GREY:ESPAF - Post by User
Post by
luberonon Oct 28, 2015 7:51pm
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Post# 24236972
Rogers contract
Rogers contract First I must admit I find the whole issue difficult to follow - I can understand that legal or perhaps competitive considerations constrain what the CEO can say or how he says. Nevertheless, here are my key notes.
In Q3, Rogers procured licenses for their current set-top boxes (STBs) and the new 4K STBs - Rogers is expected to continue to acquire additional licenses as required through 2016 and perhaps beyond. What seem to have changed is what is to happen after the 4K boxes (2017 and beyond?) Rogers seemed to have changed its thinking in this regard - given the dynamic changes taking place in technology, that is not surprising. The change in thinking may also be related to how licenses are acquired/charged - by subscriber, or by each individual STB used by the subscriber? Dolvane said that they are in discussions as to the nature of the change, if one were to take place.
Near the end of the call, Pardeep Sangha (Haywood) asked for clarification regarding the previous generally accepted narrative concerning the $75-80m revenue expected to be generated from the 3 tier1 operators over the next 4 or so years. The CEO confirmed that in spite of the potential change by Rogers, we are still in the same ballpark re the expected revenues.
Any clarifications/additions welcome.