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Management's discussion and analysis (“MD&A”) COGECO CABLE INC. 2013 9
OVERVIEW OF THE BUSINESS
Cogeco Cable Inc,'s (“Cogeco Cable” or the “Corporation”) (www.cogeco.ca) is a telecommunications corporation and the 11th largest hybrid fibre
coaxial cable operator in North America. In fiscal 2013, the Corporation reported its operating results in three principal operating segments:
Canadian cable services, American cable services and Enterprise services. The reporting structure reflects how the Corporation manages its
business activities to make decisions about resources to be allocated to the segments and to assess their performance. For the year ended
August 31, 2013 the proportion of each segment as a percentage of the Corporation's consolidated revenue and operating income before
depreciation and amortization(1) were as follows:
For further details on the Corporation's segmented operating results, please refer to the “Segmented operating results” section.
CANADIAN AND AMERICAN CABLE SERVICES
The Canadian and American cable services segments provides a wide range of Television, High Speed Internet (“HSI”) and Telephony services
primarily to residential customers in Canada and the United States of America (“United States”). It also provides Business services to small and
medium sized businesses. Television, HSI, Telephony and Business services are provided through state-of-the-art fibre optic and two-way
broadband distribution networks.
As at August 31, 2013, the Canadian cable services segment provided Television service to 834,771 customers, HSI service to 661,337 customers
and Telephony service to 484,014 customers for a total of 1,980,122 primary service units(2) ("PSU"). The American cable services segment
provided Television service to 230,304 customers, HSI service to 177,108 customers and Telephony service to 78,246 customers for a total of
485,658 PSU.
The following four services represent our core suite of offerings:
Television services: We offer our customers a full array of cable television services and programming offerings ranging from traditional analogue
cable offerings to full digital services. Our customers have access to a basic service, pay-per-view channel, On-demand services and high definition
television ("HDTV").
HSI Services: We offer HSI packages with different transfer speeds, monthly data transfer capacities and service attributes in all of our territories
and additional packages of greater speeds in areas where we have deployed the DOCSIS 3.0 technology. A security package is available to our
HSI customers. HSI service customers can connect wirelessly to the Internet at no extra cost from numerous designated wireless Wi-Fi Internet
hotspots in our Canadian footprint.
Telephony services: Telephony service uses IP to transport digitized voice signals over the same private network that brings Cable Television
and HSI services to customers. Residential customers can subscribe to different packages. All residential Telephony service customers have
access to direct international calling and can subscribe to various international long distance plans.
Business services: We provide business services, including data networking, Ethernet, hosting, HSI access and VoIP services, to small and
medium sized businesses.
(1) The indicated terms do not have standardized definitions prescribed by International Financial Reporting Standards (“IFRS”) and, therefore, may not be
comparable to similar measures presented by other companies. For more details, please consult the “Non-IFRS financial measures” section of the Management’s
discussion and analysis (“MD&A”).
(2) Represents the sum of Television, HSI and Telephony service customers.