Rogers 2008 Annual Report Download - page 39

ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT 35
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Wireless Network Revenue
The increase in network revenue in 2008 compared to 2007 was
driven predominantly by the continued growth of Wireless’ post-
paid subscriber base and the year-over-year growth of wireless
data. The 4% year-over-year increase in postpaid ARPU reflects the
impact of higher wireless data revenue, as well as increased usage
of various calling features. The voice component of postpaid ARPU
remained relatively flat during the year, reflecting the impact of
Summarized Wireless Subscriber Results
Years ended December 31,
(Subscriber statistics in thousands, except ARPU, churn and usage) 2008 2007 Chg
Postpaid
Gross additions (1) 1,341 1,352 (11)
Net additions 537 581 (44)
Adjustment to postpaid subscriber base (2) – (65) 65
Total postpaid retail subscribers 6,451 5,914 537
Average monthly revenue per user (“ARPU”) (3) $ 75.27 $ 72.21 $ 3.06
Average monthly usage (minutes) 589 573 16
Monthly churn 1.10% 1.15% (0.05%)
Prepaid
Gross additions 632 635 (3)
Net additions 67 70 (3)
Adjustment to prepaid subscriber base (2) – (26) 26
Total prepaid retail subscribers 1,491 1,424 67
ARPU (3) $ 16.65 $ 16.46 $ 0.19
Monthly churn 3.31% 3.42% (0.11%)
(1) During the third quarter of 2008, an adjustment associated with laptop wireless data card (“air card”) subscribers resulted in the addition of approximately 11,000 subscribers to Wireless’ postpaid
subscriber base. This adjustment is included in gross additions for the twelve months ended December 31, 2008. Beginning in the third quarter of 2008, air cards are included in the gross additions for
postpaid subscribers.
(2) During 2007, Wireless decommissioned its TDMA and analog networks and simultaneously revised certain aspects of its subscriber reporting for data-only subscribers. The deactivation of the remaining
TDMA subscribers and the change in subscriber reporting resulted in the removal of approximately 65,000 subscribers from Wireless’ postpaid subscriber base and the removal of approximately 26,000
subscribers from Wireless’ prepaid subscriber base. These adjustments are not included in the determination of postpaid or prepaid monthly churn.
(3) As defined. See the section entitled “Key Performance Indicators and Non-GAAP Measures”. As calculated in the “Supplementary Information: Non-GAAP Calculations” section.
• WirelessannouncedthelaunchofitsFidoUNOandRogersHome
Calling Zone plans that allow customers to make unlimited calls
within their home using their wireless phone via a home WiFi
broadband connection. This converged service utilizes technol-
ogy known as Unlicenced Mobile Access (“UMA”) and provides
our customers the convenience of having one phone, one num-
ber, one address book and one voicemail which they can use
inside and outside of their home.
200820072006
6,4515,9145,398
1,4911,4241,380
Postpaid Prepaid
WIRELESS POSTPAID AND
PREPAID SUBSCRIBERS
(In thousands)
• AvailabilityoftheRogersPortableInternetservicewasexpanded
to now include more than 150 urban and rural communities across
Canada. With this most recent expansion, the Inukshuk joint ven-
ture’s network has become the second largest broadband fixed
wireless network in the world.
a softer economy on North American roaming, long-distance and
out-of-bucket voice usage combined with a general increase in the
level of competitive intensity.
Wireless’ success in the continued reduction of postpaid churn
reflects targeted customer retention activities and continued
enhancements in network coverage and quality.
20082007
$5,843$5,154$4,313
WIRELESS NETWORK
REVENUE
(In millions of dollars)
2007
2008
2006
20082007
$4,333$4,018$3,586
LIFE-TIME REVENUE PER
SUBSCRIBER (at end of year)
2006
20082007
$946$683$459
WIRELESS DATA
REVENUE
(In millions of dollars)
2007
2008
2006