Canada's Rogers Keeps Gap with Bell to over 1m, As Telus Closes Up

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Note -- this news article is more than a year old.

Canadian market leader Rogers Wireless has maintained its lead over Bell Mobility at over 1m customers despite being outperformed by its arch rival in terms of proportionate growth for the first time in five quarters. Quarter on quarter growth at Rogers fell to an all time low of just 0.7% in Q2 2007 whilst Bell Mobility recovered from its first ever negative quarter in Q1 2007 to post growth of 1.1%. This reduced Rogers' lead over Bell from 1.043m to 1.028m customers as it moved onto a total of 6.91m to Bell's 5.88m. As the market leader has opened up its lead over Bell over the last couple of years so third placed TELUS Mobility has closed down the gap on its nearest rival. TELUS trumped both companies with net additions of 128k in Q2 2007 more than both Rogers and Bell put together closing the margin between itself and Bell to 612k and taking 30% out of the advantage held by the larger company a year earlier.

The companies' churn figures tell a large part of the story as to how TELUS has achieved this, its blended disconnection rate bettering or equaling Bell's in every quarter for the last two and a half years.

TELUS' clear lead in terms of customer growth in Q2 2007, as it increased its numbers by 2.5% to 5.27m, will be even more pleasing for the company given that both its minutes of use and ARPU received a boost in the quarter. AMPU was up by 29 minutes (+7.6%) on Q1 2007 at 411 minutes per month, whilst ARPU followed suit rising Can $1.62 per month (+2.6%) to Can $63.65. That said, neither metric set a record for the company, unlike the ARPU rates at its two rivals. Rogers recorded very impressive increases in its ARPU figures, of Can$5.01 in its postpaid base and Can$1.60 in its prepaid base - improvements of 7.4% and 10.8% in proportionate terms - as both metrics hit record highs. Bell Mobility also benefited, its own average monthly revenue figure hitting Can$54 - also the highest ever recorded by the company - on the back of a Can$2 improvement in prepaid ARPU to Can$17 per month.

Customer growth may not inspire much excitement in the Canadian mobile market, but these ARPU improvements certainly should: in the absence of significant raw growth, all the operators are making excellent headway in extracting as much value as they can from the customers they already have.

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Customer Comparison Q2 05 - Q2 07

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Tags: rogers wireless  telus  rogers  bell mobility  bell  churn 

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