So Rogers Communications can do no wrong. It’s easy to see why such an opinion is held by many cell phone users and investors at the moment.

The company is slowly pulling away from competitors Bell and Telus in the lucrative cell phone service game in Canada and the company’s stock is moving towards its 52-week high point.

Heck, people are actually fawning over the company now that Rogers has said it’ll bring Apple’s overhyped iPhone to Canada sometime this year. When’s the last time you heard people gush over Rogers or any service provider for that matter?

One has to wonder how long the party can last. Can relatively high margins, at least on the wireless side of the business, be sustained if Rogers is up against aggressive competitors that want to order cut rate service to gain market share? It’s a question worth pondering as the Canadian wireless market matures to the point where the most lucrative new customers become a rarer species.

New and possibly desperate wireless competitors won’t make things easier for Rogers, Bell or Telus for that matter - at least not over the short term. A slate of new wireless entrants are set to the hit market in the 12 to 18 months after Industry Canada auctions off valuable radio airwaves, which aspiring entrants need to enter the wireless services market.

New entrants matter to the health of Rogers because cell phone service is the profit engine of the company; New competition, in theory, could lead to slimmer bottom lines in future.

This is a worst-case scenario to be fair. Chances are spectrum, reserved or otherwise, will most likely be snapped up by the incumbents, say by MTS Allstream or the regional cablecos across the country. Those firms traditionally haven’t waged price wars to the best of my recollection, which means the wireless incumbents will be able to sustain, relatively speaking, the relatively high price points that make our jaws drop when we open our bills at the end of the month.

Still it’s a scenario or risk factor one needn’t forget when looking at the overall state of Rogers amid all the drooling over the iPhone and the stellar results released by Rogers earlier this week.

Furthermore, Rogers is in an enviable strategic position amongst Canadian service providers as it can offer a unique bundle of services. With little in-territory competition to mention outside of a hamstrung Bell Canada (which is being acquired by an Ontario Teachers Pension Plan-led private equity consortium) expect the stellar Rogers results to keep coming for at least the next year if not longer.

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