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17
RO GER S CO MMU NIC AT ION S IN C . 20 0 6 ANN UA L RE POR T
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE YEAR E NDED DEC EMBER 31, 2006
This Management’s Discussion and Analysis (“MD&A”) should
be read in conjunction with our 2006 Audited Consolidated
Financial Statements and Notes thereto. The financial information
presented herein has been prepared on the basis of Canadian gen-
erally accepted accounting principles (“GAAP”) and is expressed in
Canadian dollars, unless otherwise stated. Please refer to Note 26 to
the 2006 Audited Consolidated Financial Statements for a summary
of differences between Canadian and United States (“U.S.”) GAAP.
This MD&A, which is current as of March 28, 2007, is organized into
six sections.
In this MD&A, the terms “we”, “us”, “our”, and “the Company” refer
to Rogers Communications Inc. and our subsidiaries, which were
reported in the following segments at December 31, 2006:
• “Wireless”, which refers to our wholly owned subsidiary Rogers
Wireless Communications Inc. (“RWCI”) and its subsidiaries, includ-
ing Rogers Wireless Inc. (“RWI”) and its subsidiaries;
• “Cable and Telecom”, which refers to our wholly owned subsid-
iary Rogers Cable Inc. and its subsidiaries. RCI acquired Call-Net
Enterprises Inc. (“Call-Net”) on July 1, 2005 and subsequently
changed its name to Rogers Telecom Holdings Inc. (“RTHI”). The
results of RTHI and RTHI’s operating subsidiaries are consolidated
effective as of the July 1, 2005 acquisition date. On January 9,
2006, RCI’s ownership interest in RTHI’s operating subsidiaries
was transferred to Rogers Cable Inc. from RTHI. Beginning with
the first quarter of 2006, the Cable and Telecom operating unit
reports its results in the following segments: Cable and Internet;
Rogers Home Phone (voice-over-cable telephony subscribers and
residential circuit-switched telephony customers); Rogers Business
Solutions (business telephony and data subscribers); and Rogers
Retail. Comparative figures have been reclassified to conform to
this new segment reporting.
• “Media”, which refers to our wholly owned subsidiary Rogers
Media Inc. and its subsidiaries including Rogers Broadcasting,
which owns Rogers Sportsnet, Radio stations, OMNI television, The
Biography Channel Canada, G4TechTV Canada and The Shopping
Channel; Rogers Publishing; and Rogers Sports Entertainment,
which owns the Toronto Blue Jays and the Rogers Centre. In
addition, Media holds ownership interests in entities involved in
specialty TV content, TV production and broadcast sales.
“RCI” refers to the legal entity Rogers Communications Inc. exclud-
ing our subsidiaries.
1CORPO RA TE OVERVIEW 2SEGME NT REV IEW 3CONSO LI DATED LIQUI DITY
AND FINANCING
18 Our Business
19 Our Strategy
19 Acquisitions
19 Consolidated Financial and
Operating Results
24 2007 Financial and
Operating Guidance
25 Wireless
32 Cable and Telecom
41 Media
43 Liquidity and Capital Resources
45 Interest Rate and Foreign
Exchange Management
46 Outstanding Share Data
47 Dividends and Other Payments
on RCI Equity Securities
47 Commitments and Other
Contractual Obligations
48 Off-Balance Sheet Arrangements
4OPERA TI NG ENVIRONM ENT 5ACCOU NT ING POLI CI ES AND
NON-G AA P M EASUR ES 6ADDIT IO NAL FINA NC IAL
INFOR MA TION
48 Government Regulation and
Regulatory Developments
52 Competition in our Businesses
53 Risks and Uncertainties Affecting
our Businesses
60 Key Performance Indicators and
Non-GAAP Measures
61 Critical Accounting Policies
62 Critical Accounting Estimates
64 New Accounting Standards
65 Recent Canadian Accounting
Pronouncements
65 U.S. GAAP Differences
66 Intercompany and Related
Party Transactions
68 Five-Year Summary of Consolidated
Financial Results
69 Summary of Seasonality and
Quarterly Results
71 Controls and Procedures
72 Supplementary Information:
Non-GAAP Calculations