Rogers 2003 Annual Report Download - page 44

2003 Annual Report Rogers Communications Inc.
42
ROGERS WIRELESS
WIRELESS OVERVIEW
Rogers Wireless is a leading Canadian wireless communications service provider serving over 4.0 million customers at
December 31, 2003, including approximately 3.8 million wireless voice and data subscribers and approximately 241,000
one-way messaging subscribers. Wireless operates both a Global System for Mobile Communications/General Packet Radio
Service (“GSM/GPRS”) network and a seamless integrated Time Division Multiple Access (“TDMA”) and analog network. The
GSM/GPRS network provides coverage to approximately 93% of Canada’s population. The seamless TDMA and analog net-
work provides coverage to approximately 85% of Canada’s population in digital mode, and approximately 93% of Canada’s
population in analog mode. Rogers Wireless estimates that its 3.8 million wireless voice and data subscribers represent
approximately 12.9% of the Canadian population residing in its coverage area. Subscribers to Rogers Wireless services have
access to these services throughout the United States through its agreements with AT&T Wireless Services, Inc. (AT&T Wireless
or AWE) and other U.S. operators. The Company’s subscribers also have access to international service in over 110 countries,
including throughout Europe and Asia, through roaming agreements with other wireless communication providers.
At December 31, 2003, RCI, directly and indirectly, beneficially owned or controlled 62,820,371 Class A Multiple
Voting Shares of Rogers Wireless, representing 69.4% of the issued and outstanding Class A Multiple Voting Shares, and
16,317,644 Class B Restricted Voting Shares of Rogers Wireless, representing 31.7% of the issued and outstanding Class B
Restricted Voting Shares, which together represented 67.4% of the total votes attached to all voting shares of Rogers
Wireless currently issued and outstanding. At December 31, 2003, AWE indirectly beneficially owned or controlled
27,647,888 Class A Multiple Voting Shares, representing 30.6% of the issued and outstanding Class A Multiple Voting
Shares, and 20,946,284 Class B Restricted Voting Shares, representing 40.7% of the issued and outstanding Class B
Restricted Voting Shares, which together represented 31.1% of the total votes attached to all voting shares of Rogers
Wireless currently issued and outstanding. The remaining 14,166,250 Class B Restricted Voting Shares, representing 27.5%
of the issued and outstanding Class B Restricted Voting Shares and 1.5% of the total votes on selected matters, are publicly
held. The Class B Restricted Voting Shares are entitled to vote on all matters other than the appointment of the auditors
and generally on the election of directors. The Class B Restricted Shares are entitled to elect three directors, voting sepa-
rately as a class. As a percentage of the total number of shares of Rogers Wireless currently issued and outstanding, at
December 31, 2003, Rogers Wireless was 55.8% owned by RCI and 34.2% owned by AWE, with the balance publicly held.
Wireless Products and Services
Wireless offers wireless voice, data and messaging services across Canada. Wireless voice services are available in either
postpaid or prepaid payment options. In addition, Wireless’ GSM/GPRS network provides customers with advanced high-
speed wireless data services, including mobile access to the Internet, e-mail, digital picture transmission and two-way
short messaging service (“SMS”).
Wireless Distribution Network
Wireless markets its services through an extensive national network of over 7,000 dealer and retail locations across
Canada, which include approximately 2,500 locations selling handsets and prepaid cards and an additional approximate
4,500 locations selling the prepaid cards. Wireless’ nationwide distribution network includes an independent dealer net-
work, Rogers AT&T Wireless stores and kiosks, major retail chains such as RadioShack Canada Inc., Future Shop Ltd. and
Best Buy Canada, and convenience stores. Wireless also offers many of its products and services through a retail agree-
ment with Rogers Video that had 279 locations across Canada at December 31, 2003. Wireless also offers products and
services and customer service on its e-business Web site, www.rogers.com.
Wireless Networks
Wireless is a facilities-based carrier operating its wireless networks over a broad, national coverage area with an owned
and leased fibre-optic and microwave transmission infrastructure. The seamless, integrated nature of Rogers Wireless’
networks enables subscribers to make and receive calls and to activate network features anywhere in the Wireless’ cov-
erage area and in the coverage area of its roaming partners as easily as if they were in their home area.
In June 2002, Wireless completed the deployment of its digital wireless GSM/GPRS network overlay in the
1900 megahertz (“MHz”) frequency bands. This coverage reaches 93% of the Canadian population. During 2003, Wireless
also completed the deployment of GSM/GPRS technology operating in the 850 MHz spectrum across its national footprint,
which expanded the network capacity, enhanced the quality of the GSM/GPRS network and enabled Wireless to operate
seamlessly between the two frequencies. Wireless’ GSM/GPRS network provides high-speed integrated voice and “always
on” packet data transmission service capabilities.
In late 2003, Wireless began trials of Enhanced Data Rates for GSM Evolution (“EDGE”) technology in the
Vancouver, British Columbia market. Accomplished by the installation of a network software upgrade, EDGE more than
triples the wireless data transmission speeds available on the Rogers Wireless network. Wireless intends to begin deploy-
ing EDGE across its national GSM/GPRS network during 2004.
Wireless’ integrated TDMA and analog network is operationally seamless in GSM/GPRS and TDMA digital function-
ality between the 850 MHz and 1900 MHz frequency bands, and between TDMA digital and analog modes at 850 MHz.
Management’s Discussion and Analysis