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Rogers Communications

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Rogers Communications Inc.
Company typePublic (TSX: RCI.A, TSX: RCI.B, NYSE: RCI)
IndustryCommunications Services
FoundedToronto, Ontario (1920)
HeadquartersRogers Building, Toronto, Ontario
Key people
Alan Horn – Chairman
Nadir Mohamed – CEO
ProductsCable TV, Wireless, Telecommunications,
Publishing, Broadcasting, Rogers Blue Jays Baseball Partnership
Revenue$11.35 billion CAN
$4.06 billion CAN
$1.26 billion CAN
Number of employees
29,200 (2008)
Websitewww.rogers.com

Rogers Communications Inc. (TSX: RCI.A, TSX: RCI.B, NYSE: RCI) is one of Canada's largest communications companies, particularly in the field of wireless communications and cable television, with additional telecommunications and mass media assets.

The company considers its history to date back to the Rogers Vacuum Tube Company founded by Edward S. Rogers, Sr., which started Toronto radio station CFRB (RB stands for "Rogers Batteryless"), but was later acquired by outside interests. The current company's earliest direct predecessors were started by his son, Edward S. "Ted" Rogers: Rogers Radio Broadcasting Ltd., which acquired CHFI-FM in 1960, and Aldred-Rogers Broadcasting, a partnership with Joel Aldred which helped launch CFTO-TV in 1961. Rogers later bought out Aldred and started the current cable and wireless operations.

Rogers Communications's primary competitor is Bell Canada, which has a similar portfolio of wireless, television, and telephone services, particularly in eastern and central Canada. The company also competes nationally with Telus for wireless services, Shaw Direct for television service, and various other media companies in the broadcasting industry.

On March 29th, 2009 it was announced that Nadir Mohamed would succeed Ted Rogers as the new President and Chief Executive Officer of the company.

History

The company began with Edward S. Rogers, Sr., who had envisioned radio as an electric pipeline, reaching into people's homes to entertain, inform and educate.

In 1925, Rogers, Sr. invented the world's first alternating current (AC) radio tube, which then enabled radios to be powered by ordinary household electric current. This was a dramatic breakthrough in technology and it became the key factor in popularizing radio reception. After this invention radios became far more commonplace.

In 1931, Rogers, Sr. was awarded an experimental television licence in Canada. He was working on radar when on May 6, 1939 he died at the young age of 38. He left a widow, Velma, and a five-year-old son, Edward. His business interests were sold. However, his son Edward (Ted Rogers) was determined to carry on his father's legacy.

1960s

While he was an articling student with Tory, Tory, DesLauriers & Binnington, Ted Rogers started Rogers Radio Broadcasting Limited, which acquired the nation's pioneer FM station, CHFI-FM. In 1962, he pioneered stereo broadcasting in FM with CHFI and also founded CFTR in Toronto.[2]

By making available FM radios to boost FM penetration, which was only at 3% at the time, Ted Rogers was able to make more Canadians aware of FM transmitters. CHFI-FM quickly became one of Canada's most listened to FM radio stations and also became the most popular and profitable FM radio station in Canada. Rogers’ interests in radio led him to cable television in the mid-1960s. He wanted Canada's fledgling cable operators to carry CHFI on a spare cable channel and the more he studied the cable world, the more he became attracted to the potential for programming choices on cable television. He entered the cable business in 1967, and was awarded television licences for areas in and around Toronto, Brampton and Leamington.

1970s

In the 1970s, Rogers Cable Television had become Canada's most innovative cable company. In 1974, for example, it became the first cable company to expand past 12 channels, and the cable company specialized in adding more programming choice, in particular with multi-cultural television. Through a reverse-takeover in 1979, Ted Rogers’ company, Rogers Cable TV Limited, acquired control of Canadian Cablesystems Limited. In 1980, Rogers purchased Premier Communications Limited, which almost doubled Rogers’ cable subscribers and made Rogers the largest cable television company in Canada.

1980s

As a founding shareholder of Rogers Cantel Inc., which commenced service in 1985, Rogers entered the mobile phone market. The company operated a national cellular telephone network in Canada in competition with the established telephone companies. Rogers Cantel Mobile Communications Inc., which is now called Rogers Wireless, is now a public company 51% of which is owned by Rogers Communications.

Between 1979 and 1982, Rogers Communications acquired and built a number of cable television systems in the United States. In March 1989, Rogers Communications completed the sale of its US cable television interests for CDN $1.581 billion.

This led to Rogers Communications Inc. acquiring 40% of Unitel Communications, formerly CNCP Telecommunications, in September 1989. Unitel was granted permission by the Canadian Radio-television and Telecommunications Commission in June 1992 to compete with the Canadian telephone monopolies in the long-distance market. In January 1993, 20% of Unitel Communications was sold to AT&T. As a result of this transaction, Rogers Communications Inc.'s interest in Unitel was reduced to 32%. In September 1995, Unitel Communications reached an agreement in principle with AT&T and certain of its bankers to restructure Unitel. At the close of this transaction, Rogers Communication no longer had an equity investment in Unitel.

1990s

On March 31, 1994, Rogers Communications Inc. successfully completed its offer for the shares of Maclean-Hunter and on December 19, 1994, the CRTC approved the transaction. The publishing assets of Maclean-Hunter were subsequently combined with its existing radio and television operations to form Rogers Media Inc.

2000s

Rogers Communications Inc. acquired the Toronto Blue Jays Baseball Club in 2000 and several years later, in 2004, acquired Skydome which is the Blue Jays home venue and largest covered indoor entertainment complex in Canada. The complex was renamed Rogers Centre in February 2005. Also in 2000, Rogers bought the Arena Football League team, the New England Sea Wolves and after the 2000 season, Rogers moved them to Toronto and renamed the team the Toronto Phantoms. Due to lack of interest and poor ticket sales, the team ceased operations in 2002.

In 2000, Rogers acquired Cable Atlantic[3] from Newfoundland businessman Danny Williams. The deal, worth $151.8 million, brought Rogers approximately 75,000 subscribers. With the purchase of Cable Atlantic Rogers scrapped its plan to buy Vidéotron which was later purchased by Quebecor.

In July 2001, Rogers Media acquired CTV Sportsnet, and renamed Rogers Sportsnet that November. The FAN 590 sports radio station joined Rogers Media in August 2001 along with 14 Northern Ontario radio stations. [4]

Rogers Cable launched Digital Television into Canadian homes in September 2001. Rogers On Demand was launched as a home video library over cable in February 2002, and in November 2003, Rogers Cable made personal video recorders (PVRs) available to its subscribers.

In summer 2004, Rogers partnered with Yahoo! to create Rogers Yahoo!, which offers Yahoo! premium features to Rogers broadband internet customers.

In fall 2004, several strategic transactions were executed that significantly increased Rogers exposure to the potential of the Canadian wireless market. Rogers acquired the 34% of Rogers Wireless owned by AT&T Wireless Services Inc, at an attractive price. Soon thereafter, Rogers Wireless acquired Microcell Telecommunications Inc., along with its popular Fido brand, which created Canada's largest wireless operator and only GSM provider. In December, Rogers Communications repurchased the shares of Rogers Wireless that were publicly held and proceeded to take the company private which significantly enhanced the company's operating and financial flexibility.

Coinciding with the twentieth anniversary of Rogers' launch of wireless services, on July 1, 2005, Rogers Home Phone voice-over-cable local telephony service was introduced in the Greater Toronto Area and also successfully completed the acquisition of Call-Net Enterprises Inc. (now Rogers Telecom Holdings Inc.), a national provider of voice and data communications services.

In 2007, Rogers entered a tentative deal to purchase the A-Channel stations, CKX-TV, Access, Canadian Learning Television and SexTV: The Channel from CHUM Limited, as part of the latter company's pending takeover by CTVglobemedia. This transaction was contingent on Canadian Radio-television and Telecommunications Commission (CRTC) approval of CTVglobemedia's takeover of CHUM. However, on June 8, 2007, the CRTC approved the CTV transaction conditional on CTV divesting itself of Citytv rather than A-Channel, effectively voiding the deal. On June 12, it was announced that Rogers had made a new offer of $375 million for the Citytv stations. The transaction was approved on September 28, 2007, the same date when "Rogers Park" in Brampton, Ontario was officially opened.

On June 28, 2007, Rogers further offered to sell the two religious-licensed OMNI stations in Winnipeg and Vancouver as part of the Citytv deal, although the company stated that it intended to retain the multilingual-licensed OMNI stations. [1] On July 7, Rogers also announced a takeover offer for Vancouver's multicultural station CHNM. The transaction was approved on March 31, 2008. In September 2007, Rogers has also applied to the CRTC to acquire 20 per cent of CablePulse 24, a local news channel in Toronto which was previously paired with Citytv (both stations were previously owned by CHUM Limited) but was retained by CTVglobemedia in the June 8 licence approval. However in early December, CTV withdrew the application and announced that Rogers Media and CTVgm had come to a deal in which Rogers waived their 20 per cent stake.

On February 13, 2008, Rogers announced a takeover offer for Aurora Cable, a cable service provider in York Region, Ontario. The sale was finalized on June 12, 2008.

On December 2, 2008, Edward S. Rogers died of heart failure.[5]

Corporate governance

Following the death of Ted Rogers, control of Rogers Communications passed to the Rogers Control Trust, a trust for which a subsidiary of Scotiabank serves as trustee. The trust exercises control of the company for the benefit of current and future generations of the Rogers family. Ted's son Edward Rogers III and daughter Melinda Rogers serve, respectively, as chair and vice-chair of the trust.[6][7]

Current members of the board of directors of Rogers Communications are:

  • Peter Godsoe, O.C – Lead Director
  • Ronald Besse – President, Besseco Holdings Inc.
  • Charles William David Birchall – Vice Chairman, Barrick Gold Corporation
  • John H. Clappison, FCA – Company Director
  • Alan D. Horn, C.A. – Chairman & Acting CEO, Rogers Communications Inc. and President/CEO Rogers Telecommunications Limited
  • Thomas I. Hull – Chairman and Chief Executive Officer, The Hull Group Inc.
  • Philip B. Lind, C.M. – Vice Chairman, Rogers Communications Inc.
  • Nadir Mohamed, CA – President and Chief Operating Officer, Communications Group, Rogers Communications Inc.
  • The Hon. David Peterson, P.C., Q.C. – Senior Partner, Cassels Brock & Blackwell
  • Edward S. Rogers – President, Rogers Cable Inc.
  • Loretta Rogers – Company Director
  • Melinda M. Rogers – Senior Vice President, Strategy and Development, Rogers Communications Inc.
  • William T. Schleyer – President and Chief Executive Officer, Adelphia Communications Corp.
  • John A. Tory, Q.C. – Director, The Woodbridge Company Limited
  • J. Christopher C. Wansbrough – Chairman, Rogers Telecommunications Limited
  • Colin Watson – Company Director

Rogers Communications Inc. Senior Corporate Officers:

  • Alan D. Horn, C.A. – Chairman and Acting Chief Executive Officer
  • Philip B. Lind, C.M. – Vice Chairman
  • William W. Linton, C.A. – Senior Vice President, Finance and Chief Financial Officer Rogers Communications Inc.
  • Nadir Mohamed, CA – President and Chief Operating Officer, Communications Group, Rogers Communications Inc.
  • Ronan D. McGrath, CA – President, Rogers Shared Operations and Chief Information Officer
  • Anthony P. Viner – President and CEO, Rogers Media Inc.
  • M. Lorraine Daly – Vice President, Treasurer
  • Kenneth G. Engelhart – Vice President, Regulatory
  • John G. Gossling, CA – Vice President, Financial Operations
  • Jan L. Innes – Vice President, Communications
  • Bruce Mann, CPA – Vice President, Investor Relations
  • Graeme H. McPhail – Vice President, Associate General Counsel
  • David P. Miller – Senior Vice President, General Counsel and Secretary
  • Kevin P. Pennington – Senior Vice President, Chief Human Resources Officer
  • Melinda M. Rogers – Senior Vice President, Strategy and Development
  • David J. Watt – Vice President, Business Economics

Finance

Rogers Communications Inc. is traded on the TSX under RCI and on the NYSE under RCI.

In the Third Quarter Report, Rogers consolidated Revenue Grew 16% to $2.5 Billion and the Consolidated Operating Profit (as adjusted) Increased by 20% to $898 Million;

Wireless Postpaid ARPU Grows 8% Year-Over-Year, Postpaid Churn Falls to 1.15% and Strong Postpaid Subscriber Growth Continues, while Solid Subscriber Net Additions Continue for Digital Cable, Rogers Hi-Speed Internet and Cable Telephony. The annual dividend increased from C$0.16 to C$0.50 per Share.[8]

Revenue for Rogers Communications was $7.48 billion CAD in 2006 with an operating income of $2.1 billion CAN.[9]

Assets and divisions

The Rogers Building is located in Toronto, Ontario
Main article: List of assets owned by Rogers Communications

Rogers Communications Inc. is a diversified Canadian communications and media company engaged in three primary lines of business.

Rogers Cable and Telecom is the largest cable television provider in Canada offering cable television, high-speed Internet access, residential telephony services, and video retailing. A sub division is Rogers Business Solutions division is a national provider of voice communications services, data networking, and broadband Internet connectivity to small, medium and large businesses. Rogers Wireless is Canada's largest voice and data communications services provider. Rogers Media is Canada's premier collection of category-leading media assets with businesses in radio and television broadcasting, televised shopping, publishing and sports entertainment.

Rogers Cable and Telecom

Rogers Cable Inc.

Rogers Cable Inc. is Canada's largest cable television service provider with approximately 2.3 million customers in southern Ontario (90% of customers), New Brunswick and Newfoundland and Labrador. Its growing digital cable service provides access to technologies such as high definition television, video on demand, interactive television and enhanced television. Rogers also provides broadband Internet access (Rogers Hi-Speed Internet), co-marketed with Yahoo!. Rogers has been subject to considerable scrutiny and backlash over its duopolistic business practices and Internet Protocol packet shaping for peer to peer content. Rogers Retail is the corporate retailer for Rogers Communications Inc. and operates retail locations under the Rogers Video, Rogers Plus and Fido brand names. Customers of Rogers Cable also get access to Rogers TV and TV Rogers, a volunteer based local television channel. This unit was created in 1967.

As well, through Rogers Cable Inc., Rogers owns a majority interest (41.4%) in CPAC.

Rogers Telecom

Rogers Telecom (formerly Call-Net Enterprises which did business under the Sprint Canada brand) is a major competitive telephone carrier throughout Canada, best known for its local and long distance consumer and business services and solutions. Since acquiring Call-Net, Rogers has also entered into the lucrative residential phone business under the Rogers Home Phone brand, to challenge Bell Canada, using both traditional and VoIP technologies. As of 2007, Rogers Telecom has been rolled into the Rogers Cable business unit.

Rogers Wireless

Rogers Wireless is Canada's largest wireless communications services provider, under the Rogers and Fido brand names, with 7.1 million voice and data subscribers, and now the sole Canadian operator of a GSM-based network, as well as the sole carrier for the Apple iPhone 3G in Canada (Fido, being a brand of Rogers is a carrier of the iPhone 3G as well). The unit was previously known as Cantel, Cantel AT&T, and Rogers AT&T Wireless (U.S. firm AT&T Wireless was a large shareholder for a time).

Rogers Media

Rogers Media owns Canada's largest publishing company, Rogers Publishing Limited, which has more than 70 consumer and business publications, 51 radio stations, television broadcasting with OMNI, Citytv and the Sportsnet network, The Shopping Channel which is Canada's home shopping service. Rogers Media's headquarters are located at the CFMT Building in Toronto.

Publishing

Rogers Publishing Limited publishes more than 70 consumer magazines and trade and professional publications, digital properties and directories in Canada, including Maclean's, Canada's weekly newsmagazine; its French-language equivalent, L'actualité; Chatelaine; Flare; and a variety of other magazines and their companion web sites. The publishing arm was once part of the Maclean-Hunter Publishing empire.

Broadcasting

A Rogers Cable office in Moncton is also the broadcast studios for CKNI-FM a Rogers owned radio station

Rogers Broadcasting operates 51 Canadian radio stations, (36 FM and 10 AM radio stations) including three FM stations launched in the Maritimes in October 2005; Omni Television, which operates two multicultural television stations in Ontario (OMNI.1 and OMNI.2) as well as one in Vancouver (Channel M) acquired in April 2008; Citytv acquired in 2007; which operates 5 stations in Toronto, Winnipeg, Calgary, Edmonton and Vancouver; Rogers Sportsnet, a specialty sports television service licensed to provide regional sports programming across Canada; The Shopping Channel, Canada's only nationally televised shopping service and the The Biography Channel Canada, acquired outright in August 2006 when Rogers bought out the 40% stake owned by Calgary's Shaw Communications and A&E Television Networks' 20% ownership.

Rogers also is a partner in OLN, TVtropolis, Viewers Choice and is a two-thirds owner of G4 Canada with Comcast.

Some of the better known radio outlets are CHFI Toronto, CJCL Toronto (The FAN 590), CFTR Toronto (680 News), and various stations operating under the Jack FM brand. In summer 2006, Rogers acquired five stations from OK Radio in Alberta and, with regulatory approval, will be operating in Edmonton, Fort McMurray and Grande Prairie. Existing clusters of stations are in Vancouver-Victoria-Whistler, Calgary-Lethbridge, Winnipeg, Toronto, Ottawa, Kitchener and Halifax-Moncton-Saint John, NB.

In 2007, Rogers entered a tentative deal to purchase the A-Channel stations, CKX-TV, Access, Canadian Learning Television and SexTV: The Channel from CHUM Limited, as part of the latter company's takeover by CTVglobemedia. This transaction was contingent on Canadian Radio-television and Telecommunications Commission (CRTC) approval of CTVglobemedia's takeover of CHUM. However, on June 8, 2007, the CRTC approved the CTV transaction conditional on CTV divesting itself of Citytv rather than A-Channel, effectively voiding the deal. On June 12, it was announced that Rogers had made a new offer of $375 million for the Citytv stations. The transaction was approved on September 28, 2007, the same date when "Rogers Park" in Brampton, Ontario was officially opened.

On June 28, 2007, Rogers further offered to sell the two religious-licensed OMNI stations in Winnipeg and Vancouver as part of the Citytv deal, although the company stated that it intended to retain the multilingual-licensed OMNI stations.[10] On July 7, Rogers also announced a takeover offer for Vancouver's multicultural station CHNM. In September 2007, Rogers has also applied to the CRTC to acquire 20 per cent of CablePulse 24, a local news channel in Toronto which was previously paired with Citytv (both stations were previously owned by CHUM Limited) but was retained by CTVglobemedia in the June 8 licence approval.[11] Neither CTVglobemedia nor Rogers has, to date, announced whether this application will change future plans for the station.

Sports

In addition to its ownership of Sportsnet, acquired from CTV, Rogers Media operates the Toronto Blue Jays baseball team through Rogers Blue Jays Baseball Partnership and the Rogers Centre (previously known as SkyDome). Through Rogers Sportsnet, Rogers Media also holds a 50% ownership in Dome Productions, a mobile production and distribution joint venture that is a leader in high-definition television production and broadcasting in Canada.

Call centres

Rogers uses all Canadian based call centres. These centres are operated by the Rogers Shared Operations (RSO) division in:

Rogers also contracts out their customer service and other operations to numerous local agents:

  • Aditya Birla Minacs
  • Atelka
  • Atria
  • Gemma Communications
  • ICT Group, Inc.
  • Minacs
  • NuComm International
  • Online Support (OLS)
  • Resolve Corporation (Formally known as Watts Group)
  • SITEL (Formerly known as ClientLogic)
  • SMT
  • Teleperformance
  • TRG (Formerly Telespectrum)
  • Webhelp

References

  1. ^ "Company Profile for Rogers Communication Inc (RCI)". Retrieved 2008-10-09.
  2. ^ Virtual Museum, Rogers.com
  3. ^ Rogers buys Cable Atlantic, CBC News, November 10, 2000
  4. ^ History of Rogers, Rogers.com
  5. ^ Communications giant Ted Rogers dies at 75
  6. ^ CRTC ownership chart for Rogers Communications
  7. ^ Voting Control of Rogers Group of Companies to be Held in Trust for Family, Rogers Communications press release, December 22, 2008
  8. ^ Rogers Reports Strong Third Quarter 2007 Financial and Operating Results, NewsWire.ca
  9. ^ Financial Reports, Rogers
  10. ^ Robertson, Grant. Rogers offers to sell two stations, The Globe and Mail, June 28, 2007
  11. ^ CRTC application 2007-12

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