Cogeco 2014 Annual Report Download - page 18

MD&A COGECO CABLE INC. 2014 17
In order to recover bandwidth necessary for HSI growth as well as additional HD channels, Atlantic Broadband is continuing with a multi-point
strategy to enhance the network and increase overall network performance:
(a) in markets where overall bandwidth is below 750 MHz, we are completing the conversion of video services from analogue to digital
with the deployment of DTA converters to our customers having older analogue television equipment. This significant capacity
enhancement will replace each analogue channel by up to four HD channels or sixteen SD channels. This program has been underway
for 2 years and the last of these systems is anticipated to be completed in fiscal 2015;
(b) in 750 MHz markets where we have a larger subscriber base, we are completing the implementation of SDV technology. This technology
allows Atlantic Broadband to selectively broadcast the digital television channels that are currently being viewed by customers, effectively
allowing it to offer a greater selection of digital channels over the same network infrastructure; and
(c) in 860 MHz and 1 GHz markets, we are using the available spectrum to add bonded DOCSIS channels to increase speeds and to
provide additional HD channels.
Cogeco Cable Canada and Atlantic Broadband use DOCSIS systems to deliver HSI and Business IP services over HFC networks. DOCSIS has
numerous advanced features, including the prioritization of packets to ensure a continuous transmission and high quality of service delivery. This
prioritization is important for services that need to be transmitted in real time, such as telephony service. In addition, this technology provides a
flexible and expandable platform to further increase IP transmission speeds up to 250 Mbps and beyond and for providing other products like
symmetrical services, which are particularly well suited for commercial customer applications.
Finally, Cogeco Cable Canada and Atlantic Broadband are deploying FTTH systems in all new residential developments which meet specific
criteria of size, proximity to the existing plant and service penetration rate. Cogeco Cable Canada and Atlantic Broadband use a FTTH technology
called RFoG. The primary benefit of RFoG is its compatibility backward and forward with existing Cable Modem Termination System ("CMTS")
investments and back-office systems. RFoG offers increased reliability, lower maintenance costs and is an excellent platform for the delivery of
enhanced video services and higher speed internet services in the future. Late in fiscal 2014, Atlantic Broadband became the first provider in the
greater Miami areas to offer FTTH and Metro-Ethernet services to the residents of Indian Creek Village, a high end residential neighborhood.
The RFoG technology is used to provide video and voice services. Metro-Ethernet technology is used to provide 1 Gbps symmetrical HSD
services. The high demographic nature of this market and the size of the estates have allowed us to offer this high level of service on a bulk basis
to 100% of the residents in that community.
The following table shows the percentage of homes passed in Canada and in the United States where Digital Television, VOD, HSI and Telephony
services were available as at August 31, 2014:
% of homes passed where service is available
Service Canada United States
Digital Television 99% 99%
Video On Demand 97% 86%
HSI (DOCSIS 2.0) 97% 99%
HSI (DOCSIS 3.0) 94% 94%
Telephony 95% 99%
ENTERPRISE DATA SERVICES NETWORKS AND INFRASTRUCTURE
Cogeco Enterprise Services Inc., a wholly-owned subsidiary of Cogeco Cable, is the parent company of Cogeco Data Services and Peer 1
Hosting.
Cogeco Enterprise Services provides its services through 20 data centres covering in aggregate more than 320,000 square feet and more than
50 points-of-presence in North America and Europe. Cogeco Enterprise Services owns one data centre in Barrie, north of Toronto, and has lease
agreements for all the other data centres and points-of-presence.
Cogeco Enterprise Services’ data centres include highly secure and geo-redundant IT infrastructure, including state of the art 24/7/365 monitoring,
regulated climate control, power redundancy, support, and biometrics security access. In addition, Cogeco Data Services data centres are built
to the Uptime Institute US Tier 3 standard level. Also, Cogeco Data Services has obtained certifications from the Canadian Standard on Assurance
Engagements ("CSAE") 3416 and Payment Card Industry Data Security Standard ("PCI-DSS"). With these standards and certifications, Cogeco
Data Services is able to meet the expectations of large enterprises and organizations.
During fiscal 2014, Cogeco Data Services has begun building an approximately 100,000 gross square feet data hosting facility in Montréal, which
is expected to open in early 2015. Cogeco Data Services’ Montréal data hosting centre will be built-out in many stages over several years, aligned
with the pace at which Cogeco Data Services secures multi-year contracts.
Cogeco Data Services provides its connectivity services through an extensive all-optical fibre optic network in Montréal and Toronto
and interconnections with other significant carriers. Peer 1 Hosting provides its services through an extensive fully-managed, all-optical fibre optic
network in location across North America and Europe.