Canadian telecom giant Rogers said CEO Guy Laurence is leaving his post immediately, plans to hire former Telus CEO Joseph Natale
Canadian telecom giant Rogers Communications announced president and CEO Guy Laurence is stepping down immediately, which came on the heels of lackluster third-quarter financial results.
The company said it plans to name Joseph Natale, who most recently served as president and CEO of rival Telus, to the position “as soon as he is in position to join Rogers.” Natale left Telus last year and is reported to be under a noncompete clause preventing him from joining a rival carrier until next summer.
Rogers said current Chairman Alan Horn will assume leadership of the company until Natale is able to take the positions.
“Joe is a proven executive who has deep experience delivering strong financial results in a highly competitive and complex industry,” Horn said in a statement. “His focus on the customer experience and demonstrated expertise delivering operational success makes him well suited to lead Rogers through the challenges and opportunities ahead.”
Local media indicated Laurence had clashed with the family of company founder Ted Rogers, which was a factor in his being dismissed after less than three years on the job. Laurence had previously headed Vodafone Group’s telecom business in England.
Rogers’ latest quarterly results included year-over-year growth in revenue, but a dip in net income and free cash flow. The company’s wireless division posted slight gains in revenue and operating profits, as well as improved postpaid customer growth, retention and spending.
Rogers, along with Telus and Bell Canada, dominate the country’s mobile telecom market, with the three carriers serving approximately 90% of Canada’s wireless customers. That control is set to increase as Bell earlier this year announced plans to acquire regional operator MTS for approximately $3 billion, though as part of the deal said it would sell one-third of MTS’ postpaid customer base and assign one-third of MTS dealers to Telus for an undisclosed sum.
Rogers last year won a bidding war to acquire beleaguered Canadian mobile operator Mobilicity in a move that government regulators said would bolster its attempts to increase competition across Canada. Rogers and Telus were reported to be interested in Mobilicity despite regulatory concerns.
Canada’s telecom regulator, Industry Canada, touted the transactions as a positive step in its attempts to broaden the competitive balance of mobile operators in the country. The government noted that in connection with recent spectrum auctions in the 1.7/2.1 GHz, 700 MHz and 2.5 GHz bands, “new” wireless entrants now control approximately 25% of the country’s total wireless spectrum, with the three dominate players – Rogers, Telus and Bell Canada – controlling the other 75%.
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