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Rogers Wireless Increases Customer Retention Spending

9:10 am on February 10, 2006 | Category: Business, Corporate, Television, Wireless

With its fourth quarter financial results missing the expectations of some, cable and wireless giant, Rogers Communications is acknowledging that more money will have to be dedicated to customer retention in the coming years.

Fourth quarter operating profit was up by 14% over the same period in 2004, but this was cancelled out by unexpected spending, resulting in a net loss of C$66.7 million.

Rogers Wireless president, Rob Bruce, says that the profit was eaten away due to the expense of upgrading the cell phones of Fido customers. He claims that Fido â€œhadn’t done much handset upgrading of their baseâ€ before beging acquired by Rogers in 2004.

Bruce predicts that more such spending will take place in the years to come. Keeping existing customers satisfied will become more of a focus, especially as it becomes easier than ever to switch wireless providers (companies will soon be required to let customers keep their phone numbers when switching).

For the coming year, Rogers is expecting its operating profits to rise 17%, and total revenues to increase 12% compared with this year.

On the TSX, Rogers shares were down $2.69 or 5.5% yesterday, after the financial figures were announced. The companies stock closed at a value of $46.16.

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