ROGERS CASE.Pdf

Total Page:16

File Type:pdf, Size:1020Kb

ROGERS CASE.Pdf 3. S w 9B11M015 1 ROGERS COMMUNICATIONS INC. Kevin Melhuish wrote this case under the supervision of Professor Ariff Kachra solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail [email protected]. Copyright © 2011, Richard Ivey School of Business Foundation Version: 2011-05-03 Always keep the number one in the market in your cross-hairs. Avoid getting distracted by targeting number four or five. There’s a reason those companies are not number one. 2 Always aim high and look for vulnerability in the market leader. –Ted Rogers, Founder of Rogers Communications Inc. Nadir Mohamed, president and chief executive officer (CEO) of Rogers Communications Inc. (Rogers) considered these words from the company’s founder, Edward ‘Ted’ S. Rogers. It had been nearly two years since Mohamed had taken the reins of the company following Ted’s death at the age of 75. During this interval, competition in the telecommunications industry in Canada had intensified and brought an assembly of changes. Innovation was at an all-time high, and the notoriously rapid pace of change in the industry was accelerating. Rogers was a force to be reckoned with in all areas of the telecommunications sector including wireless, television, Internet and landline telephone. Rogers had impressive 2009 results, growing profits by approximately 23 per cent from the previous year, but Mohamed still contemplated the Use outside these parameters is a copyright violation. future growth opportunities of the company that he now controlled. From his vantage point on the 10th floor of Rogers’ corporate headquarters, Mohamed could see Ted’s former office, which had since been converted into a boardroom. As he stared across the hall, Mohamed asked himself two pressing questions: What were Rogers’ vulnerabilities, and what should be the strategic direction of the company moving forward? THE TELECOMMUNICATIONS INDUSTRY There was an intense race for market share in the telecommunications industry: consider that in 2009, Rogers incurred expenses of $4333,4 to acquire each new customer. By comparison, Rogers’ two biggest For use only in the course Administrative Policy at University of Manitoba taught by Jijun Gao from May 06, 2019 to August 02, 2019. 1 This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives presented in this case are not necessarily those of Rogers Communications Inc. or any of its employees. 2 Ted Rogers and Robert Brehl, Relentless: The True Story of the Man Behind Rogers Communications, HarperCollins, Toronto, 2008, p. 115. 3 All amounts are denominated in Canadian dollars unless otherwise indicated. 4 Rogers Communications Inc. 2009 Annual Report. 29 Page 2 9B11M015 competitive threats, BCE (Bell) and Telus, had costs of acquisitions of $3505 and $337,6 respectively. To retain existing customers, Rogers offered discounts of five, 10 and 15 per cent, respectively, for those who bundled two (double play), three (triple play) or four (quadruple play) services together (see Exhibit 1). Bundling also helped to reduce churn, which was the percentage of customers who discontinued their services and often switched to a competitor over a given period of time. Historical churn rates in Canada had ranged from between 1.00 to 1.70 per cent.7 Wireless technologies, and more specifically mobile devices, were driving revenues in this capital intensive industry. Prior to the emergence of wireless, wireline technologies such as television, Internet and landline telephone services fuelled the industry’s growth. Wireless Rogers, Bell and Telus were Canada’s three national wireless carriers and collectively serviced approximately 95 per cent of the country’s total subscribers. Rogers owned 37 per cent market share representing 8.5 million customers, and competed in the wireless marketplace under its Rogers Wireless, Fido and Chatr brands. Bell controlled 30 per cent market share, serving 6.8 million customers under its Bell Mobility, Virgin Mobile and Solo Mobile brands, while Telus claimed 28 per cent market share representing 6.5 million customers under its three brands: Telus Mobility, Koodo and Mike. Each flagship and discount brand offered similar voice and data plans that were competitively priced. Each carrier also had comparable relationships with major mobile device suppliers, and provided a portfolio of smart phones and talk-and-text cell phones that were available to their consumers and enterprise customers. For selected year-over-year wireless and wireline customer statistics across competitors, (see Exhibit 2: from 2006 to 2009 Rogers’ and Telus’ wireless subscriber base has grown by 8 and 9 per cent respectively. Bell’s subscriber growth rate has been five per cent. Wireless penetration in Canada, meaning the percentage of the population who owned a mobile device, was 69 per cent in 2009. Penetration in Canada was expected to grow by approximately four to five percentage points each year for the next several years. By comparison, the United States had a penetration rate of 93 per cent, while residents of the United Kingdom had more than one device apiece at 129 per cent penetration. Globally, the most significant growth for wireless was in the Asia-Pacific region: China and Use outside these parameters is a copyright violation. India both had relatively low levels of penetration at 46 per cent and 30 per cent, respectively.8 Mobile Devices Rogers and Bell had undertaken similar strategies in recent years by pushing customers to adopt smart phones, while Telus had focused on price-sensitive customers that used talk-and-text devices. More than half of Canada’s smart phone users were Rogers' subscribers, and 31 per cent of all Rogers Wireless customers were smart phone users in 2009, up from 19 per cent in 2008. Furthermore, Rogers activated approximately 1.5 million smart phones in 2009, of which 55 per cent were upgrades from existing customers while 45 per cent were from new subscribers. For use only in the course Administrative Policy at University of Manitoba taught by Jijun Gao from May 06, 2019 to August 02, 2019. 5 BCE Inc. 2009 Annual Report. 6 Telus Corporation 2009 Annual Report. 7 Rogers, BCE and Telus Annual Reports. 8 “Asia Pacific Mobile Observatory: The Parallel Development Paths of the Mobile Industry in Asia Pacific,” GSM Association and A.T. Kearney, http://www.atkearney.com/images/global/pdf/GSMA_AsiaReport.pdf, accessed on June 27, 2010. 30 Page 3 9B11M015 Nokia, Samsung and LG had the most significant presence amongst mobile device manufacturers globally, and controlled approximately 28, 17 and seven per cent of total worldwide market share, respectively. 9 Apple and Research in Motion (RIM) were the fourth and fifth largest global suppliers, each owning approximately three per cent total worldwide market share. In Canada and the United States, however, RIM and Apple were the most prominent mobile device manufacturers with approximately 12 per cent market share each and used their own proprietary software on their devices. Conversely, Google’s open- source software, Android, was the most widely adopted mobile operating system in North America, and more than one-quarter of all smart phones worldwide were Android devices. Samsung was the top Android seller worldwide, but other mobile device manufacturers including Motorola and HTC used Android software on select devices. RIM’s relationship with Rogers and Bell dated back to 2000, while Telus first partnered with the BlackBerry manufacturer in 2003. Initially targeted towards enterprise customers, RIM had begun to increase its presence within the consumer segment. In 2009, RIM provided services to approximately 25 million subscribers on more than 475 wireless carriers worldwide, and BlackBerry handheld sales accounted for 82 per cent of RIM’s total revenues. Service contributed to 13 per cent of RIM’s revenues, while other software accessories tallied the remaining five per cent of the company’s top-line.10 Geographically distributed, 63 per cent of RIM’s revenues came from the United States, eight per cent from Canada, six per cent from the United Kingdom and 23 per cent from the rest of the world.11 Apple launched the iPhone in Canada in July 2008; Rogers remained the exclusive Canadian provider of the iPhone until November 2009, when Bell and Telus gained access to the device upon upgrading their wireless networks. Originally launched as a consumer product, Apple had seen its market share increase in the enterprise segment. In 2009, iPhone sales made up approximately 18 per cent of Apple’s total revenues, while Macs (Apple’s personal computer product) generated 38 per cent of the company’s top-line; in addition, iPod and iTunes sales respectively contributed 22 per cent and 11 per cent of the company’s total revenues.12 Apple also launched the iPad, its tablet computer product in 2010. RIM’s response to the iPad, the BlackBerry Playbook, was scheduled to be released in 2011. The relationship between mobile device manufacturers, wireless carriers and consumers was interesting, especially given that consumers were demanding more sophisticated devices such as new BlackBerry and iPhone models that commanded high price points. As a stand-alone device, an iPhone cost between $650 Use outside these parameters is a copyright violation. and $750 depending on the model, yet consumers only paid between $150 and $250 for the newest device.
Recommended publications
  • ROGERS COMMUNICATIONS INC. ANNUAL INFORMATION FORM (For
    ROGERS COMMUNICATIONS INC. ANNUAL INFORMATION FORM (for the fiscal year ended December 31, 2007) March 4, 2008 ROGERS COMMUNICATIONS INC. ANNUAL INFORMATION FORM INDEX The following is an index of the Annual Information Form of Rogers Communications Inc. (“RCI”) referencing the requirements of Form 51-102F2 of the Canadian Securities Administrators. Certain parts of this Annual Information Form are contained in RCI’s Management’s Discussion and Analysis for the fiscal year ended December 31, 2007, and RCI’s 2007 Annual Audited Consolidated Financial Statements, each of which is filed on SEDAR at www.sedar.com and incorporated herein by reference as noted below. Page reference / incorporated by reference from Annual Information 2007 Form MD&A Item 1 — Cover Page p. 1 Item 2 — Index p. 2 Item 3 — Corporate Structure 3.1 — Name and Incorporation p. 3 3.2 — Intercorporate Relationships pgs. 3-5 Item 4 — General Development of the Business 4.1 — Three Year History pgs. 6-10 4.2 — Significant Acquisitions p. 10 Item 5 — Narrative Description of the Business 5.1 — General — Business Overview p. 11 p. 2 — Rogers Wireless pgs. 10-12 — Rogers Cable pgs. 16-19 — Rogers Media pgs. 25-26 — Employees p. 9 — Properties, Trademarks, Environmental and Other Matters pgs. 10-11 5.2 — Risk Factors p. 11 Item 6 — Dividends 6.1 — Dividends p. 12 Item 7 — Description of Capital Structure 7.1 — General Description of Capital Structure p. 12 7.2 — Constraints pgs. 12-13 7.3 — Ratings pgs. 13-14 Item 8 — Market for Securities 8.1 — Trading Price and Volume p.
    [Show full text]
  • 2017-18 Annual Report
    Helping Canadians for 10+ YEARS 2017-18 ANNUAL REPORT “I was very impressed with your services” – L.T., wireless customer in BC “I was very satisfied with the process.” – H.R., internet customer in ON “Awesome service. We are very content with the service and resolution.” – G.C., phone customer in NS “My agent was nice and super understanding” – D.W., TV customer in NB “I was very impressed with your services” – L.T., wireless customer in BC “I was very satisfied with the process.”– H.R., internet customer in ON “Awesome service. We are very content with the service and resolution.” – G.C., phone customer in NS “My agent was nice and super understanding” – D.W., TV customer in NB “I was very impressed with your services” – L.T., wireless customer in BC “I was very satisfied with the process.”– H.R., internet customer in ON “Awesome service. We are very content with the service and resolution.” – G.C., phone customer in NS “My agent was nice and super understanding” – D.W., TV customer in NB “I was very impressed with your services” –L.T., wireless customer in BC “I was very satisfied with the process.” – H.R., internet customer in ON “Awesome service. We are very content with the service and resolution.” – G.C., phone customer in NS “My agent was nice and super understanding” – D.W., TV customer in NB “I was very impressed with your services” – L.T., wireless customer in BC P.O. Box 56067 – Minto Place RO, Ottawa, ON K1R 7Z1 www.ccts-cprst.ca [email protected] 1-888-221-1687 TTY: 1-877-782-2384 Fax: 1-877-782-2924 CONTENTS 2017-18
    [Show full text]
  • Résidant Au Personne Morale Légalement Constituée, Ayant Sa
    CANADA COUR SUPÉRIEURE (Chambre des actions collectives) PROVINCE DE QUÉBEC DISTRICT DE MONTRÉAL CHRISTOPHER ZAKEM, domicilié et résidant au No. : 500-06- Demandeur C. ROGERS COMMUNICATIONS CANADA INC., personne morale légalement constituée, ayant sa principale place d'affaires au Québec, au 800 rue De La Gauchetière ouest, bureau 4000, Montréal (Québec) H5A 1K3; Défenderesse DEMANDE POUR AUTORISATION D'EXERCER UNE ACTION COLLECTIVE ET POUR ÊTRE REPRÉSENTANT À L'UN DES HONORABLES JUGES DE LA COUR SUPÉRIEURE, SIÉGEANT EN CHAMBRE DES ACTIONS COLLECTIVES, DANS ET POUR LE DISTRICT JUDICIAIRE DE MONTRÉAL, LE DEMANDEUR EXPOSE RESPECTUEUSEMENT CE QUI SUIT : 1. INTRODUCTION 1. Le demandeur Christopher Zakem (le « Demandeur ») s'adresse à la Cour dans le but d'obtenir l'autorisation d'exercer une action collective pour et au nom des membres du Groupe ci-après défini contre la défenderesse Rogers Communications Canada Inc. relativement à l'application d'un taux d'intérêt annuel de 42,58% sur les soldes acquittés après la date d'échéance de facturation à ses clients; 2. La défenderesse Rogers Communications Canada Inc. fait, entre autres, affaires sous les noms Câble Rogers, Rogers Cable, Câble TV Rogers, Rogers Cable TV, Chatr Saris-fil®, Chatr Wireless®, Chatr®, -2- Communications Câble Rogers, Rogers Cable Communications, Communications Futureway, Futureway Communications, Fido Sans-fil, Fido Wireless, Fido®, Groupe de compagnies Rogers, Rogers Group of companies, Internet Fido, Fido Internet, Internet Rogers, Rogers Internet, lnterréseautage
    [Show full text]
  • The State of Competition in Canada's Telecommunications
    RESEARCH PAPERS MAY 2016 THE STATE OF COMPETITION IN CANADA’S TELECOMMUNICATIONS INDUSTRY – 2016 By Martin Masse and Paul Beaudry The Montreal Economic Institute is an independent, non-partisan, not-for-profi t research and educational organization. Through its publications, media appearances and conferences, the MEI stimu- lates debate on public policies in Quebec and across Canada by pro- posing wealth-creating reforms based on market mechanisms. It does 910 Peel Street, Suite 600 not accept any government funding. Montreal (Quebec) H3C 2H8 Canada The opinions expressed in this study do not necessarily represent those of the Montreal Economic Institute or of the members of its Phone: 514-273-0969 board of directors. The publication of this study in no way implies Fax: 514-273-2581 that the Montreal Economic Institute or the members of its board of Website: www.iedm.org directors are in favour of or oppose the passage of any bill. The MEI’s members and donors support its overall research program. Among its members and donors are companies active in the tele- communications sector, whose fi nancial contribution corresponds to around 4.5% of the MEI’s total budget. These companies had no input into the process of preparing the fi nal text of this Research Paper, nor any control over its public dissemination. Reproduction is authorized for non-commercial educational purposes provided the source is mentioned. ©2016 Montreal Economic Institute ISBN 978-2-922687-65-1 Legal deposit: 2nd quarter 2016 Bibliothèque et Archives nationales du Québec
    [Show full text]
  • Claimant's Memorial on Merits and Damages
    Public Version INTERNATIONAL CENTRE FOR ICSID Case No. ARB/16/16 SETTLEMENT OF INVESTMENT DISPUTES BETWEEN GLOBAL TELECOM HOLDING S.A.E. Claimant and GOVERNMENT OF CANADA Respondent CLAIMANT’S MEMORIAL ON THE MERITS AND DAMAGES 29 September 2017 GIBSON, DUNN & CRUTCHER LLP Telephone House 2-4 Temple Avenue London EC4Y 0HB United Kingdom GIBSON, DUNN & CRUTCHER LLP 200 Park Avenue New York, NY 10166 United States of America Public Version TABLE OF CONTENTS I. Introduction ............................................................................................................................ 1 II. Executive Summary ............................................................................................................... 3 III. Canada’s Wireless Telecommunications Market And Framework For The 2008 AWS Auction................................................................................................................................. 17 A. Overview Of Canada’s Wireless Telecommunications Market Leading Up To The 2008 AWS Auction.............................................................................................. 17 1. Introduction to Wireless Telecommunications .................................................. 17 2. Canada’s Wireless Telecommunications Market At The Time Of The 2008 AWS Auction ............................................................................................ 20 B. The 2008 AWS Auction Framework And Its Key Conditions ................................... 23 1. The Terms Of The AWS Auction Consultation
    [Show full text]
  • Kent Thomson Cv
    KENT E. THOMSON Davies Ward Phillips & Vineberg LLP 155 Wellington Street West Toronto, ON M5X M5J 3J7 Telephone: (416) 863-5566 Fax: (416) 863-0871 E-mail: [email protected] EXPERIENCE Kent Thomson is a Fellow of The American College of Trial Lawyers and is the Head of the firm's Litigation Department in Toronto. He practises complex and "high stakes" litigation involving a wide range of areas including commercial disputes, securities cases, environmental matters, competition law, constitutional challenges, product liability and class actions. He has appeared on many occasions at all levels of court in Ontario, including the Superior Court of Justice, the Ontario Court of Appeal and the Supreme Court of Canada. He has also appeared on many occasions before Tribunals such as the Ontario Securities Commission, as well as in the Federal Court of Canada and before the courts of other Provinces, such as British Columbia, Manitoba, Nova Scotia, Quebec and Saskatchewan. Kent has acted as counsel in a number of leading cases, including cases decided by provincial Courts of Appeal, the Federal Court of Appeal and the Supreme Court of Canada in the fields of libel law, tax law, environmental law, constitutional law, arbitrations, oppression, athletic injuries, competition law, class actions and commercial disputes. Kent has also represented numerous parties in complex domestic and international arbitrations conducted pursuant to the applicable Rules of the American Arbitration Association, the I.C.C., C.P.R., the London Court of International Arbitration and UNCITRAL in a number of provinces in Canada, as well as throughout the United States and in Europe.
    [Show full text]
  • Fax, Scan & Email Services
    Need a fresh opinion on your Beverley Varcoe 905-727-3154 Over 50? investments? Highly Qualified to Handle Your Put up to $400 David B. Totten Real Estate Needs with Over 20 Senior Vice President, Wealth Advisor Back in Your Wallet. The Totten Wealth Advisory Group years of Award Winning service! 17310 Yonge Street, Suite 11 SeeSee Page Page 7 9 Newmarket, Ontario TM Tel: (905) 830-4468 www.davidtotten.ca Your Community Realty, Aurora From www.beverleyvarcoe.com BROKER, CRES, SRES If you are already a client of BMO Nesbitt Burns, please contact your Investment Advisor for more information. Market Value Appraiser ® “BMO (M-bar roundel symbol)” is a registered trade-mark of Bank of Montreal, used under licence. ® “Nesbitt Burns” is a registered trade-mark of BMO Nesbitt Burns Corporation Limited, used under licence. Aurora’s Independent Community Newspaper Vol. 9 No. 32 905-727-3300 auroran.com FREE Week of June 9, 2009 Board using “fear mongering” to end Wells School, he says By MARLA LEWIS Reports of deteriorating founda- ing, according a retired Aurora seismol- Special to The Auroran tions, asbestos and declining enrol- ogist. ment have added to the deadly diagno- At issue is a slew of reports com- Hundreds of parents, students, town sis. missioned by the school board claim- officials, business owners and residents But those reports are wrong, full of ing it could cost up to $10 million to fix are expected to march on a public mistakes and amount to fear monger- Please see page 15 meeting Monday at Dr. G.W.
    [Show full text]
  • Dec 1St Southridge Grade 12 Gift Card Fundraiser ORDER FORM 2014
    Due Date: Dec 1st Southridge Grade 12 Gift Card Fundraiser ORDER FORM 2014 NAME OF PURCHASER: _______________________ STUDENT NAME: ___________________________ ADDRESS: _______________________________ PHONE NUMBER: ______________________ STUDENT GRADE: ___________________________ DATE: _____________________ EMAIL: _____________________ PARENT NAME: ___________________________ MERCHANT Profit CERTIFICATES TOTAL MERCHANT Profit CERTIFICATES TOTAL Department Stores: Grocery Stores: Giant Tiger 3.0% x $25.00 Loblaws (Shop Easy, No Frills, 3.0% x $25.00 x $100.00 $ __________ Extra Foods, Superstore,Lucky x $50.00 Hudson's Bay (Hbc, 3.0% x $25.00 Dollar, Canadian Wholesale) x $100.00 Home Outfitters) x $50.00 x $250.00 $ __________ x $100.00 $ __________ Safeway 3.0% x $50.00 London Drugs 2.0% x $25.00 x $100.00 x $50.00 x $250.00 $ __________ x $100.00 $ __________ Stong's 6.0% x $50.00 Sears 3.0% x $25.00 x $100.00 **Reloadable** x $50.00 x $500.00 $ __________ x $100.00 $ __________ T&T Supermarkets 2.0% x $20.00 Walmart 1.0% x $25.00 (Osaka) x $50.00 $ __________ x $50.00 x $100.00 Specialty Stores: x $250.00 $ __________ Aeropostale 7.0% x $25.00 $ __________ Fuel: Aldo 7.0% x $25.00 $ __________ Chevron 2.0% x $25.00 $ __________ American Eagle 5.0% x $25.00 $ __________ Esso 2.0% x $25.00 Bath and Body Works 7.0% x $25.00 $ __________ **Reloadable** x $50.00 Best Buy 2.0% x $25.00 x $100.00 $ __________ x $50.00 Petro-Canada 2.0% x $25.00 x $100.00 $ __________ x $50.00 Canadian Tire 3.5% x $25.00 x $100.00 $ __________ x $50.00 Shell
    [Show full text]
  • Wireless Competition in Canada: an Assessment
    Volume 6•Issue 27•September 2013 WIRELESS COMPETITION IN CANADA: AN ASSESSMENT Jeffrey Church † Professor, Department of Economics and Director, Digital Economy Program, The School of Public Policy, University of Calgary Andrew Wilkins † Research Associate, Digital Economy Program, The School of Public Policy, University of Calgary SUMMARY If there’s one thing Canadians agree on, it’s that Canada’s wireless industry can and should be more competitive. The federal government is on side with the policy objective of having four carriers in every region and has responded with policies that provide commercial advantages to entrants. But, the rub is that there has not been a study that actually assesses the state of competition in wireless services in Canada, until now. Those in favour of policies that will promote and sustain entry point to Canada’s high average revenue per user and low wireless penetration rate (mobile connections per capita) as evidence that there is insufficient competition. The difficulty is that the facts are not consistent with this simplistic analysis. Measurements of wireless penetration are skewed toward countries that maintain the Calling Party Pays Protocol and favour pay-as-you-go plans, both of which encourage inflated user counts. Canada’s participation per capita on monthly plans and minutes of voice per capita are not outliers. Moreover, in terms of smartphone adoption and smartphone data usage, Canada is a global leader, contributing to high average revenue per user. Consistent with being world leaders in the rollout of high speed wireless networks, Canada lead its peer group in capital expenditures per subscriber in 2012: the competition of importance to Canadians is not just over price, but also over the quality of wireless networks.
    [Show full text]
  • Changing the Channel on Canadian Communications Regulation
    Institut C.D. HOWE Institute commentary NO. 451 Changing the Channel on Canadian Communications Regulation Canada's communications sector is set to undergo major policy reform. The federal government should replace ineffective Canadian content regulations with direct subsidies, introduce more legal and economic rigour in regulatory hearings, and eliminate ownership restrictions on communications companies and wireless spectrum. Benjamin Dachis and Daniel Schwanen The Institute’s Commitment to Quality About The C.D. Howe Institute publications undergo rigorous external review Authors by academics and independent experts drawn from the public and private sectors. The Institute’s peer review ensures the quality, integrity Benjamin Dachis and objectivity of its policy research. The Institute will not publish any is Associate Director, Research, study that, in its view, fails to meet these standards. at the C.D. Howe Institute. The Institute requires that its authors publicly disclose any actual or Daniel Schwanen potential conflicts of interest of which they are aware. is Vice President, Research, at the C.D. Howe Institute. In its mission to educate and foster debate on essential public policy issues, the C.D. Howe Institute provides nonpartisan policy advice to interested parties on a non-exclusive basis. The Institute will not endorse any political party, elected official, candidate for elected office, or interest group. As a registered Canadian charity, the C.D. Howe Institute as a matter of course accepts donations from individuals, private and public organizations, charitable foundations and others, by way of general and project support. The Institute will not accept any donation that stipulates a predetermined result or policy stance or otherwise inhibits its independence, or that of its staff and authors, in pursuing scholarly activities or disseminating research results.
    [Show full text]
  • Opening Canada's Doors to Foreign Investment in Telecommunications
    Response To: Opening Canada’s Doors to Foreign Investment in Telecommunications: Options for Reform Industry Canada Consultation Paper June 2010 Section 1. EXECUTIVE SUMMARY Mobilicity is pleased to be given an opportunity to respond to the recently published Industry Canada Consultation Paper on foreign investment in Telecommunications. We have reviewed the various foreign investment options suggested in the publication, and would like to specifically support Option 2 – The Telecommunications Policy Review Plan / Competition Policy Review Panel approach – specifically allowing smaller telecom players to be exempt from current restrictions related to foreign investment in telecommunications. In summary, we believe Option 2 will help facilitate fair competition among telecom companies and deliver the most consumer benefits of all the options under consideration. As will be discussed, telecommunications companies, in particular wireless operators, are capital intensive due to the large network and employee base required to offer service. Moreover, for new entrants and smaller operators, there is significant risk in their business plans because much of the capital outlay is required in advance of attracting subscribers, their large fixed cost base means that it is often many years before they can generate positive cash flow, and in the interim the incumbent competition can take predatory actions to impact smaller companies‟ viability. The result, therefore, is that while all telecommunications carriers need regular access to capital, new entrants in particular need access to “risk capital”, which is funding for earlier stage companies, many of which are not developed enough to be traded publicly. In Canada, there is ample domestic capital available for mature, relatively safe businesses such as telecommunication incumbents, but the amount of risk capital available is small relative to the requirements of new entrants and smaller operators.
    [Show full text]
  • Igniting Growth at a Glance Highlights for 2015
    Rogers Communications Inc. 2015 Annual Report Igniting growth At a glance highlights for 2015 Rogers Communications Inc. Wireless Rogers Communications (TSX: RCI; NYSE: RCI) Wireless is Canada’s largest provider of voice and data is a diversified Canadian communications and communications services. We provide these services to media company. We report our results of approximately 9.9 million customers under the Rogers, Fido, chatr and Mobilicity brands. We provide customers operations in the four segments of Wireless, with the best and latest wireless devices, applications and Cable, Business Solutions and Media. leading network speeds. Our far-reaching LTE network covers approximately 93% of all Canadians. Our strategic spectrum investments position us well to provide the network connectivity, speed and reliability our customers Operating revenue Adjusted operating profit have come to enjoy and expect. Wireless also provides (In billions of dollars) (In billions of dollars) seamless wireless roaming across the U.S. and more than 200 other countries and is the Canadian leader in the 2015 13.4 2015 5.0 deployment of machine-to-machine communications and Internet of Things applications. 2014 12.9 2014 5.0 2013 12.7 2013 5.0 Free cash flow Annualized dividend Operating revenue Adjusted operating profit (In billions of dollars) rate at year end ($) (In billions of dollars) (In billions of dollars) 2015 1.7 2015 $1.92 2015 7.7 2015 3.2 2014 1.4 2014 $1.83 2014 7.3 2014 3.2 2013 1.5 2013 $1.74 2013 7.3 2013 3.2 2015 Operating revenue 2015 Operating revenue $13.4 Billion $7.7 Billion Wireless 56% $13.4 Cable 26% $7.7 Network 90% Billion Billion Media 15% Business Solutions 3% Equipment 10% Cable and Business Solutions Media Cable is a leading Canadian cable services provider whose Media is Canada’s premier destination for category-leading service territory covers approximately 4.2 million homes sports entertainment, digital media, television and radio in Ontario, New Brunswick and Newfoundland representing broadcasting and publishing properties.
    [Show full text]