Cable / Telecom News

Rogers to take charge on renegotiated Yahoo! deal



TORONTO – Back in January 2004, Rogers Cable signed a multi-year agreement with Yahoo! to offer cable’s high-speed Internet access subscribers a co-branded broadband experience.

Rogers Cable and its broadband customers received Yahoo!’s e-mail functionality; hosting and storage; security, pop-up blocking and parental control tools; digital photo tools; online music and game services; and an array of content in a personalized user environment.

Under the agreement, Rogers paid portal fees to Yahoo! for these services on a per subscriber basis.

Yesterday, however, Rogers and Yahoo! entered into a renegotiated agreement effective January 1, 2008 under which the two companies will share advertising revenue opportunities leveraging the high-speed Internet access subscribers, and Rogers no longer pays portal fees to Yahoo!. The new deal will now expire on December 31, 2011.

In connection with the renegotiation of this agreement, Rogers will make a one time payment to Yahoo! of approximately $52 million and cable’s cost of providing its high-speed Internet service will be meaningfully reduced over the term of the renegotiated agreement, said the company today.

www.rogers.com