Rogers 2013 Annual Report Download - page 36

MANAGEMENT’S DISCUSSION AND ANALYSIS
OUR STRATEGY
To achieve our vision and drive our future growth, we have six strategic objectives. We made significant progress this year
against each of these, across all business segments. See “Key Highlights” for more detail about individual highlights.
1. DELIVER DIFFERENTIATED END-TO-END
CUSTOMER EXPERIENCES
Focus on evolving our cross-device, multi-screen integration to enable
seamless, reliable and easy-to-use product experiences anytime,
anyplace and anywhere; on delivering a differentiated range of devices
and device-related services; and on enabling greater integration of our
media assets across screens.
OUR PROGRESS IN 2013
We continued to evolve our wireless offering this year, redesigning and
simplifying wireless offerings and pricing tiers, and introducing
Canada’s first wireless Share Everything plan. We also launched a hybrid
wireless home and small business phone solution that operates on our
national wireless network.
Cable unveiled the next generation of TV experience with NextBox 3.0,
and Media made significant progress this year, announcing a landmark
exclusive 12-year licensing agreement to broadcast national NHL
games, launching a subscription digital magazine service, upgrading
The Shopping Channel, and including adding a mobile app and social
media. It also launched Sportsnet 360, and announced a 10-year
partnership extension with the Vancouver Canucks.
2. MAINTAIN INDUSTRY-LEADING NETWORKS
Reinforce our network’s reliability and speed to capture and monetize
the growth in data consumption by expanding our LTE network to a
wider proportion of the Canadian population, continuing to increase
broadband Internet speeds, and further enhancing our TV platforms
with next generation features and functionality.
OUR PROGRESS IN 2013
We continued to expand our high speed wireless LTE 4G broadband
network this year, and offered the largest selection of LTE devices of
any carrier in Canada. Our LTE 4G network was the first in Canada,
which covered approximately 73%of the Canadian population at
December 31, 2013.
We were also recognized for our networks: PCMag.com named us
Canada’s fastest broadband Internet service provider and wireless
network in October 2013, and SamKnows stated through in-home
testing in May 2013, that we delivered, on average, 100%or more of
our advertised download speeds on our most popular Internet
packages, better than most providers they tested in the US and Europe.
3. EXPAND OUR SERVICES REACH
Expand the reach of our networks and services through new
construction and targeted acquisitions that complement our existing
platforms; by more widely deploying products and services; and by
expanding the reach of our key media brands nationally and across our
digital platforms.
OUR PROGRESS IN 2013
We expanded our wireless network by establishing key network sharing
agreements to bring LTE to more customers at faster speeds to
customers in Manitoba, Quebec and the Ottawa region, and through
our relationship with AT&T to become the first Canadian carrier to offer
LTE roaming for customers travelling to the US. We also secured an
option to buy Shaw’s Advanced Wireless Service (AWS) spectrum
holdings.
We launched new products, including Rogers Smart Home Monitoring,
to customers in Ontario’s Golden Horseshoe area and Atlantic Canada.
We completed several strategic acquisitions this year that strengthened
our offering of cable television, Internet and telephony services in the
Hamilton, Ontario area, established Business Solutions as a leader in
Canadian data centre and hosting services and increased the reach of
our television broadcast network to over 80%of Canadian households.
4. STRENGTHEN THE CUSTOMER EXPERIENCE
Constantly improve the experience that customers have using our
products and services by making it easier for them, providing the tools
and resources customers need to use our products with confidence,
being attuned to our customers’ evolving needs and continuing to
simplify our product offerings.
OUR PROGRESS IN 2013
We launched several new programs this year to improve the customer
experience, including Canada’s first Share Everything plans for
individuals, families and small businesses, our “worry free” $7.99 per
day US wireless data roaming plan, a new suite of simplified travel value
packs of voice, text and data roaming, and the Rogers First Rewards
loyalty program, and we received regulatory approval for the Rogers
credit card. Connected for Success, our new broadband Internet pilot
project is designed to provide affordable broadband Internet,
computers and software to residents of Toronto Community Housing as
part of the Rogers Youth Fund program.
5. IMPROVE PRODUCTIVITY AND COST STRUCTURE
Continue to focus on cost-optimization initiatives and organizational
efficiency by improving service delivery, reducing complexity, focusing
on fewer projects with more impact, managing expenses and working
more closely with key suppliers.
OUR PROGRESS IN 2013
We continued to make progress on our cost efficiency initiatives this
year, which contributed to a 3%increase in consolidated adjusted
operating profit and a 6 basis point increase in our consolidated
adjusted operating profit margin to 39.3%, driven mostly by Wireless
and Cable.
6. DRIVE FUTURE GROWTH OPPORTUNITIES
Continue to develop targeted new growth areas of our business,
including machine-to-machine (M2M) communications, mobile
commerce and video, business communications services, local and
digital media services, home automation and sports.
OUR PROGRESS IN 2013
We made strides in the M2M market this year, demonstrating a single,
worldwide SIM card with our M2M global alliance partners that will
strengthen our M2M offering to multinational customers, and
announcing an M2M agreement with Sprint to bring a comprehensive
in-car infotainment solution to the Canadian market. We also certified
the Suretap wallet, our mobile payment service, for the Android and
BlackBerry 10 operating smartphone systems. We received a licence to
operate a bank for the purposes of launching a Rogers’ branded credit
card. In addition, we expanded our Rogers Smart Home Monitoring
footprint, and launched other initiatives such as Outrank, an online site
for marketing and advertising small business, introduced Rogers Alerts
and other digital opportunities.
32 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT