Wednesday, July 27, 2011

Less chat means less profit for Rogers

More than nine million Canadians now own a mobile phone on Rogers Communications Inc.’s wireless network, but they aren’t doing much talking. Rogers reported a modest decrease in second-quarter profit, earning $410-million, down 9 per cent from the year before. The results beat the estimates of Bay Street analysts, but also exposed a worrying decline in the average monthly bill for wireless customers, which slipped 4.8 per cent. Cellphone users are texting more and making greater use of e-mail, the Web and Internet video on their handsets, giving a boost to data revenues. But there is a concern that more customers are not using their Rogers phones to actually talk, crimping an important source of wireless revenue. The trend is industrywide.

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