Should Rogers Communications’ New Satellite And 5G Push Reshape TSX:RCI.B Investors’ Rural Connectivity Thesis?

• Rogers Communications has recently launched Rogers Satellite, expanded 5G coverage across eastern Ontario through the EORN Cell Gap Project, and added Amazon Luna cloud gaming to its Rogers Xfinity entertainment platform, broadening both connectivity and content options for Canadian consumers and businesses.
• These moves extend Rogers’ reach into remote regions and high-engagement services like cloud gaming, potentially deepening customer relationships across consumer, enterprise and IoT segments on its national network.
• Next, we’ll look at how the new Rogers Satellite service could reshape Rogers Communications’ investment narrative around rural connectivity and growth.

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Rogers Communications Investment Narrative Recap

To be a shareholder in Rogers Communications, you need to believe that its national network, bundled services and media assets can keep generating steady cash flows despite regulatory pressure, slowing subscriber growth and elevated debt. The latest launches in satellite connectivity, 5G expansion and cloud gaming enhance the product story but do not materially change the near term focus on managing leverage and protecting wireless margins in a mature Canadian market.

Among the recent announcements, Rogers Satellite stands out as most relevant for the current thesis, because it directly targets rural and remote coverage gaps that have historically limited wireless growth. By adding satellite connectivity for both consumers and IoT customers, Rogers is widening its addressable market and potentially supporting future ARPU, even as regulatory decisions and intense competition continue to weigh on pricing power and profitability.

Yet even with these new services, investors should be aware that high leverage after recent acquisitions could still...

Read the full narrative on Rogers Communications (it's free!)

Rogers Communications' narrative projects CA$23.4 billion revenue and CA$2.4 billion earnings by 2028. This requires 4.0% yearly revenue growth and an earnings increase of roughly CA$0.9 billion from CA$1.5 billion today.

Uncover how Rogers Communications' forecasts yield a CA$59.04 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community value Rogers anywhere between CA$19.07 and CA$197.82, showing very different expectations for the stock. Against that backdrop, the push into satellite coverage and 5G expansion raises important questions about how future growth might balance ongoing regulatory and competitive pressures on Rogers’ core earnings power.

Explore 8 other fair value estimates on Rogers Communications - why the stock might be worth over 3x more than the current price!

Build Your Own Rogers Communications Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Rogers Communications research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Rogers Communications research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rogers Communications' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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