Rogers released its quarterly numbers and Bay Street appears to be overjoyed. The stock immediately rose 10%.
Lots will be written about the various parts of Rogers that contributed to these quarterly numbers. I want to point out a couple little numbers that may get missed – a sign of the times.
One way messaging – paging – is down 20% compared to second quarter of 2005 and down 25% when we look at the first half of the year. Strangely, revenues actually rose 15% quarter over quarter – which may be a revenue recognition issue.
Are one-way pagers an artifact of the days before downloadable ringtones? What is the substitute – PDAs or text messaging? Are customers staying with Rogers when they terminate their paging contract?
An important measure for service providers is their ability to upgrade users from legacy products and retain them on their own upgraded product line. Any time that a user makes a change, there is an opportunity for the competition to take advantage of the decision to make a new purchase.
Like Physics 101, we’ll be looking through the carriers’ numbers this week to study the changes in inertial energy.
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