Cogeco 2002 Annual Report Download - page 21

20 Cogeco Cable Inc.
Operational Factors
Cogeco Cable currently uses two different proprietary
cable customer management systems for its Quebec
and Ontario operations respectively. Demands on these
information systems have increased substantially in the
past few years, and it has become increasingly difficult
to manage the changes required by the diverse and
rapidly changing cable service offerings in a highly
competitive environment. Cogeco Cable is still consid-
ering a range of options for the development and
integration of its cable customer management systems.
The changes contemplated have potentially
wide-reaching implications in terms of operating cost
s t r u c t u re, productivity gains, competitiveness, integrated
billing, and customer relationship management. There is
no assurance that existing agreements with customer
information system providers can be extended with
satisfactory terms and conditions beyond the next
18 months, or that more suitable or cost-effective systems
can be effectively deployed in the alternative within the
required timeframe.
During fiscal year 2002–2003, negotiations are expected
to take place for the renewal of the collective labour
a g reement covering most of Cogeco Cable’s employees
in the province of Quebec. Cogeco Cable considers its
labour relations to be satisfactory. While Cogeco Cable
does not anticipate any labour disruption, it is not possible,
at this time, to assess the impact of these negotiations
on operations or future operating costs.
Regulatory and Legal Factors
The broadcasting and telecommunications activities
of Cogeco Cable are subject to varied and extensive
regulatory re q u i rements, mainly under the authority
of federal statutes governing broadcasting,
telecommunications, radiocommunication and copyright.
Cogeco Cable’s distribution systems are operated
pursuant to licences issued by the CRTC, which are
subject to renewals and various terms and conditions
set by the regulatory agency. Regulatory policies evolve
over time and may cause the competitive playing field
and business prospects for individual market participants
or properties to be materially different.
Judicial decisions on a number of issues affecting the
cable industry in Canada are still pending, including the
ability of the CRTC to set terms for the use of support
structures of municipal electric utilities and access to
municipal rights-of-way, copyright fees for content
stored on cache servers in connection with Internet
access services, and the unauthorized reception of
satellite signals based on the Canadian Charter of
Rights and Freedoms.