Cogeco 2007 Annual Report Download - page 10

8 COGECO CABLE INC. 2007 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 hybrid fi bre and co-axial cable broadband
networks. The Corporation provides its residential and business customers with Analogue and Digital Television as well
as HSI and Telephony services. In Canada, the Corporation provides, as at August 31, 2007, Basic Cable service to 849,157
customers, Digital Television services to 379,879 customers, HSI services to 415,836 customers and Telephony service to
143,636 customers. In Portugal, through its subsidiary Cabovisão, Cogeco Cable provides, as at August 31, 2007, Basic Cable
service to 294,003 customers, HSI services to 160,023 customers and Telephony service to 243,131 customers.
CORPORATE OBJECTIVES AND STRATEGIES
Cogeco Cable’s business objectives are all centred on improving profi tability and creating value for shareholders. To achieve
these objectives, the strategies employed consist of sustained growth, continuous improvement of networks and equipment
to reduce costs while offering better customer service and improved business processes to reduce costs and provide better
operating controls.
SUSTAINED CORPORATE GROWTH
Cogeco Cable’s growth strategy is driven by a focus on customer satisfaction. By constantly improving its product and
service offerings, the Corporation attracts new customers and, by extension ensures sustained growth. To meet the growing
consumer demands, 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 offerings as well as its superior
level of customer service, not only attract new customers, they entice 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 should constantly meet—or exceed—
the demands of its clients in its various markets. The Corporation offers a full array of broadband telecommunications
products and services, such as Analogue and Digital Television, HD, VOD, SVOD, HSI and Telephony, individually and in
bundle of services.
In Canada, the Corporation expects its
Cogeco Complete Connection , which includes Digital Television, HSI and Telephony
services, to continue to play a major role in generating revenue growth. 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 offer by gradually
proposing a more diverse offering according to availability; and its HSI service offer by introducing constant enhancements
to its services in order to meet the growing expectations of its customers.
In Portugal, beside the continuous Analogue Television, HSI and Telephony service penetration improvements, marketing
efforts better targeted to the market needs will be implemented to support an enhanced product and service offerings.
During 2008, the Corporation will continue the deployment of its Digital Television service to many of its customers.
The introduction of this service paves the way to a unique television experience, which will eventually allow interactivity and
VOD.
These strategies should generate customer growth and increase ARPU, thus generating higher revenue.
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 and continually invests to improve its network and to purchase technologically advanced equipment.