Canadian Telecommunications

1. Canadian Telecommunications Tran Cao Ricco Li Cam Melnyk Jason Qu

2. Industry and Companies

3. Telecommunications • Distance communication by cable, telephone, video, or internet • Involves the sending of information, through a medium, to a receiver

4. Demographics

5. Key Target Segments • Fixed Line Telephone • Wireless Telephone • Television • Internet

6. Fixed Line Telephone • Formerly defined as a telephone line with signals travelling through metal wire or optical fibres • Now includes broadband data and voice • Added due to decreased use of long-distance phone calls and increased use of wireless phones and VoIP

7. Fixed Line Telephone • Increased use of wireless and internet communication means decreased use of fixed line telecommunication • Fixed line market grew by 0.7% in 2007 to $18.9 billion with market volume remaining the same

8. Fixed Line Telephone

9. Fixed Line Telephone

10. Fixed Line Telephone

11. Fixed Line Telephone

12. Fixed and Mobile Comparison

13. Fixed and Mobile Comparison

14. Wireless Telephone • Transfer of communication without the use of cables or lines • Wireless carriers offer coverage to 98% of Canadian population • Wireless communications market grew by 8.5% in 2008 to $12.8 billion • Forecasted to reach $17 billion in 2013

15. Canadian Wireless Market Share

16. Projected Market Value

17. Projected Market Volume

18. Television • Telecommunications firms provide cable or satellite television via subscription or fee • Cable includes transmitting data over fiber optic or coaxial cables • Satellite includes transmitting data via orbiting satellites to customers’ receivers • Cable companies compete by offering video on demand and high speed internet access (VOIP)

19. Television • Telus recently entered the television market • Rogers and Bell already established in the market

20. Internet • A global system of interconnected computer networks available to several billion users worldwide • Has become increasingly popular in use to the point that most Canadians are users • Cross functionality on cell phones

21. Internet • Canadian internet access market grew by 8.1% in 2008 to $4.5 billion with 10.2 million subscribers • Growth expected to slow for the next five years

22. Internet

23. Internet

24. Internet

25. Internet

26. Technology Upgrades • More companies switching to digital from analog • Analog is a continuous signal with variations that follow the original signal • Digital consists of pulses and use binary code and less prone to “noise”

27. Technology Upgrades • Digital vs. Analog • (HDTV vs. SDTV)

28. Technology Upgrades • Code Division Multiple Access (CDMA) • Allows multiple users to share bandwidth over different frequencies • More efficient than Time Division Multiple Access and Frequency-Division Multiple Access

29. Technology Upgrades • Global System for Mobile Communications (GSM) • Used by 80% of mobile users globally • Enables users to use their phones in many parts of the world

30. Technology Upgrades • International Mobile Telecommunications-2000 (3G) • Allows simultaneous use of speech and data service • Higher data rates • Enormous costs of additional spectrum licensing

31. Technology Upgrades • 4G LTE - No specific definition yet • High network capacity • A nominal data rate of 1 Gbit/s • High quality of service for next generation multimedia support • Involves major changes in hardware • First commercial release expected in 2010

32. Government Regulations • New companies now allowed to enter the market • Industry Canada responsible for regional economic development, investment, and R&D. • Specifically, IC is responsible for communications policy and providing certification for communications equipment

33. Government Regulations • Canadian Radio-television and Telecommunications Commission regulates and oversees the terms and conditions associated with collaboration among telecommuni-cations carriers and service providers

34. Government Regulations • Competition Bureau Industry Canada maintains fair competition between telecommunication firms • Also responsible for monitoring illegal activities and misleading advertising

35. BRINGING YOUR WORLD TOGETHER INNOVATION IN COMMUNICATIONS, INFORMATION AND ENTERTAINMENT

36. Introduction ROGERS COMMUNICATIOS TSX:RCI.a/ RCI.b NYSE:RCI ROGERS CABLE ROGERS WIRELESS ROGERS MEDIA TSX: RCI.A, TSX: RCI.B, NYSE: RCI Canada’s one of the largest communication company

37. Rogers Communication Inc. Structure

38. Stock Performance(Public, TSE:RCI.B) 

39. Stock Chart for One Year

40. Stock Chart for Five Years

41. Stock Chart for 15 Years

42. Management

43. Edward Samuel “Ted” RogersFounder, former CEO, and President of RCI • Ted Rogers was born in May 27, 1933 • Ted Rogers’ father died when Rogers was five, but he was determined to carry on his father’s legacy. • In 1956, Rogers graduated from University of Toronto with the Bachelor of Arts Degree. • In 1962, he pioneered stereo broadcasting in FM with CHFI and also founded CFTR-AM in Toronto. • In 1967, Ted Rogers established Rogers Communications. • In 1970’s, Rogers Cable TV became Canada’s most innovative cable company. • Ted Rogers positioned Rogers as the segment leader through his business strategies. • From 1970’s to 2000’s, Rogers became Canada’s largest communication company. • Ted Rogers died of heart failure on December 2, 2008.

44. Alan D. HomChairman of RCI; CEO, and President of Rogers Telecommunications Ltd Designation • Chartered Accountant Education • B.Sc (First Class Honours) in Mathematics from University of Aberdeen, Scotland Career • Chairman of RCI • President, and CEO of Rogers Telecommunications Ltd • VP of Finance and CFO, Rogers Communications Inc. (September 1996 to March 2006) • President and COO, Rogers Telecommunications Limited (1990-1996)

45. Nadir MohamedPresident and CEO of RCI • 13 consecutive quarters double digit network revenue growth • 14 consecutive quarters of double digit operating profit growth • FCF turnaround from -$800M in 2001 to +$270M in 2004 • Led Rogers Wireless through the acquisition of Microcell Telecommunications in November 2004 • Member of the Board of Directors of Cinram International, Inc. • Member of the Board of Directors of Rogers Communications Inc. Designation • Chartered Accountant Education • Undergraduate degree from UBC Career • President and CEO, RCI (March 2009) • President and CEO, Rogers Wireless (July 2001 • President and COO, Rogers Wireless (August 2000) • Senior VP of Marketing and Sales, Telus Communications Inc. (February 1999 and August 2000) • President and COO, BC Tel Mobility (August 1997 and January 1999)

46. Rogers Wireless • Wireless Business • Largest Canadian wireless communications service provider • Serving about 37% retail voice and data subscribers • Only national carrier operating on the world FSM • Deployed UMTS • Wireless Products and Services • Provides wireless voice, data, and messaging services • Provides high-speed wireless data services

47. Rogers Wireless • Wireless Distribution • Has 3500 dealers and retail locations across Canada • Has nationwide distribution network • Wireless Networks • Is a facilities-based carrier

48. Rogers Wireless • Wireless Revenues • Network Revenues • Postpaid voice and data • Prepaid voice and data • One-way messaging • Equipment Sales • Wireless Operating Expenses • Cost of equipment sales • Sales and marketing expenses • Operating, general and administrative

49. Summarized Wireless Quarterly Financial Result

50. Rogers Wireless • Recent Wireless Projects and News • Launched the next generation Apple iPhone 3G S in Canada which offers speeds up to two times faster • Introducing Internet-ready netbooks with HSPA • Launched the BlackBerry Curve 8520 smartphone • Bell Canada and Telus Corp will start carrying Apple’s (AAPL) iPhone in November