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93
RO GER S CO MMU NIC AT ION S IN C . 20 0 6 ANN UA L RE POR T
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(B) INTANGIBLE ASSETS:
2006 2005
Accumulated Net book Accumulated Net book
Cost amortization value Cost amortization value
Spectrum licences $ 901 $ – $ 901 $ 929 $ – $ 929
Brand names 411 80 331 411 43 368
Subscriber bases 1,045 609 436 1,112 322 790
Baseball player contracts 120 118 2 120 112 8
Roaming agreements 523 94 429 523 51 472
Dealer networks 41 22 19 41 12 29
Wholesale agreements 13 9 4 13 5 8
Broadcast licence and other 30 – 30 23 – 23
$ 3,084 $ 932 $ 2,152 $ 3,172 $ 545 $ 2,627
During 2006, the Company reduced the value ascribed to subscriber
bases by $91 million as it reduced the valuation allowance related to
future income taxes arising on acquisition (note 7).
During 2006, Broadcast licence and other increased by $7 million as a
result of acquisition and purchase price adjustments in Media.
During 2005, the Company acquired spectrum in various licence areas
for an aggregate cost of $5 million.
During 2005, subscriber bases of $123 million were acquired as a
result of the acquisition of Call-Net (note 4(c)).
Amortization of subscriber bases, brand names, player contracts,
roaming agreements, dealer networks and wholesale agreements in
2006 amounted to $387 million (2005 – $382 million).
During 2006, the Company contributed its 2.5 GHz spectrum licences
with a carrying value of $55 million to its 50% owned joint venture.
Accordingly, the carrying value of spectrum licences has been
reduced by approximately $28 million.
During 2006, the valuation of intangible assets acquired as part of
the Call-Net Acquisition was finalized, resulting in a $24 million
increase in subscriber bases acquired. The offset to this adjustment
was recorded as a reduction to goodwill.
12 I NVESTMENTS
2006 2005
Quoted Quoted
market Book market Book
Number Description value value value value
Investments accounted for by the equity method $ 7 $ 9
Investments accounted for by the cost method,
net of write-downs:
Publicly traded companies:
Cogeco Cable Inc. 6,595,675 Subordinate $ 214 69 $ 162 69
Voting
Common
Cogeco Inc. 3,399,800 Subordinate 100 44 82 44
Voting
Common
Other publicly traded companies 15 4 12 3
$ 329 117 $ 256 116
Private companies 15 13
$ 139 $ 138