Rogers 2012 Annual Report Download - page 31

MANAGEMENT’S DISCUSSION AND ANALYSIS
products on the rogers.com, fido.ca and chatrwireless.com e-business
websites and through call centres and outbound telemarketing.
CABLE
Cable Business
Cable is one of Canada’s largest providers of cable television and high-
speed Internet access. As of December 31, 2012, Cable had 2.2 million
television subscribers, representing approximately 31% of all cable
television subscribers in Canada, and 1.9 million high-speed Internet
subscribers. Cable is also an alternative to the traditional telephone
companies, providing home phone services to approximately
1.1 million customers under the Rogers Home Phone brand.
During the second quarter of 2012, we completed the closure of our
Video store operations, which had offered DVD and video game rentals
and sales in many of our corporate-owned retail locations. Accordingly,
our consolidated results no longer include our Video business and the
results of that business are now treated as discontinued operations for
accounting and reporting purposes. Current and prior period results
have been restated to reflect this change.
Cable Products and Services
(%)
2012 CABLE SERVICE REVENUE MIX
TELEVISION 56%
INTERNET 30%
HOME PHONE 14%
$3.3
BILLION
Cable offers a richly featured and highly competitive digital video
offering, including a comprehensive range of television programming
and advanced features like HDTV. Rogers Anyplace TV, Canada’s first
online destination for specialty TV programming, movies, sports and
web-only extras, is offered to all Rogers customers across Canada,
with Cable customers getting additional access to specialty and movie
content based on their cable subscription. This service allows Cable
subscribers to access TV programming online and for users to rent and
stream new releases and an extensive library of titles online on an à la
carte basis, all of which can be accessed via most Internet-connected
computers, tablets and smartphones.
Cable also offers Internet services with multiple tiers of high-speed
broadband, differentiated principally by bandwidth capabilities and
monthly usage allowances. Rogers Home Phone is our voice
telephony service for residences and small businesses. A variety of
packages include competitive features such as caller ID, voice-mail and
three-way calling, in addition to long-distance service.
Cable markets and sells its services and products through Rogers-
owned retail stores, Rogers authorized dealers and an extensive
network of third party retail locations across its network footprint.
These stores provide customers with a single, direct channel that
features Rogers’ wireless and cable products and services. Other
distribution channels include rogers.com, call centres, outbound
telemarketing, and door-to door agents.
RBS
RBS Business
RBS provides business telecom, data networking and Internet protocol
(“IP”) solutions to medium and large enterprises, the public sector and
carrier market segments. This dedicated, enterprise-focused unit
delivers leading-edge communications services to Canadian businesses
principally in and around Rogers’ Cable service territories. As at
December 31, 2012, RBS serves over 5,500 on-net fibre connected
buildings, a growth of 4% over the previous year. In addition, RBS’
fibre passes adjacent to an additional 17,600 near-net buildings.
RBS Products and Services
RBS provides voice, data, IP and Ethernet solutions to small, medium
and large businesses, governments and financial institutions. RBS
offers a comprehensive multi-service suite of next generation services
over an extensive national high-speed fiber, cable and wireless
network backbone. Services are sold through a direct enterprise sales
force, wholesale carrier network services team and third-party
channel partners. Contracts for services are typically signed with
customers on 1 to 5 year terms.
Optical Wave, Internet, Ethernet and Multi-Protocol Label Switching
(“MPLS”) services are all marketed under the RBS brand. These
services provide scalable and secure Metro and Wide Area private
networking that enable and interconnect critical business applications
for businesses that have one or multiple offices, data centres or points
of presence (as well as cloud applications) across Canada. RBS services
are backed by comprehensive Service Level Agreements. Recent RBS
product offerings include innovative offerings such as Ethernet over
Cable, SIP (“Session Initiated Protocol”) Trunking and cloud based
Virtual Contact Centre.
All RBS services are deployed over a multiservice customer access
devices that allow customers to scale and add services such as Private
Networking, Internet, IP Voice (SIP) and Cloud solutions that
seamlessly scale to address increasing demands of today’s real-time
business applications.
MEDIA
Media Business
Media is Canada’s premier combination of category-leading television
and radio broadcasting, televised shopping, sports entertainment,
publishing and digital media properties. Media operates:
• 55 radio stations across Canada;
• Several television properties, including the City network, five
multicultural OMNI stations, Sportsnet, specialty sports television
services and a number of other specialty channels;
• The Shopping Channel, Canada’s only nationally televised shopping
service;
• The Toronto Blue Jays Baseball Club;
• Rogers Centre, Canada’s largest sports and entertainment facility; and
• More than 50 well-known consumer magazines and trade and
professional publications.
Media Products and Services
(%)
2012 MEDIA REVENUE MIX
TELEVISION 40% PUBLISHING 14%
THE SHOPPING
CHANNEL 16%
RADIO 14%
DIGITAL 3%
SPORTS ENTERTAINMENT 13%
$1.6
BILLION
2012 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 27