Rogers Communication (RCI) to Deploy Satellite Tech in 2024
Rogers Communication RCI has announced its intention to introduce satellite-to-mobile phone technology in 2024, providing wireless services to Canada's remote regions. The telecommunications firm, in collaboration with Lynk Global Inc., revealed the initiative for conducting a successful satellite-to-mobile phone call test in Newfoundland and Labrador.
The scheduled 2024 launch will initially focus on SMS texting, with plans to incorporate voice and data services. This development will enable any standard smartphone to access 911 services.
The technology utilizes Lynk's low-earth orbit satellites in conjunction with Rogers' national wireless spectrum, thus allowing it to function seamlessly on existing smartphones without the need for custom applications or hardware upgrades. This enables users to make calls in areas lacking terrestrial cellular wireless coverage from any mobile operator.
In April, Rogers disclosed agreements with Lynk and Elon Musk's Space Exploration Technologies Corp. (SpaceX) to implement satellite-to-phone coverage throughout Canada. The collaboration with SpaceX involves utilizing its Starlink low-earth-orbit satellites along with Rogers' national wireless spectrum. This technology is designed to extend coverage to areas beyond the reach of conventional wireless networks, starting with satellite coverage for SMS text and subsequently expanding to include voice and data.
Rogers Communication, Inc. Price and Consensus
Rogers Communication, Inc. price-consensus-chart | Rogers Communication, Inc. Quote
Roger’s Recent Investments to Aid Subscriber Growth
Rogers is dedicated to providing Canadians with top-tier networks globally. The company consistently reinvests 90% of its annual profits back into Canada. Since 1985, Rogers has allocated more than $40 billion to establish a comprehensive national wireless network that caters to the entire Canadian population.
Rogers Communications recently revealed its success in obtaining nationwide 5G spectrum once again, securing 3800 MHz in Canada's third 5G spectrum auction. This acquisition aims to enhance coverage, speed and capacity on Canada's largest and most reliable 5G network, benefitting Canadians across various regions.
The investment involved $475 million for 40.5 MHz of 3800 MHz spectrum at a rate of 0.32 cents per MHz/POP, covering 172 regions available in the spectrum auction. The newly acquired 3800 MHz spectrum will complement Rogers' existing industry-leading 3500 MHz 5G spectrum, extending coverage beyond urban areas to include rural and indigenous communities nationwide.
These new investments are expected to aid wireless postpaid as well as prepaid subscribers in the upcoming quarters.
The Zacks Consensus Estimate for RCI’s 2023 wireless postpaid subscribers is pegged at 6.88 million, indicating year-over-year growth of 26.2%. The consensus estimate for wireless prepaid subscribers is pegged at 8.58 million, indicating year-over-year growth of 7.8%.
Shares of this Zacks Rank #3 (Hold) company have declined 1.9% in the past year against the Zacks Consumer Discretionary sector’s 16.2% rise due to fierce competition from BCE BCE and Telus TU in the field of telecommunication, and Disney’s DIS ESPN in the field of sports television.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BCE has established a strong reputation for reliability within the telecommunications sector. Known for offering a broad range of services, including mobile, home phone, Internet and television, Bell is the preferred choice for individuals prioritizing quality and dependability. The company's commitment to providing premium services positions it as a trustworthy option for customers seeking consistent and reliable telecommunications solutions at the highest level.
Telus Mobility places a strong emphasis on the quality of its network and delivering exceptional customer service. The company provides a range of services, including mobile phone plans, home Internet and TV services. Additionally, Telus is distinguished by its commitment to offering outstanding customer support and prioritizing the prompt and efficient resolution of customer issues, which has earned the company a reputation for superior service in the industry.
ESPN, a well-known sports channel based in the United States, has a widespread international presence. The network has formed partnerships with major sports leagues, including the NHL, Major League Baseball, college football and the NFL. In the Canadian market, ESPN gives tough competition to Rogers Sports & Media, which is a leading company in the market and is known for its exceptional content.
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