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Rogers' Dynamic Data Business
By Mark Evans | February 16, 2005
For people interested in the growth of the wireless data market, take a good look at Rogers Communications' fourth-quarter results. The company's wireless unit got about $50-million of its revenue, or 6.4%, from data services such as short-text messaging, ring tones, screen savers, games and e-mail. It's these kind of services that boost the all-mighty ARPU, which warms of the hearts of analysts on Bay St. and Wall St. What's interesting about Rogers' data performance is that 60% of its revenue now comes from consumers rather than business customers - whereas it was the other way around a few years ago.
Another intriguing development is Rogers' decision to license Visto's e-mail software. Rogers Wireless CEO Nadir Mohamed said Visto is a less expensive option to provide e-mail to people who wouldn't or won't buy a Blackberry. Could this be the chink in Research in Motion's stranglehold on the wireless e-mail market? Anyone who thought carriers would be reluctant to deal with any e-mail developer other than RIM should think again when Canada's biggest wireless carrier decides to go in another direction. I'm far from being anti-RIM but the reality is there are other options out there, and competition will heat up as 3G networks put more focus on data services.
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