Rogers face new competitors

http://www.bloomberg.com/apps/news?pid=20601082&sid=aLAJga4BJb4U

By Hugo Miller
Sept. 15 (Bloomberg) -- Rogers Communications Inc., Canada’s largest wireless carrier, is “well-prepared” to meet the challenge of increased competition, according to the president of its mobile division.

“Our workforce has experience handling competition,” Rob Bruce said at a conference in Toronto today. “We’re well- prepared for new entrants.”

Rogers, the only Canadian carrier of Apple Inc.’s iPhone, will add at least one of Motorola Inc.’s phones based on Google Inc.’s Android software in 2010 to attract new customers as new carriers prepare to enter the market.

Three companies including Public Mobile Holdings Inc. plan to offer Canadians wireless service in 2010. Public Mobile has said it will offer a C$40 ($37.30) plan that includes unlimited local calls and text messaging to attract cost-conscious customers.

Rogers, which also publishes magazines and offers cable television, fell 26 cents to C$30.41 at 4:10 p.m. in Toronto Stock Exchange trading.

To contact the reporter on this story: Hugo Miller in Toronto at hugomiller@bloomberg.net Last Updated: September 15, 2009 16:24 EDT

Bilibala comments:
As a consumer, i am glad to have more choices in terms of wireless carrier.
As an investor, i think Rogers will keep its market share and strong position at least in short run and medium term, thanks to the bundling discount policy, switching from one carrier to another is not an easy task. And secondly, beofer the new carriers build up their own nationalwise network structure (it will take at least 10 years), they actually need to lease the network/service from the existing carriers (Rogers, Bell or Telus), which will in fact benefit the industry as a whole. Of course, the industry ARPU may drop due to the lease.