Rogers 2011 Annual Report Download - page 33

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MANAGEMENT’S DISCUSSION AND ANALYSIS
across Nova Scotia, New Brunswick and Prince Edward Island,
representing a 130% increase over the current population coverage
of our network in those provinces.
• Rogers won an important contract to provision machine to
machine (“M2M”) wireless connectivity for Hydro-Quebec over the
next six years. Rogers will connect Hydro Quebec’s central system
with Smart Meter collectors, which aggregate electrical service
utilization data relayed from Quebec’s approximately 3.8 million
Smart Meters.
• Rogers turned on Canada’s LTE wireless network services across
four of the country’s largest metropolitan areas — Toronto,
Ottawa, Montreal and Vancouver — giving more than eleven
million Canadians access to the world’s fastest mobile network
technology. LTE is a next generation wireless technology that
enables unparalleled connectivity, capable of speeds that are
between three and four times faster than HSPA+.
• Wireless launched a set of innovative new wireless roaming
solutions to help Canadians easily manage their data use while
travelling outside of Canada. Another first in Canada, Rogers
launched Roaming Data Passes that provide real-time data usage
alerts while roaming abroad, giving cost certainty and peace of
mind.
Summarized Wireless Subscriber Results
Years ended December 31,
(Subscriber statistics in thousands, except ARPU, churn and usage) 2011 2010 Chg
Postpaid
Gross additions 1,449 1,330 119
Net additions 269 319 (50)
Total postpaid retail subscribers(1) 7,574 7,325 249
Monthly churn 1.32%1.18% 0.14%
Average monthly revenue per user (“ARPU”)(2) $ 70.26 $ 72.62 $ (2.36)
Prepaid
Gross additions 845 731 114
Net additions 109 147 (38)
Total prepaid retail subscribers 1,761 1,652 109
Monthly churn 3.64%3.18% 0.46%
ARPU(2) $ 16.02 $ 16.10 $ (0.08)
Blended ARPU(2) $ 60.20 $ 62.62 $ (2.42)
Blended average monthly minutes of usage 466 478 (12)
(1) In the second quarter of 2011, a change in operating policy resulted in a one-time decrease to the wireless postpaid subscriber base of approximately 20,000. These
subscribers are not included in postpaid net additions or churn for the year ended December 31, 2011.
(2) As defined. See the section entitled “Key Performance Indicators and Non-GAAP Measures” and “Supplementary Information: Non-GAAP Calculations” section.
Postpaid Prepaid
1,5151,652 1,761
6,979 7,325 7,574
2009 20102011
(In thousands)
WIRELESS POSTPAID
AND PREPAID SUBSCRIBERS
Wireless Subscribers and Network Revenue
The year-over-year decrease in overall subscriber net additions for the
year primarily reflects an increase in the level of churn associated with
heightened competitive intensity.
The increase in network revenue in 2011 compared to 2010 reflects
the continued growth of Wireless’ subscriber base and the increased
adoption and usage of wireless data services, offset by a decrease in
voice ARPU in large part driven by the heightened competitive
intensity as discussed below.
During 2011, wireless data revenue increased by approximately 27%
from 2010, to $2,325 million. This growth in wireless data revenue
reflects the continued penetration and growing usage of smartphone
and wireless laptop devices which are driving increased usage of
e-mail, wireless Internet access, text messaging and other wireless
data services. In 2011, data revenue represented approximately 35%
of total network revenue, compared to 28% in 2010.
2011 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 29