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sbrook
Premium,Mod
join:2001-12-14
Ottawa
kudos:13
Reviews:
·TekSavvy Cable
·WIND Mobile
reply to Gtr7

Re: Another Rogers Rate Increase

Some very quick and rough (and probably inaccurate) arithmetic follows ...

if you look at the total number of Rogers subscribers (probably 4 million individuals with one or more services), it would average out to about to something like $100 per account per year. That is awfully slim profit on their revenue per customer.

This is why Rogers had their credit rating go to pot when they went to take on internet after @home went bye bye. It's not the numeric profit that counts, it's the fact that additional customer costs of only $10 per month could wipe it all out. Basically that means a couple support calls per month per customer.



TLS2000
Crazy Canuck
Premium
join:2004-02-24
Mississauga, ON

If we count wireless in your numbers, Rogers has over 9 million wireless customers, so the profit per customer would be even lower.
--
Tom



sbrook
Premium,Mod
join:2001-12-14
Ottawa
kudos:13
Reviews:
·TekSavvy Cable
·WIND Mobile

True enough.

The big problem though is that instead of running a tight and reliable efficient service where their costs per customer are therefore lower, they choose instead to rely on high volume and hit the customer with rate increases to make up for their own inadequacies.