Canadian
telecommunications
industry
Presented by :
Gary Li
Vincent Minichiello
Amy Ng
Dickson Tan
Agenda
•
Industry Analysis
•
Manitoba Telecom Services
(TSE:MBT)
•
Telus Corporation (TSE:T)
•
Rogers Communications Inc.
(TSE:RCI.B)
What is telecommunication
dfttttetttetteltelecommunicatio
n
Communication over a distance by cable,
telegraph, telephone, or broadcasting.
-Oxford Dictionary
Sender
Medium
Receiver
Key Terms
Average Revenue Per User (ARPU)
•Total Revenue divided by # of
subscribers
Compound Annual Growth Rate (CAGR)
•The year-over-year growth rate of an
investment over a specified period of time.
History
Smoke
signals
and drums
1876 - The first
conventional
telephone
developed by
Alexander Bell
1839 - The first
telegraph bySir
Charles
Wheatstone and
Sir William
Fothergill Cooke
1928 Introduction of
the television
1897 - The first
radio station
1973 - The first
cellphone
1969 - The
ARPANET was
developed
Segmentation
Internet Access
Fixed Line
Telecommunications
Media
Wireless
Telecommunications
Internet
Market Volume
Internet
Number of Internet Subscribers
Internet
Competitive Landscape
•Buyers have low switching costs
•Strong supplier power
•Potential entrants attracted to market growth
Internet
Forecasted Market Volume
Internet
Forecasted Number of Internet Subscribers
Wireless
Market Volume
Wireless
Number of Wireless Subscribers
Wireless
Competitive Landscape
•National governments are the sole
suppliers of bandwidth
•Large number of buyers
•Switching costs vary
Wireless
Forecasted Market Volume
wireless
Forecasted Number of Wireless Subscribers
Wireline
Market Volume
Wireline
Number of Wireline Subscribers
Wireline
Competitive Landscape
•Slow growth
•High threat of substitutes
•Buyer power is limited
•Low switching costs
Wireline
Forecasted Market Volume
Wireline
Forecasted Number of Wireline Subscribers
Technology
•AnalogVariable signal continuous in both time and a
•DigitalUses discrete values represented by binary nu
Technology
Spectrum
Licensing
•Is a radio
frequency that is
subject to usage
limitations
•Regulated by the
government
•Extremely
expensive (up to
$1billion)
Technology
Code 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
Technology
International Mobile Telecommunications-2000 (3G)
•Allows simultaneous use of speech and data
service
•Higher data rates
•Enormous costs of additional spectrum liscening
High Speed Download Packet Access
(HSDPA)
•Enhanced 3G network
•Higher data transfer speeds
•Began selling HSDPA USB modems
Technology
4G 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 hardware
5G - No specific definition yet
• Introduced in Korea in 2012
•Unknown speed and service
•Claim to be super high-speed
Regulatory Environment
Industry Canada
•Responsible for
communications policy
and spectrum
frequency allocation.
•Responsibility for
providing certification
and type-approval of
telecommunications
equipment in Canada.
Canadian Radio-television
and Telecommunications
Commission
Competition Bureau Industry
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.
Bringing Your World
Together
Innovation in Communications, Information and
Entertainment
RCi-b 10 year
RCi-b 5 year
RCi-b 1 year
Rogers Agenda
•
HistoryBusiness Segment
•
Rogers Wireless
•
Rogers Cable
•
Rogers
MediaManagementPerformanceRecommendation
History
E.S. Rogers Sr.
1913- Ted Rogers was
able to pick up a
report of a ship wreck
in Ireland while using
his telegraph set
1925- The Alternating
Current Tube system
schematics, hand-drawn
by Ted Rogers Sr. for his
Patent application.
1921- He is the first
amateur wireless
operator in Canada to
send a signal across
the ocean.
1928-Rogers
Batteryless Radios
merged with Majestic
Electric Radios, a
leading radio
manufacturer in
Chicago in 1928.
1927-CFRB stands as the
first
all-electric radio station in
the world, its transmitters
being
powered by Rogers A/C
Tubes.
1939-Ted Rogers Sr.
passed away suddenly
in 1939. The
employees at RogersMajestic and CFRB
were touched deeply
by this profound
tragedy.
The call-letters represent
Canada's
First Rogers Batteryless.
HISTORY
History
E.S. “Ted” rogers
1967- Ted Rogers
founds Rogers
Cable TV,
acquires Bramalea
Telecable and
formally enters
into the cable
business with 300
subscribers.
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.
1973- Rogers Cable
TV launches ‘cable tv
converters’ in
Toronto, providing its
subscribers with more
channels.
1969- Rogers
Community
Television
premieres.
1979- Rogers
becomes a public
company when it
acquires Canadian
Cablesystems
through a reverse
takeover and
becomes biggest
cable company in
Canada
HISTORY
History
E.S. “Ted” rogers
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.
1985- Cantel
(predecessor of
Rogers Wireless)
launches cellular
service on July 1.
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
1986- Rogers
Communications Inc.
is formed as the
parent company to
his operating
divisions.
1989- Rogers sells
U.S. cable assets for
over $1 billion profit
and invests profits in
wireless sector.
Rogers Broadcasting
acquires CFMT Toronto.
HISTORY
History
E.S. “Ted” rogers
1991- Rogers
Cablesystems and
partners launch
Viewer’s Choice
Canada, a pay-perview cable
television company.
1994- Rogers launches
$3.1 billion hostile bid
for Maclean Hunter, at
the time the largest
takeover in Canadian
history – Rogers Media
is created.
1993- Rogers
Broadcasting station
CFTR changes its
format and becomes
680News, the first allnews station in
Canada.
1997- Rogers Cantel
AT&T launches prepaid
Pay-As-You-Go cellular
service.
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.
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
History
E.S. “Ted” rogers
2002- Rogers launches
GSM wireless network
2000- Rogers
acquires the
Toronto Blue Jays
major league
baseball team.
Rogers Cable launches
Video On Demand.
CFMT-TV rebranded as
Omni Television.
2001- Rogers Media
acquires control of
Sportsnet from CTV.
Renamed Rogers
Sportsnet
2004- Rogers
Communications Inc.
acquires the SkyDome
stadium in Toronto.
2006- Rogers Cable
launches the Rogers
Yahoo!
Rogers buys back AT&T's
interest in Rogers
Wireless
Rogers Media
launches “Hello!”
magazine
2003- Rogers Cable
launches Personal
Video Recorders
(PVRs)
2005- Rogers Cable
acquires Call-Net and
offers local telephone
service.
HISTORY
History
E.S. “Ted” rogers
2007- Rogers acquires five
Citytv television stations
2009- Nadir Mohamed
becomes President &
CEO of Rogers
Communications Inc.
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.
HISTORY
Business Segments
Rogers
Communication
s
Rogers Wireless
Rogers Cable
Rogers Media
BUSINESS
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
Rogers Wireless
Operating Revenue:
•Post paid (voice and data)Prepaid
(voice and data)One way
messagingEquipment salesNetwork
revenue and Data Revenue
Profit:
Operating Expenses:
•Cost of equipment salesSales and
marketing expensesOperating,
general and administrative
expenses
Rogers Cable
•Canada largest cable television service providerHigh
BUSINESS
Rogers Cable
Operating Expenses:
Operating Revenue:
•Analog cable serviceDigital cable
service revenueInternetRogers
Home PhoneRBDRogers Retail
Profit:
•Sales and marketing
expensesOperating, general and
administrative expensesCost of
Rogers Retail sales
Rogers MEdia
Portfolio of category-leading media
assets Radio and television
broadcastingPublishingSports
entertainmentOnline properties
BUSINESS
Rogers Media
Operating Revenue:
Operating Expenses:
revenuesSubscription revenuesRetail
product revenuesSales of ticket, receipts,
of league revenue sharing and concession
sales associated with Rogers Sports
Entertainment
and administrative expenses
•Advertising revenuesCirculation
Profit:
•Cost of salesOperating, general
Management
MANAGEMENT
Financial Statement
RCi-b 5 year
RCi-b 1 year
Buy
The Future is Friendly
T 10 Year
T 5 Year
T 1 Year
Telus Agenda
•HistoryList of
AssetsStructureWirelessWi
redManagementPerforman
ceRecommendation
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.
1991- The Province of
Alberta sold its
remaining ownership
interest in TELUS for
$870 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.
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.
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.
2000- TELUS
acquires wireless
company Clearnet.
2004- TELUS
acquires
ADCOM, Inc.
2005- TELUS
integrates its wireline
and wireless
segments of the
business – TELUS
Communications and
TELUS Mobility – into
one operating
structure.
2008- TELUS
completes
acquisition of
Emergis.
2006- TELUS
acquires Assurent
Secure
Technologies.TELU
S completes the
restructuring of
TELUS
Communications
and TELUS Mobility.
HISTORY
Business Segments
Telus
Telus Wireless
Telus Wireline
BUSINESS
SEGMENTS
BUSINESS
SEGMENTS
Telus Wireless
BUSINESS
SEGMENTS
Telus Wireless
BUSINESS
SEGMENTS
Telus Wireless
Risks
BUSINESS
SEGMENTS
Telus Wireline
BUSINESS
SEGMENTS
Telus Wireline
Risks
BUSINESS
SEGMENTS
Management
How Telus is
Organized:
MANAGEMENT
Management
MANAGEMENT
Management
MANAGEMENT
Financial Statements
FOCUSED,
RESPONSIVE & LEAN
“To deliver true value as seen through the eyes of
our customers”
MBT 10 year
MBT 5 year
MBT 1 year
MTS Agenda
•HistoryBusiness SegmentsManagementPerforma
History
1997 - Became a
public traded
company on the TSX
2004 - Acquired
Allstream and become
the 3rd largest telecom
provider in Canada
2000 - Initiated
broadband service in
Manitoba
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.
HISTORY
History
2004 –Became
strategic alliance with
BT: broaden IP based
technology service
2005 - Pierre Blouin
became CEO (Former
BCE executive)
2005 - Acquired
Delphi Solutions Corp.
2006 - Introduced
high definition TV
service
2006 – Spent $320
million share
repurchase
2008 - Manitoba’s
Top Employers by
Winnipeg Free Press
HISTORY