Essay Customer Service

Submitted By Xueqing-Liang
Words: 500
Pages: 2

Roger Case study

Q#1
In general, the industry goes to digital age, requires telecommunication companies provide advanced and friendly digital services to acquire and retain customers, include GSM, HSPA, wireless spectrum, more bandwidth wireless data service, HDTV, VOD, IPTV, etc., which means Roger must pay more for these related equipment, permit, copyright, and make more budget on market promotion. The highly costs lead negative effects on the financial report. In this background, Roger should not only find a financial balance between costs and revenue, but also pay highly attention on satisfying customers’ needs, provide advanced services with reasonable prices, because in telecom industry, customer is always the king.
Q#2
Till 2009, Roger has the largest market share in wireless service (which is 37% compares with Bell 30% and Telus 28%) and highest ARPU ($63.59 compares with Bell $51.7 and Telus $58). Even Roger achieves a leading position in wireless service, its market performance on wireline service still need to be improved. Roger has the least market share in wireline compared with Bell, Telus and Shaw. However, it is reasonable to believe Roger has the potential to overturn its disadvantage. In 2009, Rogers’ Internet ARPU was $40.20, up approximately 6% from $37.82 in 2008; and television ARPU increased nearly 70% from $60.47 to $64.61.
Based on the income statement, Bell is the most profitable company in the industry due to its huge revenue ($13,840 million) in wireline service, which is almost twice as Telus and three times as Roger. Meanwhile, Roger makes most revenue ($6654 million) from wireless service, and its net income is just slightly off Bells due to its cost control. Roger’s operating expense is $9,163 million, much less than Bells’ $1,630 million.
Q#3
In the past, Rogers did several successful investments, such as bought out AT&T’s ownership stake and then purchased Microcell to become Canada’s largest wireless carrier in 2004; purchased nearly $1 billion…