Acquisitions, Divestitures or Investments
Acquiring complementary businesses and technologies, developing
strategic alliances and divesting portions of our business are often
required to optimally execute our business strategy.
Services, technologies, key personnel or businesses of companies we
acquire may not be effectively assimilated into our business or service
offerings, or our alliances may not be successful. We also may not be
able to successfully complete any divestitures on satisfactory terms, if at
all. Divestitures may reduce our total revenues and net income by more
than offset by the sales price.
Inventory Obsolescence
Our inventory balance mainly consists of wireless handset devices,
which generally have relatively short product life cycles due to frequent
wireless handset introductions. If we cannot effectively manage
inventory levels based on product demand, this may increase the risk of
inventory obsolescence.
Complexity of Our Business
Our businesses, technologies, processes and systems are operationally
complex and increasingly interconnected. If we do not execute properly,
or if manmade or natural disasters impact them, customers may have a
negative experience, resulting in increased churn and lower revenue.
Reliance on Third Party Service Providers
We have outsourcing arrangements with third parties to provide certain
essential components of our business operations to our employees and
customers, including payroll, certain facilities or property management
functions, call centre support, certain installation and service
technicians, certain information technology functions, and invoice
printing. Interruptions in these services can adversely affect our ability to
service our customers.
Dependence on Certain Key Infrastructure and Handset
Vendors
Our wireless business has relationships with a relatively small number of
essential network infrastructure and handset vendors. We do not have
operational or financial control over them, and only have limited
influence on how they conduct their business with us.
If one of our network infrastructure suppliers fails, it could delay adding
network capacity or new capabilities and services across the business.
Handsets and network infrastructure suppliers can extend delivery
times, raise prices and limit supply due to their own shortages and
business requirements, among other things. If these suppliers do not
develop handsets that satisfy customer demands, or deliver products
76 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT