Rogers Sees Wireless Pricing Discipline, Eyes Satellite and Sports Growth

Wireless pricing is stabilizing: Rogers is prioritizing premium offerings, base management and measured price increases over aggressive discounting, although weaker customer growth and regulatory limits on setup fees may pressure ARPU.

Satellite and bundling offer growth opportunities: Rogers views SpaceX satellite connectivity as a complement to its network for remote coverage, while expanded cable-wireless bundles and fixed wireless are supporting modest cable growth and new customer opportunities.

Sports assets and lower capital intensity are strategic priorities: Rogers expects to acquire the remaining 25% of Maple Leaf Sports & Entertainment, enabling greater integration with Sportsnet and other sports assets, while maintaining 2026 capital spending guidance of C$2.5 billion to C$2.7 billion.

Rogers Communication CFO Glenn Brandt said the Canadian wireless market showed signs of greater pricing discipline during the second and third quarters after heavy discounting earlier in the year contributed to higher churn across the sector. Speaking at a CIBC conference, Brandt said Rogers launched its back-to-school promotions in July and emphasized feature-rich premium offerings at familiar market price points rather than deeper discounts. He said subscriber volumes during the back-to-school period have been more muted than in previous years, reflecting a decline in the international student population and lower overall new-customer activity.

“In that environment, there’s no sense chasing volume,” Brandt said, describing the company’s focus as base management, penetration gains and measured price actions. Rogers’ churn was roughly flat year over year, though modestly higher because of a price action taken during the quarter, he said.

Brandt said regulatory restrictions on subscriber setup fees will pressure industry average revenue per user, or ARPU, during the current quarter and likely into the fourth quarter. Rogers and other operators are evaluating ways to recover some of the underlying costs associated with setting up phones and delivering devices without “shocking the buyer,” he said. While the sector remains competitive, Brandt said reduced discounting and Rogers’ pricing actions have contributed to greater market stability than in prior quarters.

On satellite connectivity, Brandt said Rogers views SpaceX as a complementary technology rather than a direct competitor. Rogers has an arrangement with SpaceX to provide satellite-to-mobile backup coverage between the 49th and 58th parallels, from the Pacific to the Atlantic. Rogers’ mobile network covers roughly 99% of Canada’s population but about 12% of the country’s land mass, according to Brandt. Satellite connectivity can extend service into remote areas where building wireless towers would be less economical. The current offering supports texting, maps, applications and calls through WhatsApp, he said, while a future version is expected to provide 5G satellite-to-mobile backup for direct calling outside traditional wireless coverage areas. Brandt said satellite service has limitations in dense urban environments and indoor settings because users need a clear path to a satellite. He also said satellite capacity would be insufficient to serve a city or town with a large population at the same level as terrestrial cell towers.

Brandt said the Shaw acquisition has expanded Rogers’ ability to bundle wireline and wireless services across Br...