Rogers Wireless Increases Cost Of BlackBerrys To Make Up For $30 Million In Acquisitions
Rogers Wireless, Canada’s biggest telecomm company has made the cost rise on three year contract prices for BlackBerry devices. The price increase made the cost of the Curve 83xx raise to $149.99 (up $50), Curve 8900 to $224.99 (up $25) and the Bold go to $299.99 (up $50). The reason for the price increase was because executives at Roger realized that their budget for acquisitions was $30 million in the red.
“On Wednesday, the senior executive team realized that they were over budget $30 million dollars on their cost of acquisition. How I don’t know why it took so long. [sic] They then did their knee jerk response. Your DBM’s and other local managers know nothing more than this and are in the dark as much as we are on this other than we were told VERBALLY that in market quotes would be honored for 30 days from today. The exception lists are due Monday and only for non named accounts. I have requested in every region for a positioning statement and to this moment have not heard a response. If it makes you feel any better the retail has even more uncertainty,” stated a Rogers VP.
What has Rogers been buying? Five years ago, Rogers bought Microcell Telecommunications for $1.5 billion. Rogers Media also bought out Citytv two years ago. Rogers Communications Inc. bought out the Toronto Blue Jays about 9 years ago. Rogers has bought several other telecommunications companies and TV/radio stations earlier in the decade.
[via BGR]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry