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15 ROGERS 2005 ANNUAL REPORT . MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
1 . C O R P O R A T E O V E R V I E W
Our Business
We are a diversified public Canadian communications and media company. We are engaged in wireless voice and
data communications services through Wireless, Canada’s largest wireless provider and the operator of the country’s
only Global System for Mobile Communications/General Packet Radio Service network, with Enhanced Data for GSM
Evolution (“EDGE”) technology (“GSM/GPRS/EDGE”); in cable television, high-speed Internet access, voice-over-cable
telephony and video retailing through Cable, Canada’s largest cable television provider; in local and long distance voice
and data telecommunications services for business and residential customers across Canada through Telecom which we
acquired on July 1, 2005; and in radio and television broadcasting, televised shopping, magazines, trade publications,
and sports entertainment through Media.
We also hold other interests including an investment in a pay-per-view movie service as well as investments in
several specialty television channels, all of which are accounted for by the equity method. In addition, we hold interests
in other public and private companies for investment purposes.
For more detailed descriptions of our Wireless, Cable, Telecom and Media businesses, see the respective
segment discussions below.
Our Strategy
Our business objective is to maximize revenue, operating income and return on invested capital by enhancing our
position as one of Canada’s leading national diversified communications and media companies. Our strategy is to be the
preferred provider of communications, entertainment and information services to Canadians. We seek to take advantage
of opportunities to leverage our networks, infrastructure, sales channels and marketing resources across the Rogers
group of companies to create value for our customers and shareholders.
We help to identify and facilitate opportunities for Wireless, Cable, Telecom, and Media to create bundled
product and service offerings, as well as for the cross-marketing and cross-promotion of products and services to increase
sales and enhance subscriber loyalty. We also work to identify and implement areas of opportunity for our businesses
that will enhance operating efficiencies and capital utilization by sharing infrastructure, corporate services and sales
distribution channels.
Cable has recently deployed an advanced broadband Internet Protocol (“IP”) multimedia network to support
primary line voice-over-cable telephony and other new services across our cable service areas. We launched voice-over-
cable telephony services in our largest market, the Greater Toronto Area, on July 1, 2005, and have since begun launching
other services in other markets within our cable service areas. To further our scale position and extend the geographic
footprint of our telephony service offerings in the Canadian telecommunications market, on July 1, 2005, we acquired
Call-Net, a Canadian telecommunications provider which operates nationally. This acquisition is described below, in the
section entitled “Acquisition of Telecom (Formerly Call-Net)”.
For a more detailed discussion of the respective business strategies of Wireless, Cable, Telecom, and Media,
refer to the respective segment discussions below.
Recent Acquisitions
AC Q U IS I TI O N O F T E LE C OM ( FO R ME R LY C AL L -N E T)
On July 1, 2005, we acquired 100% of Telecom (formerly Call-Net), a Canadian integrated telecommunications solutions
provider of local, long distance and data services to more than 600,000 households and businesses across Canada, in a
share-for-share transaction announced May 11, 2005. The Telecom acquisition brought us an extensive national fibre
network with approximately 160 co-locations in major urban areas across Canada and network facilities in the U.S. and
United Kingdom.
As consideration for the acquisition, we issued approximately 8.5 million RCI Class B Non-Voting shares and
approximately 0.4 million fully-vested options to acquire RCI Class B Non-Voting shares with Call-Net shareholders receiv-
ing one Class B Non-Voting share for each 4.25 shares of Call-Net. Including estimated transaction costs of $4.0 million,