Archived from groups: alt.cellular.fido (
More info?)
Joseph wrote:
> So what you're saying is Rogers is lying, eh? Do you work for Rogers
> so you know that they couldn't possibly be telling the truth?
Again: If Rogers wanted to be competitive and drive prices down, they would
have offered no contracts, per second billing, city fido equivalent under the
Rogers brand. You don't need to buy another network to be competitive, you
just need to update config files in your billing software.
Rogers is buying Microcell for a couple of reasons:
-pressure from its bankers so the later can offload their MCELL shares
-access to Microcell's spectrum
-cheap way to acquire Fido customers.
Fido won't disapear overnight. It takes time to integrate 2 networks, billing
software, accounting etc. Ted Rogers may have said it takes just a minute to
enable roaming. Perhaps. But he isn't spending 1.4 billion to do just that.
He's going to see cost savings potential by merging call centres, merging
administrative functions, eliminating duplicate software licences and support
costs in IT and network equipment etc etc etc etc etc etc.
Consider that Rogers has just spent megabucks buying back the stock from its
former parent AT&T, it had no choice since Cingular didn't want to hold on to
it, and nobody else was there to buy those shares. Rogers will spend an extra
1.6 billion to get Microcell from its own cash reserves as well as money
borrowed from banks (one more reason banks are happy to have Rogers buy
Microcell since they not only get their money back from sale of Microcell
shares, but will collect interest on Roger's higher debt).
All this to say that Rogers will be under tremendous pressure to make this
merger pay a good dividend. And this means streamlininng operations to the
max, and certaintly no incentives to lower prices.
Rogers may retask "Fido" to be used as a pre-paid product name, with Rogers
used for post-paid services. But in the end, Rogers will eliminate Microcell
from the picture and will force Fido customers to move to Rogers
price/contract schemes.
While Fido may complete some promotions/projects already in the pipeline,
expect to see very few new projects actually start from now on, especially if
the merger is approved shortly.
Big question mark is whether Fido will spend megabucks to upgrade Ottawa and
Montreal to have City Fido. From what I had heard, Montreal was to have had
City Fido by mid 2005.