Cogeco 2006 Annual Report Download - page 10

8 COGECO CABLE INC. 2006 Management’s Discussion and Analysis
OVERVIEW OF THE BUSINESS
Cogeco Cable is the second largest cable system operator in Ontario, Québec and Portugal in terms of the number of
basic cable service customers served. The Corporation’s operations are supported by cutting-edge hybrid fi bre and co-axial
cable broadband networks. The Corporation provides its residential and business customers with audio services, analog
and Digital Television as well as HSI and Telephony services. In Canada, the Corporation provides basic cable service
to 833,177 customers, Digital Television services to 327,364 customers, HSI services to 343,080 customers, and Digital
Telephony service to 52,315 customers. In Portugal, through its subsidiary Cabovisão, Cogeco Cable provides basic cable
service to 269,694 customers, HSI services to 136,278 customers, and Telephony service to 223,069 customers.
CORPORATE OBJECTIVES AND STRATEGIES
Cogeco Cable’s business objectives all center on improving profi tability and creating value for shareholders. To achieve
these objectives, the strategies employed consist of sustained business growth, continuous improvement of networks and
equipment, and tight control over the Corporation’s costs and business processes and the integration of Cabovisão.
SUSTAINED CORPORATE GROWTH
Cogeco Cable’s growth strategy is driven by a focus on customer satisfaction. By constantly improving its product and
service offering, the Corporation attracts new customers and, by extension ensures sustained growth. To meet the growing
demands of consumers, Cogeco Cable makes its decisions based on research studies conducted with customers, on
analyses of the trends occurring in its markets, and by taking into account industry developments in the formulation
of its strategies. Furthermore, the continuous improvement of the Corporation’s product and service offering as well
as its superior level of customer service not only attracts new customers, it entices existing customers to subscribe to
the Corporation’s other services.
CONTINUOUS IMPROVEMENT OF THE SERVICE OFFERING AND A LARGER CUSTOMER BASE
The Corporation’s product and service offerings are adapted regularly so that it constantly meets—or exceeds—the demands
of its clients in its various markets. The Corporation offers a full array of broadband telecommunications products and
services such as analog television, Digital Television, HD, VOD, SVOD, HSI, and Telephony.
In Canada, the Corporation expects its new Digital Telephony service to continue to play a major role in revenue growth.
Cogeco Cable will continue to deploy its Digital Telephony service in most of its territories. In addition, the Corporation will
continue to improve its VOD offer, by forging new partnerships with major studios and other program suppliers; its HD
Television, by gradually proposing a more diverse offering according to availability; and its HSI services, by maintaining
the offer to meet the growing expectations of its customers.
In Portugal, marketing efforts more appropriately targeted to the Portuguese market will be launched in support of an
improved product and service offering. During 2007, the Corporation plans to begin the deployment of its Digital Television
service to many of its Portuguese customers. This service will open the door to a unique television experience by allowing
for interactivity, and eventually, VOD.
These strategies should generate higher operating revenue by way of customer growth.
CONTINUOUS IMPROVEMENT OF NETWORKS AND EQUIPMENT
To make sure that it can support the development of new quality services, Cogeco Cable keeps a close eye on technological
advancements made in its industry and continually invests in network improvements and purchases of appropriate equipment.
Cogeco Cable constantly strives to benefi t from advancements in digital compression and multiplexing techniques in
order to deliver the best possible signal quality to its customers. As for HSI services, the platform is constantly adapted to
support the growth in subscriber numbers.
The Canadian networks can support the deployment of new services such as Digital Telephony in most sectors, reaching
77% by December 31, 2006.