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MD&A COGECO CABLE INC. 2015 9
2. OVERVIEW OF THE BUSINESS
Cogeco Cable is a communications corporation. It is the 11th largest cable operator in North America. In fiscal 2015, the Corporation reported its
operating results in three operating segments: Canadian cable services, American cable services and Enterprise data services. The reporting
structure reflects how the Corporation manages its business activities to make decisions about resources to be allocated to the segments and
to assess their performance. For the year ended August 31, 2015 the proportion of each segment as a percentage of the Corporation's consolidated
revenue and adjusted EBITDA(1) excluding eliminations of intercompany transactions and head office activities were as follows:
For further details on the Corporation's segmented operating results, please refer to the “Segmented operating results” section.
2.1 CANADIAN AND AMERICAN CABLE SERVICES
DESCRIPTION OF SERVICES
The Canadian and American cable services segments provide a wide range of video, Internet and telephony services primarily to residential
customers. The Canadian and American cable services segments also provide business services to small and medium sized businesses across
its coverage areas. The Canadian cable services activities are carried out by Cogeco Cable Canada in the Provinces of Québec and Ontario and
the American cable services activities are carried out by Atlantic Broadband in western Pennsylvania, south Florida, Maryland/Delaware, South
Carolina and eastern Connecticut.
At August 31, 2015, the Canadian cable services segment provided video service to 765,358 customers, Internet service to 704,555 customers
and telephony service to 456,629 customers for a total of 1,926,542 Primary service units(2) ("PSU"). The American cable services segment
provided video service to 249,303 customers, Internet service to 229,915 customers and telephony service to 91,942 customers for a total of
571,160 PSU.
The following four services represent our core suite of offerings:
Video services: We offer our customers a full array of video services and programming offerings of mainly full digital video services. Our
customers have access to a basic service, pay and discretionary services, On-demand services, high definition television ("HDTV") and advanced
video services such as TiVo.
Internet services: In most of our territories (where DOCSIS 3.0 technology is deployed), we offer Internet packages with different transfer speeds,
monthly data transfer capacities and service attributes. Simple and effective security and email solutions are available to our Internet customers
with automatic updates to protect their devices. As an added benefit, Internet customers can connect wirelessly to the Internet at no extra cost
from over 1600 designated wireless WiFi Internet hotspots in our Canadian footprint.
Telephony services: Telephony service uses Internet protocol ("IP") to transport digitised voice signals over the same private network that brings
video and Internet services to customers. Residential customers can subscribe to different packages. All residential telephony service customers
have access to direct international calling and can subscribe to various international long distance plans, voicemail and other popular custom
calling features.
Business services: We offer a wide range of broadband Internet packages, telephony services and other advanced network connectivity services,
such as Session Initiation Protocol ("SIP"), Primary Rate Interface ("PRI") trunk solutions, Hosted Private Branch Exchange ("PBX") solutions
and Business and Software efficiency services, are available to our business customers, depending on the area.
(1) The indicated terms do not have standardized definitions prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other
companies. For more details, please consult the “Non-IFRS financial measures” section of the MD&A.
(2) Represents the sum of video, Internet and telephony service customers.