SpongeG
04-30-2008, 08:24 AM
Rogers' next money maker: the iPhone
CATHERINE MCLEAN
TELECOM REPORTER
April 30, 2008
When Rogers Communications Inc. brings Apple Inc.'s cult iPhone to Canada later this year, it's not just expecting a jump in subscribers but also a nice bonus from cellphone bills.
Consumers love the sleek device for its bells and whistles. But Rogers is banking on increased data traffic on the smart phones to compensate for flatter growth from voice services.
In Canada, iPhone users will probably spend $80 a month minimum, according to estimates from consulting firm Solutions Research Group. That's considerably more than the $72.39 average that customers on Rogers cellphone contracts currently part with each month.
Rogers chief executive officer Ted Rogers crowed yesterday about his latest cellphone coup as the wireless business contributed to a big jump in the company's first-quarter profit.
"We're thrilled to have announced a deal with Apple to bring the iPhone to Canada later this year," Mr. Rogers said on an earnings conference call.
He wouldn't disclose details about the launch date or rates.
Rogers has always been considered the logical choice to carry the iPhone in Canada. It's the only carrier that owns a GSM network, the technology the device runs on and the world wireless standard.
But Canadians have had to wait and watch as the coveted iPhone was launched south of the border and then in Europe. Speculation about the delay includes the possibility that Rogers may be less than keen on changing its data rate plans as other carriers have done.
Mr. Rogers offered his own reason for the wait. "We're a little slow, I guess, in negotiating is all I can say," he said yesterday at a press conference before the company's annual shareholder meeting.
The iPhone gives Rogers a unique product to attract consumers just as rivalry heats up in the wireless market. Ottawa plans to auction off new wireless spectrum, or airwaves, next month, and a portion are reserved for new entrants.
Rogers, already expecting to add more than 600,000 wireless customers this year, could sign an additional 100,000 thanks to the iPhone, according to National Bank Financial analyst Greg MacDonald.
The iPhone may also boost customers' monthly bills as they spend more money on features such as wireless Internet access or music.
So-called smart phones that offer a range of data features, including the iPhone and the popular BlackBerry, are fuelling wireless growth.
Consumers are starting to follow business users, doing much more on their cellphones than just making calls. These include sending text messages and buying ring tones, games and music.
That trend was evident in Rogers' first-quarter results yesterday. The Toronto-based company reported that monthly bills for cellphone subscribers on contracts jumped $4.75 to $72.39 due to greater data service demand.
The typical profile of an iPhone buyer in Canada will probably be under 34 years of age, according to Solutions Research Group. About 43 per cent of iPhone customers will already be with Rogers, while 22 per cent will come from Bell and another 9 per cent with Telus, the consulting firm said.
Still, consumers can be fickle, and one device won't rule forever. Geoff Teehan, a 33-year-old partner at a website design firm called Teehan+Lax in Toronto, bought his iPhone in the U.S. last year and used software to unlock it and run it on the Rogers network.
He says the iPhone is better than other cellphones for browsing the Internet, and he also likes carrying just one device instead of both his cellphone and iPod. "It's really something actually," he said.
But another device has caught his eye. There is a lot of speculation online about the coming "BlackBerry 9000" device that is rumoured to work on speedier third-generation or 3G networks.
"I would probably switch again and try that device out," Mr. Teehan said.
Ireland
The Irish reaction to the iPhone launch was subdued. Most stores had less than a dozen fans in line, while one Irish newspaper called the launch "something of a damp squib." :haha: squib
U.S.
iPhone mania hit the U.S. on June 29, 2007, and within two days, more than 270,000 had been sold, beating expectations of 200,000.
France
French iPhone carrier Orange sold more than 30,000 of the devices in its first five days of sales after launching on Nov. 29, 2007.
Austria
In February, a Vienna-based trio known as iBand became a YouTube sensation with "Life is greater than the Internet," which the band played using only three unlocked iPhones.
Germany
Vodafone took German iPhone carrier T-Mobile to court to challenge its exclusivity deal with Apple. A temporary injunction forcing T-Mobile to sell unlocked phones was eventually overturned.
Britain
UK carrier O2 has experienced slower-than-expected iPhone sales due to the relatively high cost, and the fact that customers aren't used to buying their devices, only paying for service.
TONIA COWAN/THE GLOBE AND MAIL
http://www.theglobeandmail.com/servlet/story/LAC.20080430.RROGERS30/TPStory/Business
CATHERINE MCLEAN
TELECOM REPORTER
April 30, 2008
When Rogers Communications Inc. brings Apple Inc.'s cult iPhone to Canada later this year, it's not just expecting a jump in subscribers but also a nice bonus from cellphone bills.
Consumers love the sleek device for its bells and whistles. But Rogers is banking on increased data traffic on the smart phones to compensate for flatter growth from voice services.
In Canada, iPhone users will probably spend $80 a month minimum, according to estimates from consulting firm Solutions Research Group. That's considerably more than the $72.39 average that customers on Rogers cellphone contracts currently part with each month.
Rogers chief executive officer Ted Rogers crowed yesterday about his latest cellphone coup as the wireless business contributed to a big jump in the company's first-quarter profit.
"We're thrilled to have announced a deal with Apple to bring the iPhone to Canada later this year," Mr. Rogers said on an earnings conference call.
He wouldn't disclose details about the launch date or rates.
Rogers has always been considered the logical choice to carry the iPhone in Canada. It's the only carrier that owns a GSM network, the technology the device runs on and the world wireless standard.
But Canadians have had to wait and watch as the coveted iPhone was launched south of the border and then in Europe. Speculation about the delay includes the possibility that Rogers may be less than keen on changing its data rate plans as other carriers have done.
Mr. Rogers offered his own reason for the wait. "We're a little slow, I guess, in negotiating is all I can say," he said yesterday at a press conference before the company's annual shareholder meeting.
The iPhone gives Rogers a unique product to attract consumers just as rivalry heats up in the wireless market. Ottawa plans to auction off new wireless spectrum, or airwaves, next month, and a portion are reserved for new entrants.
Rogers, already expecting to add more than 600,000 wireless customers this year, could sign an additional 100,000 thanks to the iPhone, according to National Bank Financial analyst Greg MacDonald.
The iPhone may also boost customers' monthly bills as they spend more money on features such as wireless Internet access or music.
So-called smart phones that offer a range of data features, including the iPhone and the popular BlackBerry, are fuelling wireless growth.
Consumers are starting to follow business users, doing much more on their cellphones than just making calls. These include sending text messages and buying ring tones, games and music.
That trend was evident in Rogers' first-quarter results yesterday. The Toronto-based company reported that monthly bills for cellphone subscribers on contracts jumped $4.75 to $72.39 due to greater data service demand.
The typical profile of an iPhone buyer in Canada will probably be under 34 years of age, according to Solutions Research Group. About 43 per cent of iPhone customers will already be with Rogers, while 22 per cent will come from Bell and another 9 per cent with Telus, the consulting firm said.
Still, consumers can be fickle, and one device won't rule forever. Geoff Teehan, a 33-year-old partner at a website design firm called Teehan+Lax in Toronto, bought his iPhone in the U.S. last year and used software to unlock it and run it on the Rogers network.
He says the iPhone is better than other cellphones for browsing the Internet, and he also likes carrying just one device instead of both his cellphone and iPod. "It's really something actually," he said.
But another device has caught his eye. There is a lot of speculation online about the coming "BlackBerry 9000" device that is rumoured to work on speedier third-generation or 3G networks.
"I would probably switch again and try that device out," Mr. Teehan said.
Ireland
The Irish reaction to the iPhone launch was subdued. Most stores had less than a dozen fans in line, while one Irish newspaper called the launch "something of a damp squib." :haha: squib
U.S.
iPhone mania hit the U.S. on June 29, 2007, and within two days, more than 270,000 had been sold, beating expectations of 200,000.
France
French iPhone carrier Orange sold more than 30,000 of the devices in its first five days of sales after launching on Nov. 29, 2007.
Austria
In February, a Vienna-based trio known as iBand became a YouTube sensation with "Life is greater than the Internet," which the band played using only three unlocked iPhones.
Germany
Vodafone took German iPhone carrier T-Mobile to court to challenge its exclusivity deal with Apple. A temporary injunction forcing T-Mobile to sell unlocked phones was eventually overturned.
Britain
UK carrier O2 has experienced slower-than-expected iPhone sales due to the relatively high cost, and the fact that customers aren't used to buying their devices, only paying for service.
TONIA COWAN/THE GLOBE AND MAIL
http://www.theglobeandmail.com/servlet/story/LAC.20080430.RROGERS30/TPStory/Business
