Chris Lau - Seeking Alpha

Tuesday, July 08, 2008

Canadian Telecom: Post iPhone (July 11)
Have a read on the most recent entry on Daily Tech Talk about Rogers Communication first.

Rogers will be the only telecom with the capability to offer the iPhone, because currently, there are no other companies in Canada that is on the GSM network. Despite negative media surrounding higher data rate plans for the iPhone, I believe that fundamentally, Rogers will perform better than Telus and BCE (trading about 9% lower than the takeover price of $42.75). Yesterday, it was reported that BCE and Telus will also be charging customers $0.15 per incoming text message.

This sort of pricing policy does not make BCE and Telus attractive, as it might serve to alienate customers who already provide a high ARPU (Average Revenue Per User) for telecom companies.

My choice would be to invest in Rogers.

The above chart was generated from Yahoo! Finance