MANAGEMENT’S DISCUSSION AND ANALYSIS
BUSINESS SOLUTIONS
LEADING-EDGE COMMUNICATIONS SERVICES TO
CANADIAN BUSINESSES
 sells to medium and large enterprises, governments and
financial institutions amongst others
 7,298 on-net fibre connected buildings
 fibre passes next to an additional 20,014 near-net buildings.
SERVICES THAT MEET THE INCREASING DEMANDS OF
TODAY’S CRITICAL BUSINESS APPLICATIONS
 voice, data networking, Internet protocol (IP) and ethernet services
over multiservice customer access devices that allow customers to
scale and add services such as private networking, Internet, IP voice
(SIP) and cloud solutions which blend seamlessly to grow with their
business requirements
 optical wave, Internet, ethernet and multi-protocol label switching
(MPLS) services provide scalable and secure metro and wide area
private networking that enable and interconnect critical business
applications for businesses that have one or many offices, data
centres or points of presence (as well as cloud applications) across
Canada
 extensive wireless and cable access networks services for primary,
bridging and back-up connectivity
 contracts are typically for 1 to 5 year terms, supported by
comprehensive service level agreements.
NETWORK
Business Solutions is supported by Rogers networks and a dedicated
business support network monitoring team that provides Business
Solutions customers with proactive network monitoring and problem
resolution.
DISTRIBUTION
Our enterprise and carrier wholesale sales team sells Business Solutions
services to Canadian business and public sector telecom customers. An
extensive network of third-party channel distributors deal with IT
integrators, consultants, local service providers and other indirect sales
relationships. This diverse approach gives greater breadth of coverage
and sustains strong sales growth for next generation services.
COMPETITION
A number of different players in the Canadian market compete for
enterprise network and communications services. There are relatively
few national providers, but each market has its own competitors that
usually focus on the geographic markets where they have the most
extensive networks.
In the wireline voice and data market, we compete with facilities and
non-facilities-based telecommunications service providers. In markets
where we own network infrastructure, we compete with incumbent
fibre-based providers. The following are our main competitors, but
there are also regional competitors:
 Ontario: Bell, Cogeco Data Services and Allstream
 Quebec: predominantly Bell and Videotron
 Atlantic Canada: Bell Alliant and Eastlink.
 Western Canada: Shaw and Telus
$0.36
BILLION
(%)
2013 BUSINESS SOLUTIONS SERVICE REVENUE MIX
NEXT GENERATION  59%
LEGACY  41%
ACQUISITIONS
We made two major acquisitions this year that allow Business Solutions
to further enhance its suite of enterprise-level data centre and cloud
computing services, enabling Canadian businesses to benefit from a
single provider able to ensure end-to-end security and reliability of
critical business applications.
 Blackiron (from Primus Telecommunications Canada Inc.) for
$198 million on April 17, 2013
 Pivot Data Centres for $158 million on October 1, 2013.
BUSINESS SOLUTIONS FINANCIAL RESULTS
Years ended December 31
(In millions of dollars, except percentages) 2013 1 2012 % Chg
Operating revenue
Next generation $ 213 $ 162 31
Legacy 149 183 (19)
Service revenue 362 345 5
Equipment sales 12 6 100
Operating revenue – Business Solutions 374 351 7
Operating expenses (268) (262) 2
Adjusted operating profit – Business
Solutions $ 106 $8 9 1 9
Adjusted operating profit margin 28.3% 25.4%
Additions to property, plant and equipment $ 107 $6 1 7 5
1 Results of operations include Blackiron’s operating results as of April 17, 2013 and
Pivot Data Centres as of October 1, 2013 (the dates of acquisition).
(IN MILLIONS OF DOLLARS)
BUSINESS SOLUTIONS SERVICE REVENUE BREAKDOWN
2013
2012
2011
$149 $213
$183 $162