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Rogers Communications Inc. (TSX: RCI.A, TSX: RCI.B, NYSE: RCI) is one of Canada's largest communications companies, particularly in the field of wireless communications and cable television, with additional telecommunications and mass media assets. Edward S. "Ted" Rogers is the company's controlling shareholder and chief executive.
The company considers its history to date back to the Rogers Vacuum Tube Company founded by Edward S. Rogers, Sr., which started CFRB (RB stands for "Rogers Batteryless"). However, the current company's history dates back to the formation of Aldred-Rogers Broadcasting (originally co-owned with Joel Aldred), which acquired CHFI-FM in 1960 and helped launch CFTO-TV in 1961. Its primary competition is Bell Canada in Ontario & Quebec, and TELUS Mobility nation wide, now including Quebec & Ontario for wireless communications.
History
The company began with Edward S. Rogers, Sr., who had envisioned radio as an electric pipeline, reaching into people's homes to entertain, inform and educate.
In 1925, Rogers, Sr. invented the world's first alternating current (AC) radio tube, which then enabled radios to be powered by ordinary household electric current. This was a dramatic breakthrough in technology and it became the key factor in popularizing radio reception. After this invention radios became far more commonplace.
In 1931, Rogers, Sr. was awarded an experimental television licence in Canada. He was working on radar when on May 6, 1939 he died at the young age of 38. He left a widow, Velma, and a five-year-old son, Edward. His business interests were sold. However, his son Edward (Ted Rogers) was determined to carry on his father's legacy.
1960s
While he was an articling student with Tory, Tory, DesLauriers & Binnington, Ted Rogers started Rogers Radio Broadcasting Limited, which acquired the nation's pioneer FM station, CHFI-FM. In 1962, he pioneered stereo broadcasting in FM with CHFI and also founded CFTR in Toronto.
By making available FM radios to boost FM penetration, which was only at 3% at the time, Ted Rogers was able to make more Canadians aware of FM transmitters. CHFI-FM quickly became one of Canada's most listened to FM radio stations and also became the most popular and profitable FM radio station in Canada. Rogers’ interests in radio led him to cable television in the mid-1960s. He wanted Canada's fledgling cable operators to carry CHFI on a spare cable channel and the more he studied the cable world, the more he became attracted to the potential for programming choices on cable television. He entered the cable business in 1967, and was awarded television licences for areas in and around Toronto, Brampton and Leamington.
1970s
In the 1970s, Rogers Cable Television had become Canada's most innovative cable company. In 1974, for example, it became the first cable company to expand past 12 channels, and the cable company specialized in adding more programming choice, in particular with multi-cultural television. Through a reverse-takeover in 1979, Ted Rogers’ company, Rogers Cable TV Limited, acquired control of Canadian Cablesystems Limited. In 1980, Rogers purchased Premier Communications Limited, which almost doubled Rogers’ cable subscribers and made Rogers the largest cable television company in Canada.
1980s
As a founding shareholder of Rogers Cantel Inc., which commenced service in 1985, Rogers entered the mobile phone market. The company operated a national cellular telephone network in Canada in competition with the established telephone companies. Rogers Cantel Mobile Communications Inc., which is now called Rogers Wireless, is now a public company 51% of which is owned by Rogers Communications.
Between 1979 and 1982, Rogers Communications acquired and built a number of cable television systems in the United States. In March 1989, Rogers Communications completed the sale of its US cable television interests for CDN $1.581 billion.
This led to Rogers Communications Inc. acquiring 40% of Unitel Communications, formerly CNCP Telecommunications, in September 1989. Unitel was granted permission by the Canadian Radio-television and Telecommunications Commission in June 1992 to compete with the Canadian telephone monopolies in the long-distance market. In January 1993, 20% of Unitel Communications was sold to AT&T. As a result of this transaction, Rogers Communications Inc.'s interest in Unitel was reduced to 32%. In September 1995, Unitel Communications reached an agreement in principle with AT&T and certain of its bankers to restructure Unitel. At the close of this transaction, Rogers Communication no longer had an equity investment in Unitel.
1990s
On March 31, 1994, Rogers Communications Inc. successfully completed its offer for the shares of Maclean-Hunter and on December 19, 1994, the CRTC approved the transaction. The publishing assets of Maclean-Hunter were subsequently combined with its existing radio and television operations to form Rogers Media Inc.
2000s
Rogers Communications Inc. acquired the Toronto Blue Jays Baseball Club in 2000 and several years later, in 2004, acquired Skydome which is the Blue Jays home venue and largest covered indoor entertainment complex in Canada. The complex was renamed Rogers Centre in February 2005.
In 2000, Rogers acquired Cable Atlantic from Newfoundland businessman Danny Williams. The deal, worth $151.8 million, brought Rogers approximately 75,000 subscribers. With the purchase of Cable Atlantic Rogers scrapped its plan to buy Vidéotron which was later purchased by Quebecor.
In July 2001, Rogers Media acquired CTV Sportsnet, and renamed Rogers Sportsnet that November. The FAN 590 sports radio station joined Rogers Media in August 2001 along with 14 Northern Ontario radio stations.
Rogers Cable launched Digital Television into Canadian homes in September 2001. Rogers On Demand was launched as a home video library over cable in February 2002, and in November 2003, Rogers Cable made personal video recorders (PVRs) available to its subscribers.
In summer 2004, Rogers partnered with Yahoo! to create Rogers Yahoo!, which offers Yahoo! premium features to Rogers broadband internet customers.
In fall 2004, several strategic transactions were executed that significantly increased Rogers exposure to the potential of the Canadian wireless market. Rogers acquired the 34% of Rogers Wireless owned by AT&T Wireless Services Inc, at an attractive price. Soon thereafter, Rogers Wireless acquired Microcell Telecommunications Inc., along with its popular Fido brand, which created Canada's largest wireless operator and only GSM provider. In December, Rogers Communications repurchased the shares of Rogers Wireless that were publicly held and proceeded to take the company private which significantly enhanced the company's operating and financial flexibility.
Coinciding with the twentieth anniversary of Rogers' launch of wireless services, on July 1, 2005, Rogers Home Phone voice-over-cable local telephony service was introduced in the Greater Toronto Area and also successfully completed the acquisition of Call-Net Enterprises Inc. (now Rogers Telecom Holdings Inc.), a national provider of voice and data communications services.
In 2007, Rogers entered a tentative deal to purchase the A-Channel stations, CKX-TV, Access, Canadian Learning Television and SexTV: The Channel from CHUM Limited, as part of the latter company's pending takeover by CTVglobemedia. This transaction was contingent on Canadian Radio-television and Telecommunications Commission (CRTC) approval of CTVglobemedia's takeover of CHUM. However, on June 8, 2007, the CRTC approved the CTV transaction conditional on CTV divesting itself of Citytv rather than A-Channel, effectively voiding the deal. On June 12, it was announced that Rogers had made a new offer of $375 million for the Citytv stations. The transaction was approved on September 28, 2007, the same date when "Rogers Park" in Brampton, Ontario was officially opened.
On June 28, 2007, Rogers further offered to sell the two religious-licensed OMNI stations in Winnipeg and Vancouver as part of the Citytv deal, although the company stated that it intended to retain the multilingual-licensed OMNI stations. On July 7, Rogers also announced a takeover offer for Vancouver's multicultural station CHNM. The transaction was approved on March 31, 2008. In September 2007, Rogers has also applied to the CRTC to acquire 20 per cent of CablePulse 24, a local news channel in Toronto which was previously paired with Citytv (both stations were previously owned by CHUM Limited) but was retained by CTVglobemedia in the June 8 licence approval. However in early December, CTV withdrew the application and announced that Rogers Media and CTVgm had come to a deal in which Rogers waived their 20 per cent stake.
On February 13, 2008, Rogers announced a takeover offer for Aurora Cable, a cable service provider in York Region, Ontario. The sale was finalized on June 12, 2008.
Corporate governance
Current members of the board of directors of Rogers Communications are:
- Peter Godsoe, O.C - Lead Director
- Edward S. Rogers, O.C. - President and Chief Executive Officer
- Ronald Besse - President, Besseco Holdings Inc.
- Charles William David Birchall - Vice Chairman, Barrick Gold Corporation
- John H. Clappison, FCA - Company Director
- Alan D. Horn, C.A. - Chairman, Rogers Communications Inc. and President/CEO Rogers Telecommunications Limited
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