Telecom Trends: Hedging against cable rate increases

Wednesday, January 24, 2007

Hedging against cable rate increases

Rogers just keeps rolling along. Earlier this week, Rogers' market cap exceeded Bell's for the first time. Its stock price continues to rise into record levels, almost as though retail investors missed the news that there was a 2:1 split.

And now, customers are opening their mail to learn that prices are going to increase, effective March 1, "due to increased operational costs." Internet goes up by $1 and cable TV increases by $3.50. It is a demonstration of confidence in the market.

I have to admit, it is hard to complain.

If a customer bought just one share of Rogers stock a year ago for $48.50, today they would have 2 shares worth $38 each. That goes a long way toward covering next month's price increase.

Technorati Tags:
Rogers