As It Awaits Shaw Resolution, Rogers Manages Network Outage and Shows Continuing Business Strength

Rogers has alleviated the concern we’ve long had that its wireless network is falling behind rivals Telus and BCE and that BCE’s fiber-to-the-home buildout would dent Rogers’ cable dominance. It has invested to improve its wireless network, and it has skirted Shaw’s fate of cable customer losses in the face of its competitor’s network improvement, mitigating market share losses. We believe its proposed acquisition of Shaw will be value-neutral, but the purchase price and integration uncertainty bring greater risk.