Rogers 2014 Annual Report Download - page 34

MANAGEMENT’S DISCUSSION AND ANALYSIS
• a broad digital presence with a number of online publications that
continue the extension of content across new platforms; and
• Next Issue Canada, our digital magazine service which offers
unlimited access to a catalogue of nearly 150 premium Canadian
and US magazine titles.
Our NHL Agreement, beginning with the 2014-2015 NHL season,
allows us to deliver unprecedented coverage of professional hockey
across television, smartphones, tablets and Internet streaming,
including Rogers NHL GameCentre LIVE with more than 1,000 regular
season games streamed wirelessly and online.
In Sports Entertainment, we own the Toronto Blue Jays, Canada’s only
Major League Baseball (MLB) team, and 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 online and mobile digital media platforms include digital
advertising across websites and mobile platforms, digital content
subscriptions, and e-commerce solutions.
OTHER
Other services we offer to consumers and businesses include:
• local digital services:
• OutRank, an online marketing and advertising tool for small
businesses;
• Vicinity, an automated loyalty program for small businesses;
• Zoocasa, an online real estate platform with advanced online
tools and information from industry experts for buyers and sellers;
and
• Rogers Alerts, a program provided at no charge to Rogers
wireless customers that delivers location-based mobile offers
from participating retailers
• Rogers Smart Home Monitoring, an innovative home security and
automation system;
• Rogers First Rewards Loyalty Program, which allows Rogers
customers to earn loyalty points on Wireless and Cable products;
and
• Rogers First Rewards MasterCard, a no annual fee credit card that
allows customers to earn Rogers First Rewards points on credit card
spending.
OTHER INVESTMENTS
We hold interests in a number of associates and joint ventures, some of
which include:
• our 37.5% ownership interest in Maple Leaf Sports & Entertainment
Ltd. (MLSE), which owns the Toronto Maple Leafs, the Toronto
Raptors, the Toronto FC, and the Toronto Marlies, as well as various
associated real estate holdings;
• our joint venture in shomi, a new subscription video-on-demand
streaming service available both online and via cable set top boxes
with a library of over 11,000 hours of movies and past seasons of
some of the most popular TV shows; and
• our joint operation, Inukshuk Wireless Partnership, created to
operate a national fixed wireless telecommunications network to be
used by the partners of the joint operation and their subsidiaries.
COMPETITION
Competition in wireless from national and regional operators as well as
new entrants puts downward pressure on pricing, potentially reducing
profit margins, and can also impact our customer churn.
Traditional wireline telephone and television services are now offered
over the Internet, opening the door to more non-traditional
competitors, and changing how traditional providers compete. This is
changing the mix of packages and pricing that service providers offer
and impacts the levels of customer churn.
In the media industry, there continues to be a shift towards digital and
online media consumption by consumers which in turn drives
advertisers to direct more advertisingspendtodigitalandonline
versus traditional media. In addition, there are more media
competitors as additional digital and online media companies enter
the market, including large global companies.
WIRELESS
We compete on quality of service, scope of services, network
coverage, sophistication of wireless technology, breadth of
distribution, selection of devices, branding and positioning, and price.
• Wireless technology: our extensive LTE network caters to customers
seeking the increased capacity and speed it provides. We compete
with Bell, Telus, MTS, Videotron, Sasktel, and Eastlink, all of whom
operate LTE networks and we expect competition to grow over time
as LTE becomes the prevailing technology in Canada. We also
compete with these providers and other regional providers such as
Wind Mobile and Mobilicity on HSPA and GSM networks and with
providers that use alternative wireless technologies, like Wi-Fi
“hotspots”.
• Product, branding and pricing: we compete nationally with Bell and
Telus. We also compete with new entrants, various regional players
and resellers.
• Distribution: we compete with other service providers for both
dealersandprimelocationsforourownstoresaswellasthirdparty
retail distribution shelf space.
• Wireless networks and handset devices: the increasing parity of
wireless devices across networks has dramatically transformed the
competitive landscape, and we expect this to continue.
Consolidation among new entrants or with incumbent carriers could
further alter the competitive landscape for Wireless regionally or
nationally.
• Spectrum: Industry Canada has announced two spectrum auctions
to take place in 2015. The first auction for AWS-3 spectrum
comprising 1755-1780 MHz and 2155-2180 MHz bands will take
place on March 3, 2015. 30 MHz of the 50 MHz of paired spectrum
to be auctioned will be reserved for “operating new entrants”. The
second auction, for 2500 MHz spectrum, will start on April 14, 2015.
This auction includes a spectrum aggregation limit of 40 MHz. The
outcomes of both of these auctions may increase competition.
30 ROGERS COMMUNICATIONS INC. 2014 ANNUAL REPORT