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 firstname.lastname@example.org 647-773-4032Disclaimer: 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, RotmanRogers Communications Inc.
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
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
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
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