Rogers Communication Inc Case Study [Wireless Division]

Group 7 (Names) Spandan Mishra Stalin Mohapatra Sudipt Mishra Swastik Mohapatra Swayambhu Dutta Tausif Akbary !aibha" Sharma !arun $ %and&y !asundhara (ain

Roll Nos U113232 U113233 U113234 U113235 U113236 U11323 U11323# U11323' U11324)

*ri&f +ntrodu,tion
-Rogers Communications is a di"&rsifi&d publi, .anadian ,ommuni,ations and m&dia ,ompany/ +t op&rat&s parti,ularly in th& fi&ld of wir&l&ss ,ommuni,ations0 ,abl& t&l&"ision0 t&l&phon&0 and +nt&rn&t ,onn&,ti"ity with si1nifi,ant additional t&l&,ommuni,ations and mass m&dia ass&ts/ -2o1&rs0 *&ll and T&lus w&r& .anada3s thr&& national wir&l&ss ,arri&rs and ,oll&,ti"&ly s&r"i,&d appro4imat&ly '55 of th& ,ountry3s total subs,rib&rs/ Mark&t Shar& of T&l&,ommuni,ation .ompani&s in .anada as of 2))'
( ' & % $ # " ! #0) "$) %*' %*$ "0) !$) !0) $) 0) * " $) 0 Rogers Bell Telus 0) Others Su+scri+ers in ,os-million. /ercentage

'*$

- 6rom 2))6 to 2))' 2o1&rs show&d a 1rowth of #50T&lus '5 and *&ll 55/

Com0arative Statements o1 Income +y Com0any -23 !00(.

R ogers Bell Telus S ha4 R evenues +y S egment Wireless Wireline 5edia Other 6654 "(#' #0& 6 6!&' 11731 4558 "'#0 6 6%%" 17735 4735 $ $! 6 6!' 6 9606 ""(

3391

O0erating 7 80enses9 C ost o1 S ales S ales and 5ar:eting O0erating; < eneral and =dminitrative De0reciation and =morti>ation Other

"'0 !0& 6 #%' &"0 %$ 9163 !$%' %#& 6$( ('0 $0! 0 #&' $1,556 $2.51

#$!$ 6 6 % ! ""& $!& 14544 " ( &!" ' !#$0 "%' #$! %"0 $1,630 $2.50

6 6 $(!$ &!! (0 6 7837 &%( #"" "! "0# !0" (( 00! $1,002 $3.14 '$! $'# 2436 ($$ !"& 6' &!% ( 0 $"$ $535 $1.25

O0erating Income Interest on ?ong Term De+t Other 7 80enses - Income. Income +e1ore Income Ta8es Income Ta8es =1ter Ta8 7 80enses ,et Income - loss. =d@usted ,et Income -loss. =d@usted ,et Income -loss. 0er share

=nalysis o1 Income Statements W RT W ireless

'000

- =s o1 ,o4 4e can see that Rogers is leading in the 4ireless sector* The amount o1 income generated is greater than all the other com0etitors* - The o0erating e80ense is also reasona+le as com0ared to other com0anies li:e Bell ho have a large Revenue +ase +y utili>ation o1 a larger O0erating Cost* - Only ma@or 0ro+lem ?oss 0er share 4hich is com0ara+le 4ith Bell even though the 1igures are not as high as BellAs

%000 #000 !000 0

2o1&rs p&r,&nta1& of r&"&nu& from 7ir&l&ss859

$' $& $% $$ $# $" $" $! $ $0 #( !00$ !00% !00& !00' !00( $! $# $% $&

%ost:paid "oi,& as p&r,&nta1& of total 2o1&rs 7ir&l&ss

00 '0 %0 #0 !0 0 !00$ !00% !00& !00' !00( '% '# &% &" &0

.ustom&r Statisti,s by .ompany

3ear Su+scri+ers =verage Revenue 0er Bser Churn-=verage /er 5onth. Cost o1 =cCuisition 3ear Su+scri+ers =verage Revenue 0er Bser Churn-=verage /er 5onth. Cost o1 =cCuisition Rogers !00% !00& !00' !00( %&&'000 &""'000 &(#!000 '#(#000 $%* " % *! %#*"# %"*$( 3ear Su+scri+ers =verage Revenue 0er Bser Churn-=verage /er 5onth. Cost o1 =cCuisition 3ear Su+scri+ers =verage Revenue 0er Bser Churn-=verage /er 5onth. Cost o1 =cCuisition Bell !00% !00& !00' $($#000 %! %000 %#(&000 $ * ' *$ #!0 Sha4 !00% $"*(! *& #0# !00& $#*!( *% "($ !00' !00( %'""000 $ *& *& "$0 !00(

*"! * $ * *0% "(( #0 #$( #"" Telus !00% !00& !00' !00( $0$%000 $$%'000 % !(000 %$!#000 %" *"" # ! %# *#$ !($ %" *$& "$ $' *$' ""&

=s o1 ,o4 4e can see that Rogers is leading in the su+scri+ers in all the years =verage Revenue 0er user has also increased in the last ! years Churn Rate has decreased in com0arison to its com0etitors Only ma@or 0ro+lem is its cost o1 acCuisition

Sha4 4ill +egin o11ering in !0

Advanced Wireless Service Auction

- Industry Canada released 4ireless s0ectrum 1or auction across the country in !00' - =00ro8imately ##) o1 this s0ectrum 4as set aside 1or ne4 entrants* These ne4 entrants are de1ined as carriers 4ith less than 0) o1 the countryAs 4ireless revenue - The auction concluded a1ter "" rounds o1 +idding 4ith D#*!$ +illion in 0roceeds generated more than " times the amount initially e80ected - There no restrictions on re6selling the s0ectrum a1ter it had already +een auctioned o11 - The auction changed the com0etitive landsca0e 1or Canadian 4ireless net4or: 0roviders e8isting 0layers e80anded and ne4 com0etitors entered the Canadian mar:et - The 1ollo4ing slides 0rovide a summary o1 the a+ove mentioned com0etitive landsca0e

Total Amount of Winning Bids in $!

!00000000 000000000 '00000000 %00000000 #00000000 !00000000 0 Rogers Eideotron Sha4 5TS Others

Total "um#$% of Winning Bids

&0 %0 $0 #0 "0 !0 0 0 Rogers Eideotron Sha4 5TS Others

Total &o'ulation (o)$%$d #* Bids

"$000000 "0000000 !$000000 !0000000 $000000 0000000 $000000 0 Rogers Eideotron Sha4 5TS Others Series

+,-.+ /

&%ima%* Bundl$ -$og%a ,'tions '0i1 2o1us Fuadru0l e 0lay Fuadru0l e 0lay Fuadru0l e 0lay Bundl$ ,'tions

3is1ou nt B%and

(ont%a1 5oi1$ t &lans +$4ui%$ d 3es 3es ,o 3es 3es 3es

3ata &lans

6nlimit$ d 5oi1$ and 3ata &lans ,o ,o ,o 6nlimit$ d 5oi1$ and 3ata &lans ,o ,o ,o

Rogers ,ation6 Wireless Wide 2ido Chatr B.77 ,ation6 Wide ,ation6 Wide &%ima%* -$og%a '0i1 2o1us ,ation6 Wide ,ation6 Wide ,ation6 Wide

,o ,o 3es 3is1ou nt B%and

3es 3es ,o 3ata &lans

(ont%a1 5oi1$ t &lans +$4ui%$ d 3es 3es ,o 3es 3es 3es

Bell 5o+ility Eirgin 5o+ile Solo 5o+ile

Fuadru0l e 0lay Fuadru0l e 0lay Fuadru0l e 0lay

,o ,o 3es

3es 3es ,o

T.76/

&%ima%* Bundl$ -$og%a ,'tions '0i1 2o1us ,ation6 Wide ,ation6 Wide ,ation6 Wide &%ima%* -$og%a '0i1 2o1us ,ation6 Wide -eventu ally. Fuadru0l e 0lay Fuadru0l e 0lay Fuadru0l e 0lay Bundl$ ,'tions

3is1ou nt B%and

(ont%a1 5oi1$ t &lans +$4ui%$ d 3es ,o 3es 3es 3es 3es

3ata &lans

6nlimit$ d 5oi1$ and 3ata &lans ,o ,o ,o 6nlimit$ d 5oi1$ and 3ata &lans 3es

Telus 5o+ility Goodo 5i:e

,o 3es ,o 3is1ou nt B%and

3es ,o ,o 3ata &lans

(ont%a1 5oi1$ t &lans +$4ui%$ d ,o 3es

WI,D 5o+ile

Single 0lay

,o

3es

&%ima%* Bundl$ 3is1ou -$og%a' ,'tions nt 0i1 B%and 2o1us Sha4 Eideotro n Western Canada Fue+ec Fuadru 0le 0lay Fuadru 0le 0lay Single 0lay ,H= ,o 3es

(ont%a1 5oi1$ t &lans +$4ui%$ d ,H= ,o ,o ,H= 3es 3es

3ata &lans

6nlimit$ d 5oi1$ and 3ata &lans ,H= 3es 3es

,H= 3es 3es

5o+ilicity Ten ma@or Canadia n cities /u+lic 5o+ile Sas:Tel 5TS Ontario

Single 0lay

3es ,o ,o

,o 3es 3es

3es 3es 3es

,o 3es 3es

,o 3es ,o

Sas:atch Fuadru e4an 0le 0lay 5anito+a Fuadru 0le 0lay

7ir&l&ss Data as p&r,&nta1& of total 2o1&rs 7ir&l&ss

!$ !0 $ " 0 ' $ 0 !00$ $ !0

!00%

!00&

!00'

!00(

- 5ost o1 the telecom o0erators across the glo+e ma:e their money 1rom the data 0lans - I1 Rogers 4ants to ma:e 0ro1its it must ensure more data connections 4hich can only +e achieved 4ith the introduction o1 ne4 and chea0 data 0lans li:e the ne4 0layers 5o+ilicity; Eideotron; Wind 5o+ile; Sas: Tel etc* - Rogers must e11iciently utili>e its ne4ly acCuired s0ectrum to give more o1 data services in addition to the 4ireless voice

.on,lusions9
As of now82))'9 2o1&rs .ommuni,ation is on& th& l&adin1 t&l&,om op&rator in .anada +t pro"id&s all typ&s of s&r"i,&s that th& t&l&,om op&rator ,an off&r +t has r&,&ntly a,;uir&d many winnin1 bids with a hu1& subs,rib&r bas& +t is la11in1 b&hind in th& data s&r"i,& As on& of th& ma<or sour,& of r&"&nu&s for any t&l&,om op&rator is its data s&r"i,&s so 2o1&rs must ,on,&ntrat& to build up mor& data d&li"&ry ,apability and must add mor& attra,tin1 and &4,lusi"& data plans +n short it must in,r&as& its =%>? and .A%>? +ntrodu,tion of mor& data plans 8,ustomi@&d or unlimit&d &t,9 ,an attra,t mor& ,ustom&rs Th& a,;uisition rat& of 2o1&rs is on& of th& hi1h&st and it must fo,us to impro"& on that by in,r&asin1 ,ustom&r bas&8whi,h th&y ha"& alr&ady start&d doin1 by winnin1 many bids9 Th& ,hurn rat& of 2o1&rs alon1 with th& offs&ttin1 ,ost b&in1 hi1h&r it must fo,us to r&du,& it +ndustry r&t&ntion sur"&ys ha"& shown that whil& pri,& and produ,t ar& important0 most p&opl& l&a"& any s&r"i,& b&,aus& of dissatisfa,tion with th& way th&y ar& tr&at&d/ Th&y would not b& lookin1 around if th&y w&r& happy with th&ir ,urr&nt pro"id&r0 its s&r"i,& and &mploy&&s/ Th& =ffs&ttin1 ,ost of th& 2o1&rs ,ommuni,ation is A1/#32 bn

Su11&stions B Strat&1y C
=utomatic ,um+er Identi1ication -=,I. and your customer data+ase to identi1y all customers 4hen they call your customer service* Bring their com0lete history u0 on the screen 4hen they call; including their 0ro1ita+ility segment* Success1ul com0anies have s0ecial <old Customer teams* Their customer service call director automatically routes calls 1rom such customers directly to these teams*
Us& th& sam& ,on,&pt in th& w&bsit& with th& h&lp of a ,ooki&D,ustom&r 2apid probl&m sol"in1 and 1r&&t th& r&turn ,ustom&rs with off&rs Dir&,t out:bound &mails