An independent analysis of benefits to Rogers Communications Inc and Torontonians. This is my independent analysis for academic purpose and was not funded by any telecom operator.

1. Business Case for Extending Cell Phone Coverage to the TTC
Subway System
Rogers, Toronto and the society
Analysis by: Pramod Jindal
MBA Candidate, Rotman School of Management
pramod.jindal13@rotman.utoronto.ca
647-773-4032
Disclaimer: This is an independent analysis with Rogers as the beneficiary but I have no relationship with Rogers or other operators. RogersTM iis a trademark of
Analysis by: Pramod Jindal, MBA Candidate, Rotman
Rogers Communications Inc.

2. Extending coverage to TTC subway would result in new stream of steady cash flows for Rogers
Market Opportunity(FY 2012)
– Voice Market $378M1
• Rogers revenue $132 Million1
– Data Market $14M1
• Rogers revenue $5 Million1
– Rogers
• Steady stream of annual revenue $137 Million1
• Operating profit $85 Million1
• PV of all future operating profits $1.2 Billion1
1: Based on the financial modeling and projections using industry reports
Analysis by: Pramod Jindal, MBA Candidate, Rotman

3. This initiative offers many soft benefits to Rogers
Market Opportunity
Soft benefits
• Leverage LTE/HSPA+ to provide uninterrupted coverage to millions of Torontonians
• Catch up with rivals and reduce customer churn
• Opportunity to
– Retain reputation for innovation and reliability
– Sell Rogers services to TTC
– Epitomize great customer experience and satisfaction
– Build great public relations
– Create another barrier for new entrants
– Retain high paying subscribers and business customers
Analysis by: Pramod Jindal, MBA Candidate, Rotman

4. This project would contribute to GDP, societal benefits and job creation;
Societal Benefits
– Annual contribution to GDP $140 Billion1
– Annual societal benefits
• Stats Can societal benefit multiplier $262 Billion1
• Consumer surplus $76 Billion1
Total $338 Billion1
– Job creation 2,3341
– Seamless connectivity
– Enjoyable TTC ride
– Competitive advantage of Toronto
1: Based on the industry research reports
Analysis by: Pramod Jindal, MBA Candidate, Rotman

5. This project poses unique risks and challenges
Risks
– Over crowding in TTC giving no personal space for voice or data usage
– Noise levels in TTC hindering voice usage
– High temp in TTC making phone usage uncomfortable
– Signal interference with TTC lines
– Drop in TTC ridership and popularity
– No hand space to use the phone or tablet( shopping bags, hand bags etc.)
– Riders refraining from using phone due to courtesy
– Riders using offline content (games, reading, and listening)
– Phones not charged enough to use data
– Social aspect of journey (spend time talking to people rather than using phone)
– Other eyeball catching commodities
– Challenge of installing in the ever busy tunnels and subway stations
– Price war by Bell pay-phones
– Quality not as good as at surface level leading to procrastination
Analysis by: Pramod Jindal, MBA Candidate, Rotman

6. References
– http://www.cwta.ca/CWTASite/english/pdf/OVUM_Study.pdf
– Rogers 2011 Annual Report
– http://www.apta.com/resources/statistics/Documents/Ridership/2011-q2-
ridership-APTA.pdf
– http://www.iabcanada.com/wp-
content/uploads/2012/04/IABCanada_MobileInCanada_041012_FINAL.pdf
– http://business.financialpost.com/2012/05/10/more-canadians-own-smartphones-
but-blackberry-slipping-j-d-power/
– http://mobilesyrup.com/2012/06/03/cwta-report-says-smartphone-adoption-
increased-15-in-the-last-year-now-sitting-at-48/
– http://www.ttc.ca/PDF/Transit_Planning/ridership_growth_strategy_2003.pdf
Analysis by: Pramod Jindal, MBA Candidate, Rotman

7. Analysis by: Pramod Jindal, MBA Candidate, Rotman

8. Analysis by: Pramod Jindal, MBA Candidate, Rotman

9. Analysis by: Pramod Jindal, MBA Candidate, Rotman

10. Analysis by: Pramod Jindal, MBA Candidate, Rotman