Rogers to expand Alberta cell network up to $700-million

Rogers Communications Inc. is planning to invest $700-million for its local network in the province of Alberta

Rogers found out that on average, Albertans have the highest monthly bill (including voice and date services) than subscribers in any other part of the country, making the province a key battleground as Canadian cellphone carriers try to expand its users in the increasingly fierce cellphone market. Statistics have indicated that the revenue per Albertan is $75.26, which is far greater than the national average of $57.94. In addition, the province also has the highest household income.

On Tuesday, Rogers  claimed that the money would be spent to upgrade its wireless network across the province, add 50 more stores to bring its total to 150 (Telus has more 200+, while Bell will have 150 by the December, 2013), and sponsor the National Hockey League’s Edmonton Oilers.

Despite the fact that Rogers is the largest national wireless carrier, Telus currently owns more than 50% of the market shares in Alberta, with Rogers and Bell sharing the equal amount of the rest. While Rogers is said to invest $700 millions within the next 4 years, Telus will spend the same amount this year alone! (although its spending also includes the infrastructure needed to expand its IPTV television service). It says its network reaches 99 per cent of Alberta’s population, which is where Rogers hopes to be at the end of its four-year investment.

Facing such a strong competitor, Rogers will have a hard time in the future. Will Rogers grab users away from Telus in the future and successfully become the biggest shareholder in Alberta? We shall wait and see.

 

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