It\u2019s been exactly one year since he took on the role of chief executive of Rogers Communications Inc., and Joe Natale wants to talk about networks.<\/p>\n
Not the television kind, which helped build the company into one of Canada’s communications giants, but the wireless and internet ones that he sees as core to its future.<\/p>\n
\u201cNow is a critical time to invest. We are at the brink of a technological revolution \u2014 a revolution that will fundamentally changed the way we live and work,\u201d Natale said at Rogers\u2019 annual general meeting at its Toronto headquarters Friday.<\/p>\n
That revolution will come as a result of 5G wireless technology, the low-latency networks needed to power such real-time applications as self-driving cars and smart cities, and that will require investment to future-proof the internet for connected home systems that cover everything from home security to lighting control.<\/p>\n
Last year when Natale addressed the annual meeting on his first day on the job, he focused on customer service. In an interview Friday, the day after Rogers reported strong first-quarter results, he said the new focus on networks is \u201cone and the same.\u201d<\/p>\n
\u201cI believe our responsibility to customers includes making available to them the latest and most important technologies that can help support their lives,\u201d he said.<\/p>\n
Earlier this week, Rogers announced it would test 5G technology with Ericsson as a partner. It won\u2019t be commercially available for a couple of years, but in the meantime Rogers is upgrading its existing network to 4.5G speeds.<\/p>\n
Rogers\u2019 mobile speeds have recently fallen behind its top competitors, BCE Inc. and Telus Corp., according to independent speed tests. Bell and Telus announced 5G tests two years ago.<\/p>\n
In an interview, Natale said Rogers waited to upgrade its network to 4.5G after lessons learned from 3G.<\/p>\n
\u201cAnybody who put in tech early in 3G wound up ripping it out a year or two later,\u201d he said.<\/p>\n
Waiting for a more stable technology means the equipment Rogers installs now can be upgraded to 5G using software, which wasn\u2019t possible until recently.<\/p>\n
\u201cThe cost of the technology is far less than it was a couple of years ago so we\u2019re able to do more and invest more in the future as a result,\u201d Natale said.<\/p>\n
Long relegated to the realm of imagination, 5G is now becoming a reality.<\/p>\n
\u201cFinally the technology has caught up to the point where we can put our foot on the gas and make this stuff happen,\u201d he said.<\/p>\n
That means working closely with municipalities, as 5G networks require small cells on buildings and street furniture rather than one big cell tower, something that could pose challenges for all carriers if cities don\u2019t play ball.<\/p>\n
So Natale is selling mayors on the idea of partnering to build smart cities, where networks could reroute traffic based on accidents or monitor natural disasters.<\/p>\n
While the traditional television business has faced difficulties, Rogers is nevertheless preparing to launch a major upgrade in that area.<\/p>\n
When Natale joined the company, it had just taken a $484-million hit after abandoning internal development of an internet protocol TV product in favour of Comcast\u2019s X1 platform instead.<\/p>\n
The new product, Ignite TV, is being testing with employees and slated to roll out next year. It will be a premium product that will eventually enable smart homes.<\/p>\n
Shaw Communications Inc. launched a product on the same X1 platform last year \u2014 also pitched as a premium, smart-home solution \u2014 but said this month that it hasn\u2019t reversed the fortunes of the TV business, which is stagnating in the Netflix era.<\/p>\n
\u201cThe anchor and the foundation to the home is internet,\u201d Natale said when asked whether Ignite will invigorate a flagging TV business. \u201cThe TV business in and of itself is a difficult business because content costs are rising and consumers\u2019 appetite to pay more for content is not rising.\u201d<\/p>\n
Tighter margins don\u2019t change the fact that TV is still the \u201cstickiest, most exciting\u201d part of home entertainment, Natale said. It may be all about the internet connection, he said, but Rogers plans to wrap lower margin services around it that add value to customers\u2019 everyday lives.<\/p>\n
\u201cWe\u2019ve architected it so that even if TV doesn\u2019t make a lot of money, it\u2019ll help support the future of the internet business, which is really the core of our future,\u201d he said.<\/p>\n