Rogers Q3 - Growing Interest in 4K and Streaming Subscriber trends are improving in our Cable segment on the strong popularity of Ignite Internet, including Ignite
Gigabit Internet.
Our Cable product mix continues to shift to higher-margin Internet services. We generated double-digit Internet revenue
growth for the fifth quarter in a row. Quarterly Internet net additions of 39,000 were the highest since 2011 and
improved 15,000 year on year.
Over 40% of our residential Internet base is on plans of 100 megabits per second or higher, and the majority of new
Internet subscribers are signing on at these speeds. By the end of 2016, we expect to offer Ignite Gigabit Internet to our
entire Cable footprint of over four million homes at an incremental in-year capital cost of less than $50 per home. We will
increase capacity as the demand for speed grows with further annual success-based capital investments, positioning us
well to earn attractive returns on investment for our shareholders.
Consumer interest in 4K TV continues to grow. By the end of 2016, we expect to have delivered approximately 100 live
sporting events in 4K. To achieve the high quality 4K resolution, as well as to support our anticipated Internet Protocol
Television (IPTV) introduction, high levels of bandwidth are required. Our hybrid fibre-coaxial cable network already has
the capability to deliver the required bandwidth. With more 4K television sets and video streaming devices in the home,
the high bit rate requirement further emphasizes the speed and capacity advantages of Rogers’ hybrid fibre-coaxial
cable network over the legacy networks of our telecommunication competitors. We are well positioned to improve
subscriber trends further over time with enhanced TV offerings, including IPTV.