Rogers Communications (RCI) CIBC Eastern Institutional Investor Conference summary

Wireless market environment

• Back-to-school promotions launched earlier, focusing on premium service and familiar price points, with less discounting compared to previous quarters.

• Sector-wide, volumes are down due to lower international student population and muted customer growth, leading to a focus on base management and ARPU support.

• Regulatory prohibition of activation fees is impacting ARPU, with efforts underway to offset costs through delivery charges and other means.

• Churn remains roughly flat year-over-year, with minor increases attributed to price actions.

• Market stability is improving as discounting pressure eases and price actions support revenue.

Satellite and fixed wireless strategy

• Satellite technology, particularly through partnership with SpaceX, is viewed as complementary, extending coverage to remote areas where building towers is uneconomical.

• Satellite coverage currently supports texting and app-based calls, with future upgrades planned for direct 5G calling outside wireless coverage.

• No significant competition from Starlink in rural broadband; satellite is used to supplement coverage for resource sector workers and remote areas.

• Fixed wireless enables bundled broadband and mobile services across Canada, supporting growth in areas outside traditional wireline footprint.

• Fixed wireless is reliable and expands bundling opportunities, with ongoing investment in spectrum and tower capacity to meet rising data demand.

Wireline and bundling growth

• Bundled service opportunities now cover about 60% of homes on owned networks, with fixed wireless reaching most of the remaining 40%.

• Bundling provides a competitive advantage over peers, who face geographic and partnership constraints.

• Revenue growth in cable has shifted from a 4% decline to around 1% growth, driven by base management and price actions.

• Sustained modest growth is expected, with larger opportunities tied to future population increases, potentially from 2028 onward.