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Cable Is One of Canada's Largest Providers of Cable

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Cable Is One of Canada's Largest Providers of Cable MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS WIRELESS ACquISITION with major Canadian brands. The acquisition was accounted for using Acquisition of Cityfone Telecommunications Inc. the acquisition method with the results of operations consolidated On July 9, 2010, we acquired the assets of Cityfone for cash with those of ours effective July 9, 2010. consideration of $26 million. Cityfone is a Canadian Mobile Virtual Wireless Additions to Property, Plant and Equipment Network Operator and offers postpaid wireless voice and data services Wireless additions to PP&E are classified into the following categories: to approximately 44,000 subscribers through private label programs Years ended December 31, (In millions of dollars) 2010 2009 % Chg Additions to PP&E Capacity $ 446 $ 498 (10) Quality 284 199 43 Network – other 61 39 56 Information technology and other 146 129 13 Total additions to PP&E $ 937 $ 865 8 Wireless PP&E additions for 2010 reflect spending on network capacity, CABLE such as radio channel additions, network core improvements and network enhancing features, including the continued deployment of CABLE’S BUSINESS our HSPA+ network. Quality-related additions to PP&E are associated Cable is one of Canada’s largest providers of cable television, high- with upgrades to the network to enable higher throughput speeds, in speed Internet access and cable telephony services, and is also addition to improved network access associated activities such as site a facilities-based telecommunications alternative to the traditional build programs and network sectorization work. Moreover, Quality telephone companies. Its business consists of the following three includes test and monitoring equipment and operating support system segments: activities. Investments in Network – other are associated with network reliability and renewal initiatives, infrastructure upgrades and new The Cable Operations segment has 2.3 million television subscribers at product platforms. Information technology and other wireless specific December 31, 2010, representing approximately 29% of all television system initiatives include billing and back-office system upgrades, and subscribers in Canada. At December 31, 2010, it provided digital cable other facilities and equipment spending. services to approximately 1.7 million of its television subscribers and high-speed Internet service to approximately 1.7 million residential The increase in Wireless PP&E additions for 2010 is largely due to subscribers. It provides local telephone and long-distance services Quality-related deployment of additional cell sites into the network, under the Rogers Home Phone brand to residential customers with while the increase in Network – other spending reflects deployment of both voice-over-cable and circuit-switched technologies with over a cross-platform feature enablement. The increase in information million subscriber lines at December 31, 2010. technology and other was driven primarily by an enterprise data warehouse project and start up of the chatr brand during the year. The Rogers Business Solutions (“RBS”) segment of Cable offers local and These increases were partially offset by the decrease in capacity related long-distance telephone, enhanced voice and data networking to completion of the HSPA 21Mbps roll-out program in 2010. services, and IP access to medium and large Canadian businesses and governments, as well as making some of these offerings available on a During 2010, we announced the start of technical trials of next wholesale basis to other telecommunications providers and within RCI. generation LTE wireless network technology in various frequency At December 31, 2010, there were 146,000 local line equivalents and bands in the Ottawa area to better understand and plan for LTE data 42,000 broadband data circuits in service. Cable and RBS are increasingly throughput speeds, performance quality and the interoperability of focusing its business segment sales efforts within its traditional cable LTE with our existing HSPA+ network. television footprint, where it is able to provide and serve customers with voice and data telephony services provided over its own infrastructure. WIRELESS ADDITIONS TO PP&E The Rogers Retail segment operates a retail distribution chain with approximately 400 stores at December 31, 2010, many of which provide customers with the ability to purchase all of Rogers’ primary services (cable television, Internet, cable telephony and wireless), pay their IT & Other 16% Rogers bills, and pick up or return Rogers digital and Internet Network – Other 6% equipment. The segment also offers digital video disc (“DVD”) and Capacity 48% video game sales and rentals. Quality 30% 30 ROGERS COMMUNICATIONS INC. 2010 ANNUAL REPORT.
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