Rogers hikes Internet and cable fees
Cable giant's TV unit takes $294 million charge as ad sales slump
Feb 19, 2009 04:30 AM
Rogers Communications Inc., which yesterday posted a $138 million fourth-quarter loss, is again raising rates for residential cable and high-speed Internet services as customers scale back spending.
The cable and telecommunications giant recently mailed customers a card detailing residential rates, effective March 1.
Rates will rise between 3 and 9 per cent for Rogers' high-speed Internet services, with the exception of its $99.95 per month "Extreme Plus" tier. Several cable TV packages will also see prices increase, including a 5 per cent hike for basic cable services to $29.99 per month.
Prices for Rogers home phone, raised last year through a 30 per cent increase to a "system access " fee charged to subscribers, will remain unchanged.
The latest increases are necessary to "ensure continued investment in our network and programming" and to address "increased costs like those from programming providers, " Rogers spokesperson Nancy Cottenden said.
The changes come as Rogers feels the impact of a slowing Ontario economy on its Internet and home phone businesses.
Rogers added just 40,000 new home phone customers in the fourth quarter compared with 65,000 net additions in the same period last year. Executives blamed a slowing economy and increased efforts by Bell Canada Inc. to win back customers with special promotions and competitive rates......