Rogers Communications (RCI) 29th Annual Scotiabank TMT Conference summary

Regulatory and industry environment

• MVNO regime in Canada requires participants to build their own networks within seven years, aiming to avoid a permanent wholesale model and encourage capital investment in infrastructure.

• Examples from Europe and the U.S. show that MVNO models often discourage network investment, leading to a focus on wholesale rather than retail competition.

• Regulatory balance is needed to ensure continued investment in world-class networks, crucial for economic growth and connectivity, especially as data demand rises.

Capital expenditure and growth strategy

• CapEx is being reduced from CAD 4 billion to a guidance of CAD 3.3-3.5 billion for 2026, but investment in networks continues to support data growth and EBITDA targets.

• Focus remains on growing revenue, prioritizing investments that drive growth, and balancing CapEx intensity with service revenue expansion.

Market trends and competitive dynamics

• Wireless subscriber growth in Canada is slowing, with penetration gains leading to 2.5% growth in 2025 and expectations of 2% for 2026 due to low population growth.

• Heavy price discounting emerged after Black Friday, with some competitors reacting to system outages and negative net adds, leading to lower plan prices and higher data allowances.

• Strategy emphasizes premium brand and postpaid customers, with selective participation in prepaid and flanker brands to manage churn and customer lifecycle.