.25 recorded in the same period in 2005.
Rogers ended the quarter with about 6.5 million total wireless customers. The company credited promotional offers for its increase in prepaid customers, saying that it was trying to stem prepaid losses from earlier in the year.
“While we have much work and investment in front of us and competition continues to be intense, the solid operating results from our businesses are combining to drive increasing levels of cash flow and are positioning us increasingly well for continued success,” said Ted Rogers, the company’s president and chief executive officer.
Separately, Rogers announced it launched Canada’s first HSDPA network in the greater Toronto area and laid out plans to expand the network to the country’s top 20 markets throughout next year.
Along with voice services, the HSDPA network offers subscribers the ability to download data and access the Internet at broadband speeds.
Rogers is offering laptop data access cards from Sierra Wireless for $50 with a three-year contract or $350 with a one- or two-year contract. For the time being, Rogers is offering unlimited e-mail and browsing for three months on data plans of $60 or more per month.
“For mobile workers, HSDPA is the great equalizer,” said John Boynton, senior vice president and chief marketing officer of Rogers Wireless. “Whether you’re in the office or on the road will no longer dictate how fast you can access your data. From now on, wireless subscribers can enjoy high-speed mobile Internet and multimedia downloads at speeds previously possible only on a wired connection.”
Rogers competes against carriers Telus Mobility and Bell Canada, both of which have launched CDMA2000 1x EV-DO networks in several markets across Canada. Cingular Wireless L.L.C. in the United States is in the process of rolling out its own HSDPA network.
