Rogers Communications (TSX: RCI.B) activates 63 new 5G towers across eastern Ontario

Rogers Communications Inc. (TSX: RCI.B) and the Eastern Ontario Regional Network have jointly activated 63 new 5G cell towers across 31 communities in eastern Ontario, delivering expanded mobile service to residents, businesses, and Indigenous communities. The announcement, made on June 12, 2025, underscores a significant milestone in the Eastern Ontario Regional Network Cell Gap Project, a public-private infrastructure initiative valued at approximately CAD 300 million.

The newly operational towers complement a broader deployment effort that began in October 2024 and includes upgrades to one additional site. The 5G coverage now spans key areas including the City of Kingston, Prince Edward County, Kawartha Lakes, Muskoka, and numerous counties such as Frontenac, Haliburton, Hastings, Lanark, Renfrew, and Peterborough. Service has also been extended to Curve Lake First Nation, Hiawatha First Nation, and the Algonquins of Pikwakanagan, addressing long-standing gaps in mobile connectivity across eastern Ontario.

What is the EORN Cell Gap Project and how is it funded?

The Eastern Ontario Regional Network Cell Gap Project is designed to address mobile service deficiencies across rural and remote regions of the province. The total project budget is estimated at CAD 300 million, with CAD 152 million already secured. The funding includes CAD 71 million each from the federal and Ontario governments, alongside CAD 10 million contributed by municipal partners including members of the Eastern Ontario Wardens’ Caucus and the Eastern Ontario Mayors’ Caucus. Rogers Communications, selected through a competitive procurement process, is covering the remaining investment.

This wireless expansion initiative aims to boost regional safety, road navigation, and economic opportunities by enabling reliable mobile coverage and high-speed data access. The project includes the construction of 332 new towers and upgrades to 311 existing sites, all outfitted with advanced 5G technology. As of June 2025, 195 of the new towers are operational, while all 311 upgrades have been completed.

Why the new 5G coverage matters for rural infrastructure

Federal and provincial leaders have emphasized the role of mobile infrastructure in closing Canada’s rural digital divide. Federal Minister of Housing and Infrastructure Gregor Robertson stated that improving cellular access in non-urban areas is essential for both safety and economic resilience. He framed the expansion as a demonstration of Ottawa’s commitment to building a digitally inclusive Canada.

Ontario’s Associate Minister of Energy-Intensive Industries, Sam Oosterhoff, also praised the completion of 63 new towers, highlighting the real-world impact of 5G mobile services on residents, businesses, and tourism in rural Ontario. Jennifer Murphy, Chair of the Eastern Ontario Regional Network, echoed the sentiment, noting that reliable connectivity is foundational for attracting investment and enhancing public service delivery in historically underserved regions.

Rogers Communications’ role in Canadian 5G leadership

Rogers Communications’ Chief Technology Officer, Mark Kennedy, said the project positions the telecom provider to extend its 5G network leadership deeper into rural Canada. With 195 new towers built and all 311 existing towers upgraded, Kennedy emphasized that residents and businesses now have access to what Rogers describes as “Canada’s largest and most reliable 5G network.”

The 5G infrastructure enables not only faster data transmission but also improved emergency communication services and smarter transport systems. In remote regions with challenging terrain and limited road access, the reliability of mobile connectivity can significantly affect outcomes in emergencies and public service operations.

Stock performance and institutional sentiment for Rogers Communications

Rogers Communications Inc. (TSX: RCI.B) has shown a measured recovery in its stock performance in recent months. As of mid-June 2025, the telecom stock is trading between CAD 36.99 and CAD 37.63, up more than 14% from its April 2025 low of CAD 32.42. Despite this rebound, the stock remains significantly below its 52-week high of approximately CAD 56.55 recorded in September 2024.

Institutional activity has picked up, with 420 institutions currently holding over 61% of total shares. The last quarter saw net institutional additions of nearly 10 million shares. BlackRock, Northern Trust, and Royal Bank of Canada reported notable increases in their holdings, with Northern Trust more than doubling its position. However, Royal Bank of Canada also added substantial put positions, signaling a hedging strategy despite its bullish accumulation.

Current dividend yield stands at approximately 5.4%, supported by stable payout practices. The next dividend payout is scheduled for July 3, 2025, with the ex-dividend date having passed on June 9. This dividend profile continues to attract income-focused investors, particularly amid market volatility.

Analyst ratings and valuation signals

Analyst consensus maintains a positive outlook on Rogers Communications, with an average 12-month price target near CAD 52.13. Price targets range from CAD 35.35 to CAD 72.45, reflecting both cautious and optimistic views depending on macroeconomic scenarios and competitive responses within the Canadian telecom space.

Factor-based analysis from platforms like Fintel indicates strong scores for growth (70/100), profitability (61/100), and quality (66/100), though momentum remains weak (33/100). Stability remains a strong attribute (88/100), reinforcing Rogers’ role as a core holding for defensive portfolios.

Given the project milestones in rural expansion and favorable dividend metrics, buy-side sentiment appears cautiously optimistic. The combination of infrastructure-led growth, predictable income, and ongoing institutional interest makes Rogers a candidate for long-term accumulation. However, analysts continue to advise pacing entry given macroeconomic pressures and modest short-term upside.

Outlook: how Rogers’ rural buildout could shape future strategy

Rogers Communications’ strategic alignment with federal and provincial infrastructure agendas positions it advantageously for future spectrum access, regulatory support, and market expansion in underserved territories. By executing on commitments such as the EORN Cell Gap Project, the telecom provider is not only improving its operational footprint but also enhancing its reputation with policymakers and regional stakeholders.

While the full rollout of all 332 planned towers is expected to continue through late 2025 and into 2026, the current phase significantly advances the project’s goal of universal mobile coverage in eastern Ontario. If execution remains on track, Rogers is well placed to replicate this model in other provinces with similar rural infrastructure gaps.

The focus on Indigenous communities and remote municipalities also opens the door to additional government-led funding opportunities, particularly as Ottawa pursues digital equity frameworks and connectivity benchmarks.

Infrastructure investment with long-term yield stability

The 5G tower rollout in eastern Ontario marks a pivotal moment for rural connectivity and underscores Rogers Communications’ commitment to network expansion through public-private partnerships. With strong dividend yields, modest valuation multiples, and continued institutional support, the Canadian telecom giant presents a compelling case for value and income investors alike.

Short-term sentiment remains mixed due to macroeconomic pressures and low momentum indicators. However, long-term fundamentals, including stable cash flows, increasing infrastructure relevance, and favorable regulatory positioning, are likely to support gradual capital appreciation.