Rogers Communications Shares Soar 0.54% on Satellite Service Launch

Rogers Communications (RCI) shares rose 0.54% today, reaching their highest level since December 2024, with an intraday gain of 1.08%.

The strategy of buying RCI shares after they reached a recent high and holding for one week resulted in a -10.29% return, significantly underperforming the benchmark, which had a return of -100.00%. Despite this, the strategy still delivered an excess return of 89.71% and a CAGR of -2.16%, indicating some resilience amid market downturns. However, the strategy's Sharpe ratio was -0.13, and the maximum drawdown was 0.00%, suggesting a lack of risk-adjusted returns and the potential for zero losses during the backtested period.

Rogers Communications has recently made a significant strategic move by launching a new satellite-to-mobile text messaging service in Canada, named Rogers Satellite. This service is set to expand Rogers' network coverage to over 5.4 million square kilometers, which is more than 2.5 times larger than any other Canadian wireless carrier. The service leverages low-earth orbit (LEO) satellites in conjunction with Rogers' national wireless spectrum, making it compatible with most modern smartphones without the need for specialized equipment. This launch positions Rogers at a competitive advantage by addressing connectivity gaps, particularly in rural and remote areas where only 18% of the land mass has traditional wireless coverage. The service is initially available as a free beta trial, with plans to expand to data and voice services, including 911 voice capabilities. This move represents a strategic advance in Canadian telecommunications infrastructure and introduces a significant barrier to entry for competitors.