Rogers 2005 Annual Report Download - page 118

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114 ROGERS 2005 ANNUAL REPORT . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
each, in the 1.9 gigahertz (“GHz”) band in various regions across Canada at a cost of $396.8 million, including
costs of acquisition. During 2005, the Company acquired spectrum in various licence areas for an aggregate
cost of $4.8 million (2004 – $6.1 million). These amounts have been recorded as spectrum licences. The Company
has determined that these licences have indefinite lives for accounting purposes and are therefore not being
amortized.
(ii) The Fido brand names were acquired in 2004 as a result of the acquisition of Fido (note 3(b)). The fair value of
the brand names was determined to be $102.5 million and is being amortized straight-line over five years. The
Rogers brand names were acquired in 2004 as a result of the acquisition of 100% of Wireless (note 3(b)). The fair
value of the portion of the brand names acquired was determined to be $303.5 million and is being amortized
straight-line over 20 years.
(iii) The subscriber bases were acquired as a result of the acquisitions of Fido and Wireless in 2004 (note 3(b)) and
the acquisition of Call-Net in 2005 (note 3(a)). The fair value of the customer base for Fido is being amortized
straight-line over 2.25 years, the fair value of the customer base for Wireless is being amortized straight-line
over a weighted average of 4.6 years and the fair value of the customer base for Call-Net is being amortized
straight-line over a weighted average period of 2.4 years.
(iv) Player contracts are related to the value of contracts associated with the Toronto Blue Jays Baseball Club
(“Blue Jays”) and are being amortized straight-line over five years.
(v) Roaming agreements are related to the value of roaming contracts associated with Fido and Wireless
(note 3(b)). These agreements are being amortized straight-line over 12 years.
(vi) The dealer networks were acquired in 2004 as a result of the acquisitions of Fido and Wireless (note 3(b)). The
dealer networks are being amortized straight-line over four years.
(vii) Wholesale agreements are related to the value of contracts acquired as part of the Fido acquisition (note 3(b)).
These agreements are being amortized straight-line over a period of 38 months.
(viii) The broadcast licence was acquired as part of the acquisition of the remaining 20% of Sportsnet (note 3(b)).
The broadcast licence has an indefinite life and is therefore not being amortized.
Note 7. Investments:
2005 2004
Quoted Quoted
market Book market Book
Number Description value value value value
Investments accounted for
by the equity method $ 9,047 $ 9,348
Investments accounted for
by the cost method,
net of write-downs:
Publicly traded companies:
Cogeco Cable Inc. Subordinate
6,595,675 Voting
(2004 – 6,595,675) Common $ 161,594 68,884 $ 169,179 68,884
Cogeco Inc. Subordinate
3,399,800 Voting
(2004 – 3,399,800) Common 81,595 44,438 76,190 44,438
Other publicly traded
companies 11,998 2,845 23,772 3,551
255,187 116,167 269,141 116,873
Private companies 12,998 12,949
$ 138,212 $ 139,170