or losses, changes in the fair value of derivative instruments, other
income and expenses, impairment of assets and changes in income tax
expense.
Wireless
The trends in Wireless revenue and adjusted operating profit reflect:
 the growing number of wireless voice and data subscribers
 decreased churn
 higher usage of wireless data
 higher handset subsidies as more consumers shift to smartphones
 a slight decrease in blended ARPU due to changes in wireless price
plans.
We continue to target higher value postpaid subscribers, which has
contributed to the significantly heavier mix of postpaid versus prepaid
subscribers. Growth in our customer base and overall market
penetration have resulted in higher costs over time for customer service,
retention, credit and collection; however, most of the cost increases
have been offset by gains in operating efficiencies.
Wireless’ operating results are influenced by the timing of our
marketing and promotional expenditures and higher levels of subscriber
additions and related subsidies, resulting in higher subscriber acquisition
and activation-related expenses in certain periods. This increased activity
generally occurs in the third and fourth quarters, and can also occur or
be accentuated by the launch of popular new wireless handset models.
Cable
The trends in Cable services revenue and operating profit increases are
primarily due to:
 higher penetration and usage of Internet, digital and telephony
products and services
 offset by competitive losses of television subscribers and pricing
changes over the past year.
Cable’s operating results are affected by modest seasonal fluctuations
in subscriber additions and disconnections, typically caused by:
 university and college students moving
 individuals temporarily suspending service for extended vacations or
seasonal relocations
 the concentrated marketing we generally conduct in our fourth
quarter.
Business Solutions
The trends in Business Solutions operating profit margin primarily reflect
the ongoing shift from lower-margin, off-net legacy long distance and
data services to higher-margin, on-net next generation IP-based
services.
Business Solutions does not generally have any unique seasonal aspects
to its business.
2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 55