Cogeco 2014 Annual Report Download - page 10

MD&A COGECO CABLE INC. 2014 9
OVERVIEW OF THE BUSINESS
Cogeco Cable is a telecommunications corporation. It is the 11th largest cable operator in North America. In fiscal 2014, the Corporation reported
its operating results in three principal operating segments: Canadian cable services, American cable services and Enterprise data services. The
reporting structure reflects how the Corporation manages its business activities to make decisions about resources to be allocated to the segments
and to assess their performance. For the year ended August 31, 2014 the proportion of each segment as a percentage of the Corporation's
consolidated revenue and adjusted EBITDA(1) were as follows:
For further details on the Corporation's segmented operating results, please refer to the “Segmented operating results” section.
CANADIAN AND AMERICAN CABLE SERVICES
The Canadian and American cable services segments provide a wide range of Television, High Speed Internet (“HSI”) and Telephony services
primarily to residential customers. The Canadian cable services activities are carried out by Cogeco Cable Canada in the Provinces of Québec
and Ontario and the American cable services activities are carried out by Atlantic Broadband in Western Pennsylvania, South Florida, Maryland/
Delaware and South Carolina.
As at August 31, 2014, the Canadian cable services segment provided Television service to 797,165 customers, HSI service to 679,584 customers
and Telephony service to 469,273 customers for a total of 1,946,022 primary service units(2) ("PSU"). The American cable services segment
provided Television service to 225,929 customers, HSI service to 189,869 customers and Telephony service to 80,364 customers for a total of
496,162 PSU.
The following four services represent our core suite of offerings:
Television services: We offer our customers a full array of cable television services and programming offerings ranging from traditional analogue
cable offerings to full digital services. Our customers have access to a basic service, pay and discretionary services, On-demand services, high
definition television ("HDTV") and advanced television services.
HSI Services: We offer HSI packages with different transfer speeds, monthly data transfer capacities and service attributes in all of our territories
and additional packages of greater speeds in areas where we have deployed the DOCSIS 3.0 technology. Simple and effective security and
email solutions are available to our HSI customers with automatic updates to protect end-users' devices and online activities. HSI service customers
can also connect wirelessly to the Internet at no extra cost from over 300 designated wireless Wi-Fi Internet hotspots in our Canadian footprint.
Telephony services: The telephony service uses Internet protocol ("IP") to transport digitised voice signals over the same private network that
brings Cable Television and HSI services to customers. Residential customers can subscribe to different packages. All residential Telephony
service customers have access to direct international calling and can subscribe to various international long distance plans, the voicemail and
other popular custom calling features.
Business services: We provide Television, Internet and Telephony services to small and medium sized businesses across our coverage areas.
A wide range of broadband Internet packages, Telephony services and other advanced telecommunication services, such as Session Initiating
Protocol ("SIP") and Primary Rate Interface ("PRI") trunk solutions, are available to our business customers, depending on the area.
(1) The indicated terms do not have standardized definitions prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other
companies. For more details, please consult the “Non-IFRS financial measures” section of the MD&A.
(2) Represents the sum of Television, HSI and Telephony service customers.