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Rogers Faces Declining ARPU, Net Adds

By Staff Author | February 17, 2010

Canadian operator Rogers Communications reported that it had a difficult fourth quarter despite a slight uptick in sales.

The company said its net postpaid subscriber additions were down 49 percent to 109,000 as it struggles to compete against other carriers’ pricing on roaming and long-distance charges. Rogers also said postpaid APRU fell by $1.41 to $73.42 as customers cut down on their voice usage.

Overall, the company’s wireless segment posted a 5 percent increase in sales, brining revenue to $1.73 billion. Rogers said data revenue grew 45 percent in the fourth quarter as the activation of 400,000 smartphones helped spur growth.

Subscribers with smartphones now represent 31 percent of the operator’s postpaid subscriber base and data revenue comprises 24 percent of the segment’s revenue, or $384 million. Smartphone subscribers generate nearly twice the sales of voice-only customers, said Rogers.

Rogers’ results were similar to those of rival Canadian operator Telus, which recently reported declines in net adds, sales and ARPU.

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