Rogers 2012 Annual Report Download - page 32

MANAGEMENT’S DISCUSSION AND ANALYSIS
Media offers a diverse portfolio of products and services in five key
areas:
• Radio
Media’s Broadcasting Group operates 55 radio stations in markets
across Canada, including popular radio brands such as 98.1 CHFI,
680 News, Sportsnet 590 The FAN, KISS 92.5, JACK FM and SONiC.
• Television
Media’s Broadcasting Group also operates a number of
conventional and specialty television stations, including:
• City network, which together with affiliated stations, has a
distribution to approximately 80% of Canadian households;
• OMNI multicultural television stations;
• Specialty channels that include Outdoor Life Network, The
Biography Channel (Canada), G4 Canada, FX (Canada), and
CityNews Channel;
• Sportsnet, featuring Sportsnet One, Sportsnet World, and
Sportsnet HD; and
• The Shopping Channel, Canada’s only national televised
shopping channel with a significant and growing portion of its
revenues generated from online sales.
• Publishing
Media’s publishing division (“Publishing”) produces more than 50
publications – including many well-known consumer magazines
such as Maclean’s, Chatelaine, Flare, Hello! Canada and Canadian
Business – and is a leading publisher of marketing, medical,
financial and trade publications. Publishing also has a broad digital
presence with a number of online publications and continues to
extend its content through new platforms.
• Digital Media
To support and grow the above noted aspects of the portfolio,
Media has also invested significantly in digital media properties,
achieving a more than 100% year-over-year increase in unique
visitors, making it one of the fastest-growing Canadian networks.
Media is committed to growing its digital media presence by
extending audience engagement across online and mobile
platforms through investments in user experience and content,
delivering advertising solutions for our clients, and investing in e-
commerce.
• Sports Entertainment
Media’s Sports Entertainment division comprises Canada’s only Major
League Baseball team, the Toronto Blue Jays, as well as the Rogers
Centre event venue, which hosts the Toronto Blue Jays’ home games
and other professional league games, concerts, trade shows and
special events.
OUR NETWORK CAPABILITIES
At Rogers, we work hard to maintain our position
as a leader in wireless and broadband networks by
continuing to invest in speed, reliability, and next
generation features and functionality.
Our strategy is to provide long-term value to customers and
shareholders by always being first in Canada to bring seamless, easy-
to-use and reliable end-to-end supported experiences that leverage
our network, content and assets. Our networks are critical to
achieving this strategy.
For a glossary of industry and technology terms to complement the
following discussion, see the section “Glossary of Selected Terms” at
the end of this MD&A.
Wireless Networks and Spectrum
Wireless has one of the most extensive and advanced independent
wireless networks in Canada.
In recent years, Rogers has embarked upon a strategic transformation
to create an infrastructure that is all IP for all of our services.
Advances in technology have transformed the way Rogers’ customers
interact and how they use the variety of tools that are available to
them in their personal and professional lives. In addition, technology
has also changed the way businesses operate.
Wireless has invested in several areas to serve the changing needs of
its customers. Wireless network nodes are interconnected using fibre-
optic and broadband microwave transmission. New technologies have
been deployed to enable unique new services, such as Rogers One
Number, which makes wireless services available to subscribers on
their computer, tablet, smartphone or home phone. Users enjoy the
same services and features across the coverage area, thanks to the
seamless integrated nature of the Rogers network and those of its
roaming partners.
The network currently provides national coverage for HSPA+ (3.5G
High-Speed Packet Access) with speeds up to 42 Megabits per second
(“Mbps”), and an ever-increasing coverage using LTE (4G Long-Term
Evolution) technology with speeds up to 150+ Mbps. The deployment
of 4G LTE started in 2011 and provides speeds that are about four
times faster than 3.5G HSPA+. Where we have deployed 4G LTE, the
cost to provide each megabyte of wireless data services is significantly
lower, and the relative capacity of the network is increased in order
to better serve the increasing base of high-end smartphones and the
growing use of wireless data.
Our wireless services are supported by Wireless’ significant spectrum
position. Wireless currently holds: (i) 25 MHz of 850 MHz and 60 MHz
of 1900 MHz spectrum used to serve 3.5G and 2G subscribers across
Canada; (ii) 50 MHz of 1900 MHz spectrum in southwest Ontario,
northern Quebec, Yukon and the Northwest Territories; (iii) 20 MHz
of Advanced Wireless Services (“AWS”) spectrum across Canada,
which operates in the 1700/2100 MHz range; and (iv) 40 MHz of 2600
MHz spectrum across the majority of the country. The AWS spectrum,
together with the 2600 MHz spectrum that Wireless owns, is used to
provide 4G LTE services. Wireless expects to participate in an
upcoming auction by the Canadian government of 700 MHz spectrum
during 2013 or 2014, which is a frequency band also used for LTE in
North America.
Together with Bell Canada through a joint venture called Inukshuk,
Wireless also owns fixed broadband spectrum in the 2300 MHz and
3500 MHz range. This joint venture previously included 2500 MHz
spectrum, which was distributed to the venture partners late in 2012.
Rogers previously implemented a network-sharing arrangement with
Manitoba Telecom Services (“MTS”) for a 3.5G HSPA+ network
covering 96 percent of the population (“POPs”) across Manitoba. In
addition, Rogers also has a network-sharing arrangement with
Tbaytel that allows our combined base of customers to get 3.5G
HSPA+ services across Tbaytel’s northwest Ontario territory.
In January 2013, Rogers announced a multipart strategic transaction
with Shaw to secure an option to purchase Shaw’s AWS spectrum
holdings in 2014.
28 ROGERS COMMUNICATIONS INC. 2012 ANNUAL REPORT