canadian telecommunications industry - sfu.capoitras/417_cdntelco_09-3.ppt · ppt file · web...
TRANSCRIPT
Canadian Canadian telecommunications telecommunications
industryindustry
Presented by :Gary Li
Vincent MinichielloAmy Ng
Dickson Tan
Agenda
• Industry Analysis• Manitoba Telecom Services (TSE:MBT)
• Telus Corporation (TSE:T)• Rogers Communications Inc. (TSE:RCI.B)
What is telecommunication
dfttttetttetteltelecommunicationCommunication over a distance by
cable, telegraph, telephone, or broadcasting.
-Oxford Dictionary
Sender Medium Receiver
Key TermsAverage Revenue Per User (ARPU)•Total Revenue divided by # of subscribersCompound Annual Growth Rate (CAGR)•The year-over-year growth rate of an investment over a specified period of time.
History
Smoke signals
and drums
1839 - The first telegraph bySir Charles Wheatstone and Sir William
Fothergill Cooke
1876 - The first conventional
telephone developed by Alexander Bell
1897 - The first radio station
1928 - Introduction of the television
1969 - The ARPANET was
developed
1973 - The first cellphone
InternetCompetitive Landscape
•Buyers have low switching costs
•Strong supplier power
•Potential entrants attracted to market
growth
WirelessCompetitive Landscape
•National governments are the sole
suppliers of bandwidth
•Large number of buyers
•Switching costs vary
WirelineCompetitive Landscape
•Slow growth
•High threat of substitutes
•Buyer power is limited
•Low switching costs
Technology
•AnalogVariable signal continuous in both time and amplitudeAffected by “noise”, which can cause data loss•DigitalUses discrete values represented by binary numbersLess likely to have data loss
TechnologySpectrum Licensing•Is a radio frequency that is subject to usage limitations•Regulated by the government•Extremely expensive (up to $1billion)
TechnologyCode Division Multiple Access (CDMA)•Channel access method utilized by various radio communication technologies
Global System for Mobile Communications (GSM)•Most popular standard for mobile phones in the world. •Pioneered SMS
TechnologyInternational Mobile Telecommunications-2000 (3G)•Allows simultaneous use of speech and data service•Higher data rates•Enormous costs of additional spectrum lisceningHigh Speed Download Packet Access (HSDPA)•Enhanced 3G network•Higher data transfer speeds•Began selling HSDPA USB modems
Technology4G LTE - No specific definition yet•High network capacity•A nominal data rate of 100 Mbit/s•High quality of service for next generation multimedia support•Involves major changes in hardware5G - No specific definition yet• Introduced in Korea in 2012•Unknown speed and service •Claim to be super high-speed
Regulatory EnvironmentIndustry Canada
Canadian Radio-television and Telecommunications
CommissionCompetition Bureau
Industry Canada•Responsible for communications policy and spectrum frequency allocation. •Responsibility for providing certification and type-approval of telecommunications equipment in Canada.
•Regulates and supervises broadcasting and telecommunications in Canada. •Oversees and enforces decisions relating to the terms, conditions and tariffs associated with the interconnection of facilities among telecommunications carriers and service providers.
•Acts as a “watchdog” for conspiracies to fix prices and price maintenance. •Authority over the approval of mergers.•Deal cases involved with misleading advertising and exclusive dealing.
Rogers Agenda
• HistoryBusiness Segment• Rogers Wireless• Rogers Cable• Rogers MediaManagementPerformanceRecommendation
HistoryE.S. Rogers Sr.
1913- Ted Rogers was able to pick up a report of a ship wreck in Ireland while using
his telegraph set
1921- He is the first amateur wireless
operator in Canada to send a signal across
the ocean.
1925- The Alternating Current Tube system
schematics, hand-drawn by Ted Rogers Sr. for his
Patent application.
1927-CFRB stands as the first
all-electric radio station inthe world, its transmitters
beingpowered by Rogers A/C
Tubes.
The call-letters represent Canada's
First Rogers Batteryless.
1928-Rogers Batteryless Radios
merged with Majestic Electric Radios, a
leading radio manufacturer in
Chicago in 1928.
1939-Ted Rogers Sr. passed away
suddenly in 1939. The employees at Rogers-
Majestic and CFRB were touched deeply
by this profound tragedy.
HISTORY
HistoryE.S. “Ted” rogers
1960- While in law school, Ted Rogers buys
CHFI, a struggling FM radio station
and builds it into a success.
1962- CHFI-AM is launched later
renamed CFTR, signifying
‘Canada’s First Ted Rogers’, now 680
News.
1967- Ted Rogers founds Rogers
Cable TV, acquires Bramalea
Telecable and formally enters into the cable
business with 300 subscribers.
1969- Rogers Community Television premieres.
1973- Rogers Cable TV launches ‘cable tv
converters’ in Toronto, providing its subscribers with more
channels.
1979- Rogers becomes a public company when it
acquires Canadian Cablesystems
through a reverse takeover and
becomes biggest cable company in
Canada
HISTORY
HistoryE.S. “Ted” rogers
1980- Rogers acquires Premier
Cablevision of Vancouver.
1981- Rogers starts to operate in U.S.
cable market. Wins franchises in Orange County, California, Minneapolis, and
Portland and purchases the cable
system in San Antonio
1985- Cantel (predecessor of
Rogers Wireless) launches cellular service on July 1.
1986- Rogers Communications Inc.
is formed as the parent company to
his operating divisions.
Rogers Broadcasting acquires CFMT -
Toronto.
1988- Rogers Video is created and later
becomes the largest Canadian-owned chain of
rental video stores.
Rogers Broadcasting acquires the Canadian
Home Shopping Network, later renamed The Shopping Channel.
1989- Rogers sells U.S. cable assets for over $1 billion profit and invests profits in
wireless sector.
HISTORY
HistoryE.S. “Ted” rogers
1991- Rogers Cablesystems and
partners launch Viewer’s Choice
Canada, a pay-per-view cable
television company.
1993- Rogers Broadcasting station CFTR changes its
format and becomes 680News, the first all-
news station in Canada.
1994- Rogers launches $3.1 billion hostile bid for Maclean Hunter, at
the time the largest takeover in Canadian
history – Rogers Media is created.
1995- Rogers pulls out of Unitel.
Rogers becomes the first cable company in North
America to launch commercial high-speed Internet service when it
launches service in Newmarket, Ontario.
1997- Rogers Cantel AT&T launches prepaid Pay-As-You-Go cellular
service.
1999- Rogers Cablesystems launches Digital Cable Television service – offering more
channels and enhanced services to
subscribers.
Microsoft, AT&T and British Telecom invest
in Rogers
HISTORY
HistoryE.S. “Ted” rogers
2000- Rogers acquires the
Toronto Blue Jays major league
baseball team.
2001- Rogers Media acquires control of
Sportsnet from CTV. Renamed Rogers
Sportsnet
2002- Rogers launches GSM wireless network
Rogers Cable launches Video On Demand.
CFMT-TV rebranded as Omni Television.
2003- Rogers Cable launches Personal Video Recorders
(PVRs)
2004- Rogers Communications Inc.
acquires the SkyDome stadium in Toronto.
Rogers buys back AT&T's interest in Rogers
Wireless
2005- Rogers Cable acquires Call-Net and offers local telephone
service.
2006- Rogers Cable launches the Rogers
Yahoo!
Rogers Media launches “Hello!”
magazine
HISTORY
HistoryE.S. “Ted” rogers
2007- Rogers acquires five Citytv television stations
Rogers achieves investment grade status for its debt.
2008- Rogers Wireless launches the Apple iPhone.
The Buffalo Bills NFL Football Team, in partnership with Rogers Communications, kick off their “Toronto Series” with a pre-season game at Rogers Centre against the Pittsburgh Steelers. Bills win, 24 to 21.
Ted Rogers passes away at his home, from congestive heart failure.
Alan Horn becomes Acting CEO of Rogers Communications Inc., as well as retaining Chairman
duties.
2009- Nadir Mohamed becomes President &
CEO of Rogers Communications Inc.
HISTORY
Business Segments
Rogers Communicatio
ns
Rogers Wireless Rogers Cable Rogers Media
BUSINESS SEGMENTS
Rogers Wireless
•Canada’s largest wireless provider8.2 M wireless voice & data subs37% national market share at 2Q09Most reliable & fastest networksUnmatched distribution channel with two strong brands in marketFirst national GSM/HSPA carrier brings roaming & device advantage•First Canadian carrier to carry the Apple iPhone 3G and 3GS in CanadaBlackBerry Bold and the BlackBerry CurveFirst Google Android-powered devices in Canada.HSPA+ Rocket Stick
BUSINESS SEGMENTS
Rogers WirelessOperating Revenue:•Post paid (voice and data)Prepaid (voice and data)One way messagingEquipment salesNetwork revenue and Data Revenue
Operating Expenses:•Cost of equipment salesSales and marketing expensesOperating, general and administrative expenses
Profit:
Rogers Cable
•Canada largest cable television service providerHigh-Speed Internet Digital TVRogers on DemandHome Phone
BUSINESS SEGMENTS
Rogers CableOperating Revenue:•Analog cable serviceDigital cable service revenueInternetRogers Home PhoneRBDRogers Retail
Operating Expenses:•Sales and marketing expensesOperating, general and administrative expensesCost of Rogers Retail sales
Profit:
Rogers MEdia
Portfolio of category-leading media assets Radio and television
broadcastingPublishingSports entertainmentOnline properties
BUSINESS SEGMENTS
Rogers MediaOperating Revenue:•Advertising revenuesCirculation revenuesSubscription revenuesRetail product revenuesSales of ticket, receipts, of league revenue sharing and concession sales associated with Rogers Sports Entertainment
Operating Expenses:•Cost of salesOperating, general and administrative expenses
Profit:
History
1990- TELUS Corporation established, following the
reorganization of the Alberta Government
Telephones Commission, becoming the parent
company of AGT. The sale of TELUS shares marked
the largest initial public offering in Canadian
history up to this time, raising $896 million.
1990- Edmonton Telephones Corporation (ED TEL) established as
an arms-length subsidiary company of the City of
Edmonton.
1995- Consumer Internet service is
launched.
1995- TELUS acquired ED TEL from the City of
Edmonton for $467 million.
1991- The Province of Alberta sold its
remaining ownership interest in TELUS for
$870 million.
1996- The TELUS "master brand"
introduced, bringing products and
companies under one unified identity.
The ED TEL and AGT brands are
retired.
HISTORY
History
1998- TELUS Corporation and BC TELECOM
announce a proposed merger. This is the first step toward creating a
leading national telecommunications
company.
2000- TELUS acquires wireless
company Clearnet.
2005- TELUS integrates its wireline
and wireless segments of the
business – TELUS Communications and TELUS Mobility – into
one operating structure.
2004- TELUS acquires
ADCOM, Inc.
2001- TELUS acquires Arqana Technologies Inc, Daedalian Solutions Inc,
PSINet's Canadian operations and facilities, QuebecTel, Columbus
Group, Williams Communication Canada, Northwest Digital (NWD)
Systems Inc.
2006- TELUS acquires Assurent
Secure Technologies.TELU
S completes the restructuring of
TELUS Communications
and TELUS Mobility.
2008- TELUS completes
acquisition of Emergis.
HISTORY
History
HISTORY
1997 - Became a public traded
company on the TSX
1999 - Formed Strategic alliance with
Bell
2004 - Ended strategic alliance with
Bell in Western Canada•2004 -
Acquired Allstream and become the 3rd
largest telecom provider in Canada.
2000 - Initiated broadband service in
Manitoba
2004 - Acquired Allstream and
become the 3rd largest telecom provider in
Canada
History
HISTORY
2004 –Became strategic alliance with BT: broaden IP based
technology service
2006 – Spent $320 million share repurchase
2005 - Pierre Blouin became CEO (Former
BCE executive)
2005 - Acquired Delphi Solutions
Corp.
2008 - Manitoba’s Top Employers by
Winnipeg Free Press
2006 - Introduced high definition TV
service