Rogers, Sprint Join Forces

Zacks

Canada’s largest wireless network operator, Rogers Communications Inc. (RCI) has collaborated with U.S. telecom major Sprint Corp. (S) to offer telematics services in Canada.

Sprint’s telematics service, known as “Sprint Velocity,” will provide seamless connectivity to vehicles under Rogers’ wireless network. The connected service will include news, weather, sports, navigation, climate control, security, emergency services and vehicle diagnostics. These services can be availed through an in-dash touch screen system in the vehicle.

Sprint Velocity is also a provider of connectivity for mobile devices in the car including smartphones and tablets. All the connected services are available with an in-dash touch screen. Sprint Velocity, the global end-to-end automotive systems solution, allows vehicle manufacturers to develop and market connected services for cars as well as passenger trucks.

Rogers leads the Canadian market in delivering Machine-to-Machine (M2M) and wireless business solutions.

As per industry research, there will be nearly 100 million connected cars on the road by the end of 2016. Moreover, by 2021, higher adoption of connected cars will allow the automotive and transport sector to gain significant revenues related to the connectivity service, thus driving growth for Rogers.

We also believe that the demand for connected cars is likely to show a steep rise in the future because of its advanced features, thereby contributing to top line growth for Rogers. Moreover, the company will also gain a competitive edge against other Canadian carriers like TELUS Corporation (TU) and BCE Inc. (BCE).

Currently, Rogers Communications has a short-term Zacks Rank #4 (Sell).

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