Rogers 2012 Annual Report Download - page 40

Download and view the complete annual report

Please find page 40 of the 2012 Rogers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 122

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

MANAGEMENT’S DISCUSSION AND ANALYSIS
• Wireless activated and upgraded nearly 2.9 million smartphones,
predominantly iPhone, Android and BlackBerry devices, helping
bring smartphone penetration to 69% of the postpaid subscriber
base.
• Wireless expanded Canada’s first LTE 4G broadband network to
cover approximately 60% of the population of the country, and
continued to offer the largest selection of LTE devices of any carrier
in Canada.
• Together with CIBC, Rogers pioneered the first point-of-sale mobile
credit card solution in Canada. The service allows Canadians to pay
for purchases with their CIBC credit card wirelessly using the secure
SIM card inside an NFC-enabled Rogers BlackBerry. This historic first
– enabled by Rogers’ innovative network platform – has put
Canada on the world stage as a leader in mobile commerce
innovation.
• Wireless introduced the “FLEXtab” wireless device upgrade
program. It gives postpaid customers more flexibility than ever to
opt for an early wireless device upgrade by simply paying a
prorated portion of the unamortized subsidy at any point during
their contract term.
• Wireless redesigned and simplified its wireless offers and pricing
tiers, reducing the complexity and service times for our sales and
support teams. These new plans offer unlimited voice and text and
a range of wireless data usage and device sharing options to meet
the needs of our increasingly data-centric customer base.
• Wireless launched another industry first, Rogers One Number, an
IP-based service that allows Canadians to extend their Rogers
Wireless phone number to their computer, tablet or home phone.
Available exclusively to Rogers Wireless customers, the unique
service lets customers text, talk and video chat with other Rogers
One Number users from their various devices, all using their Rogers
Wireless cellular number. This seamless, easy-to-use solution is
simplifying how Canadians connect with family and friends.
• Rogers and Wavefront opened the doors to a new Rogers Wireless
Innovation Centre in Vancouver, Toronto and Montreal. The Centre
will support current and emerging developers to get to market
faster with innovative applications for connected devices to
strengthen the wireless developer ecosystem in Canada, as well as
educate companies about the benefits of M2M technology.
• Wireless announced an alliance with international mobile
operators KPN, NTT Docomo, SingTel, Telefónica, Telstra and
Vimpelcom to co-operate on global M2M business initiatives. The
intent is to support a single, global platform that multinational
customers can leverage to enable connected devices in multiple
countries to better manage operations and reduce costs. Rogers is
Canada’s M2M leader, committed to providing the enterprise tools
and platforms for rapid delivery of next generation M2M
connectivity across industries and market segments.
• Wireless announced an alliance with Axeda Corporation that will
accelerate the deployment and reduce the complexity around the
development of M2M solutions in Canada. Rogers and SAP
announced plans to deploy enterprise mobile applications that
leverage the SAP mobile platform. This exclusive new offering will
help simplify the way organizations mobilize their workforce,
giving employees real-time access to enterprise mobile applications
on tablets and smartphones that are traditionally used on desktop
computers.
(In millions of dollars)
WIRELESS NETWORK
REVENUE
$6,526 $6,601 $6,719
2010 2011 2012
(In millions of dollars)
WIRELESS ADJUSTED
OPERATING PROFIT
$3,173 $3,036 $3,063
2010 2011 2012
Summarized Wireless Subscriber Results
The following table summarizes our Wireless subscriber results for
2012 and 2011.
Years ended December 31,
(Subscriber statistics in thousands, except
ARPU and churn) 2012 2011 Chg
Postpaid
Gross additions 1,457 1,449 8
Net additions 268 269 (1)
Total postpaid subscribers(1) 7,846 7,574 272
Monthly churn 1.29% 1.32% (0.03) pts
Monthly average revenue
per user (“ARPU”)(2) $ 69.30 $ 70.26 $(0.96)
Prepaid
Gross additions 627 845 (218)
Net additions(losses) (170) 109 (279)
Total prepaid subscribers 1,591 1,761 (170)
Monthly churn 3.98% 3.64% 0.34 pts
ARPU(2) $ 15.84 $ 16.02 $(0.18)
Blended ARPU(2) $ 59.79 $ 60.20 $(0.41)
Data ARPU 24.22 21.21 3.01
Voice ARPU 35.57 38.99 (3.42)
(1) On August 29, 2012, Wireless completed the acquisition of a customer base from
a third-party reseller, which increased Wireless’ subscriber base by 4,000
subscribers.
(2) As defined. See the section “Key Performance Indicators and Non-GAAP
Measures”.
36 ROGERS COMMUNICATIONS INC. 2012 ANNUAL REPORT