Rogers business case for extending coverage to the ttc subway system
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The document outlines a business case for extending cell phone coverage in the TTC subway system, emphasizing potential annual revenues of $137 million for Rogers, with a present value of future operating profits estimated at $1.2 billion. It highlights both the financial benefits and soft advantages such as improved customer satisfaction and competitive advantage, while also addressing various risks and challenges involved in the project. The initiative could also lead to significant societal benefits, including GDP contributions and job creation.
Rogers business case for extending coverage to the ttc subway system
- 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 [email protected] 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