Yahoo Finance Rogers (RCI) Acquires BAI Canada to Bring 5G to Subway System
Rogers Communications RCI recently entered into an agreement to purchase BAI Communications' Canadian operations to bring 5G wireless services to Toronto's subway system. The terms of the agreement and the deal’s value were not disclosed.
In 2012, BAI was awarded a $25-million contract by the TTC to build and operate its public Wi-Fi and cellular network.
With the acquisition of BAI, Rogers aims to invest in building a comprehensive and reliable 5G network for the entire TTC subway system. The company claims the investment will bring 911 coverage to the whole system.
The deal could resolve a long-standing impasse that has left almost all TTC riders without cell service underground despite serious public safety concerns, including four homicides on the transit system in the past year.
Freedom Mobile is the only telecom company that has signed on to provide coverage to its customers through BAI’s network, meaning most mobile customers have little to no service along the subway line.
Rogers Communication, Inc. Price and Consensus
Rogers Communication, Inc. price-consensus-chart | Rogers Communication, Inc. Quote
Strengthening Wireless Internet Businesses to Aid Growth
Rogers Communications is expected to benefit from the continued strong demand for data by consumers and businesses. An improving wireless penetration rate is anticipated to boost the subscriber base.
In February, 2023 Rogers joined Microsoft MSFT to announce an exclusive Canadian partnership for the private preview of Azure Programmable Connectivity, a solution for developers to build 5G network-aware applications.
This Zacks Rank #3 (Hold) company expects the demand for broadband data to witness growth of about 30% per year. Rogers Communications currently offers 1 gigabyte speed to its user base. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The company continues to benefit from Internet subscriber additions and the shift of Internet users to higher-usage tiers. As of Dec 31, 2022, the prepaid subscriber base totaled almost 1.25 million, highlighting an addition of 89K subscribers from the year-ago quarter’s levels. The postpaid wireless subscriber base totaled 9.39 million, up 545K from the year-ago quarter’s levels.
Rogers is looking to reap benefits from its takeover of Shaw, which would bring down the number of telecoms from four to three in Canada. The other two telecommunication giants are Bell Canada Enterprise BCE and Telus Corp. TU.
Telus recently completed the $1.2 billion acquisition of WillowTree. This would further strengthen its position in CX and UI. It would also enhance its ability to cross-sell products to mutual customers.
Bell previously made an offer to Shaw, which was better than Roger, but that deal didn’t materialize.
Rogers is currently focusing on making Internet accessible to lesser connected parts like the Town of Lincoln, Essex Centre and Harrow.
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