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63
Rogers Communications Inc. 2004 Annual Report
Advertising
Wireless and Cable advertise their products and services through radio stations and other media outlets owned by Media. They receive
a discount from the customary rates of Media. Media has also agreed to compensate Cable for the placement of Media advertising on
one or more of Cable’s television channels.
AT&T ARRANGEMENTS
In November 1996, Wireless entered into a long-term strategic alliance with AT&T Corp., its affiliate AT&T Canada Enterprises Inc.
(“AT&T Canada Enterprises”) and its then affiliates, AWE and AT&T Canada. AT&T Canada, now renamed Allstream Inc., offers local and
long-distance telephone and data transmission services to business customers in Canada. This strategic alliance included, among other
things, a brand licence agreement under which Wireless was granted a licence to use, on a co-branded basis, the AT&T brand in connec-
tion with the marketing of its wireless communications services.
In 1999, Wireless entered into a renewed long-term strategic alliance with AWE, AT&T Canada Enterprises and AT&T Canada
involving a number of agreements. In January 2003, Wireless’ supply and marketing agreement and non-competition agreement with
AT&T Canada were terminated. In March 2004, Wireless’ brand licence agreement with AWE was terminated. In October 2004, the share-
holders’ agreement between ourselves, AWE and Wireless was terminated as a result of our acquisition of the 34% stake in Wireless
owned by AWE. The remaining relevant agreements between Wireless and AWE are described below.
Mobile Wireless Marketing, Technology and Services Agreement
Wireless entered into an amended and restated mobile wireless marketing, technology and services agreement with AWE that enables
them to share marketing and technology information and requires the parties to work together to develop networks with common features
for their respective subscribers. This agreement may be terminated at any time by either party. No amounts are payable under the agreement.
Roaming Agreement
Wireless maintains a reciprocal roaming agreement with AWE (now part of Cingular) whereby AWE provides wireless communications
services to Wireless’ subscribers when they travel to the U.S. and we provide the same services to Cingular subscribers when they travel
to Canada. This agreement may be terminated upon short notice by either party.
Shareholders’ Agreement
In connection with the JVII investment described above, we, Wireless, and JVII entered into a shareholders’ agreement. This agreement
terminated in October 2004, upon our acquisition of the 34% stake in Wireless owned by AWE.
SUMMARY OF CHARGES FROM (TO) RELATED PARTIES
We have entered into certain transactions in the normal course of business with AWE, a shareholder of Wireless until October 13, 2004,
and with certain broadcasters in which we have an equity interest.
(In millions of dollars) 2004 2003
Roaming revenue billed by AWE1$ 12.1 $ 13.0
Roaming expenses paid to AWE1(9.0) (13.6)
Fees Paid to AWE for over-air activation1(0.0) (0.3)
Programming rights acquired from the Blue Jays (8.0) (12.0)
Access fees paid to broadcasters accounted for by the equity method (19.0) (19.0)
$ (23.9) $ (31.9)
1 Amounts for 2004 are until October 13, 2004.
In addition, we entered into certain transactions with companies, the partners or senior officers of which are directors of RCI or our
subsidiary companies as follows:
(In millions of dollars) 2004 2003
Legal services and commissions paid on premiums for insurance coverage $ 4.0 $ 6.1
Telecommunications and programming services 6.3 59.2
Interest charges and other financing fees 37.8 18.1
$ 48.1 $ 83.4
We made payments to or received payments from companies controlled by our controlling shareholder as follows:
(In millions of dollars) 2004 2003
Dividends paid on Class A Voting and Class B Non-Voting shares of the RCI $7.0$7.0
Dividends paid on Class A Preferred shares of Blue Jays Holdco 2.7 2.4
Charges to Rogers for business use of aircraft 0.5 0.4
Charges by Rogers for rent and reimbursement of office and personnel costs (0.1) (0.4)
$ 10.1 $ 9.4