Rogers Communications Reports Fourth Quarter 2006 Results and Issues Full Year 2007 Financial and Operating Guidance

Consolidated Revenue Grows 14.4% to $2.4 Billion and Consolidated Operating Profit Increases 46.3% to $752 Million in the Quarter;




TORONTO, Feb. 15  /PRNewswire-FirstCall/ -- Rogers Communications Inc. today announced its consolidated financial and operating results for the three and twelve months ended December 31, 2006.

  Financial highlights are as follows:
  -------------------------------------------------------------------------
  (In millions         Three months ended          Twelve months ended
   of dollars,             December 31,                 December 31,
   except per     ---------------------------------------------------------
   share amounts)    2006      2005     % Chg     2006      2005     % Chg
  -------------------------------------------------------------------------
  Operating
   revenue(1)      $2,370    $2,071      14.4   $8,838    $7,334      20.5
  Operating
   profit(2)          752       514      46.3    2,875     2,144      34.1
  Net income
   (loss)             176       (67)      n/m      622       (45)      n/m
  Net income
   (loss) per
   share(3) :
    Basic          $ 0.28    $(0.11)      n/m   $ 0.99    $(0.08)      n/m
    Diluted          0.27     (0.11)      n/m     0.97     (0.08)      n/m
  -------------------------------------------------------------------------
  (1) Certain current and prior year amounts related to equipment sales and
      cost of equipment sales have been reclassified. See the
      "Reclassification of Wireless Equipment Sales and Cost of Sales"
      section for further details.
  (2) Operating profit should not be considered as a substitute or
      alternative for operating income or net income, in each case
      determined in accordance with generally accepted accounting
      principles ("GAAP"). See the "Reconciliation of Operating Profit to
      Net Income (Loss) for the Period" section for a reconciliation of
      operating profit to operating income and net income under GAAP and
      the "Key Performance Indicators and Non-GAAP Measures" section.
  (3) Prior period per share amounts have been retroactively adjusted to
      reflect a two-for-one split of the Company's Class A Voting and
      Class B Non-Voting shares on December 29, 2006.


  Highlights of the fourth quarter of 2006 include the following:

  -  Operating revenue increased 14.4% for the quarter, with all of our
     operating units contributing to the growth, while quarterly operating
     profit grew 46.3% year-over-year, driven by growth in all operating
     units.

  -  Strong subscriber growth continued at Wireless, with quarterly net
     postpaid additions of 189,300 and net prepaid additions of 55,200.

  -  Wireless postpaid subscriber monthly churn was 1.24%, the lowest in
     Wireless' history, versus 1.57% in the fourth quarter of 2005.
     Postpaid monthly ARPU (average revenue per user) increased 6.1% from
     the fourth quarter of 2005 to $69.04, helped by a 41.6% increase in
     wireless data revenue.

  -  Successfully launched our High-Speed Downlink Packet Access ("HSDPA")
     network in the Golden Horseshoe markets of Ontario. This next
     generation broadband wireless technology, which Wireless continues to
     deploy across other major markets, is the fastest mobile wireless data
     service available in Canada.

  -  Added 95,100 cable telephony residential subscriber lines (of which
     13,100 were migrations from the circuit-switched platform) to end the
     quarter with 365,900 residential voice-over-cable telephony subscriber
     lines. The combined number of local telephony lines on both the cable
     telephony and circuit-switched platforms of Rogers Home Phone and
     Rogers Business Solutions reached 920,500.

  -  Drove basic cable subscriber gains of 10,700 versus an increase of
     approximately 8,000 in the fourth quarter of 2005. Digital cable
     households increased by 69,600 in the quarter to reach a total of
     1,134,000, while residential high-speed Internet subscribers grew by
     44,800 in the quarter to a total of 1,291,000.

  -  Concluded the final phase of a multi-staged transaction to acquire
     certain of the CLEC assets of Group Telecom/360Networks from Bell
     Canada, including approximately 3,400 route kilometres of multi-
     stranded local and regional fibre; voice and data switching
     infrastructure; and co-location, point-of-presence and hub sites in
     Ontario, Quebec, Nova Scotia, New Brunswick and Newfoundland.

  -  Gained CRTC approval for Media to acquire five Alberta Radio stations.
     The acquisition closed January 1, 2007 and brought the total number of
     radio stations owned by Rogers to 51.

  -  Announced and implemented a two-for-one split of our Class A Voting
     and Class B Non-Voting shares during the quarter, with the additional
     shares having been distributed to shareholders beginning January 5,
     2007.

  -  Cable made significant investments during the quarter on network
     enhancements, customer premise equipment, and scaleable infrastructure
     related to network capacity increases in order to accommodate future
     demand for cable, Internet and telephony products.

  -  Announced a 113% increase in our annual dividend from C$0.075 to
     C$0.16 per share (on a post split basis) during the quarter, and also
     modified our dividend distribution policy from a semi-annual to a
     quarterly basis. The first quarterly dividend at the increased rate
     was paid on January 2, 2007 to shareholders of record on December 20,
     2006.



"I am pleased with the solid financial and operating results Rogers generated in 2006 and thankful to our many dedicated employees for their hard work during the year," said Ted Rogers, President and CEO of Rogers Communications Inc. "We are fortunate to see continued healthy demand in the markets we serve and excellent responses from customers for our innovative wireless, cable, high-speed Internet and telephony products. As 2007 unfolds, our focus remains steadfastly on delivering profitable growth through innovation and disciplined execution."

This earnings release should be read in conjunction with our 2005 Annual MD&A and our 2005 Annual Audited Consolidated Financial Statements and Notes thereto, as well as our 2006 quarterly interim financial and other recent securities filings available on SEDAR at http://www.sedar.com/. As this earnings release includes forward-looking statements and assumptions, readers should carefully review the sections of this release entitled 'Caution Regarding Forward-Looking Statements, Risks and Assumptions'.

In this release, the terms "we", "us", "our", and "the Company" refer to Rogers Communications Inc. and our subsidiaries, which are reported in the following three segments:

  -  "Wireless", which refers to our wholly owned subsidiary Rogers
     Wireless Communications Inc. and its subsidiaries, including Rogers
     Wireless Inc. ("RWI") and its subsidiaries;

  -  "Cable and Telecom", which refers to our wholly owned subsidiary
     Rogers Cable Inc. and its subsidiaries; and

  -  "Media", which refers to our wholly owned subsidiary Rogers Media Inc.
     and its subsidiaries including Rogers Broadcasting, which owns Rogers
     Sportsnet, 51 radio stations, OMNI television and The Shopping
     Channel, Rogers Publishing and Rogers Sports Entertainment, which owns
     the Toronto Blue Jays and the Rogers Centre. In addition, Media holds
     ownership interests in entities involved in specialty TV content, TV
     production and broadcast sales.



"RCI" refers to the legal entity Rogers Communications Inc. excluding our subsidiaries.

Throughout this release, all amounts appear in Canadian dollars unless otherwise indicated, and percentage changes are calculated using numbers rounded to the decimal to which they appear. Prior period share and per share amounts have been retroactively adjusted to reflect a two-for-one split of our common stock in December 2006.

  SUMMARY CONSOLIDATED FINANCIAL RESULTS (Unaudited)
  -------------------------------------------------------------------------
  (In millions         Three months ended          Twelve months ended
   of dollars,             December 31,                 December 31,
   except per     ---------------------------------------------------------
   share amounts)    2006      2005     % Chg     2006      2005     % Chg
  -------------------------------------------------------------------------

  Operating revenue
    Wireless(1)    $1,257    $1,050      19.7   $4,580    $3,860      18.7

    Cable and
     Telecom
      Cable and
       Internet       505       453      11.5    1,944     1,735      12.0
      Rogers Home
       Phone           99        75      32.0      355       150     136.7
      Rogers
       Business
       Solutions      155       143       8.4      596       284     109.9
      Rogers Retail    84        91      (7.7)     310       327      (5.2)
      Corporate
       items and
       eliminations    (1)       (1)        -       (4)       (4)        -
                  ---------------------------------------------------------
                      842       761      10.6    3,201     2,492      28.5
    Media             317       300       5.7    1,210     1,097      10.3
    Corporate
     items and
     eliminations     (46)      (40)     15.0     (153)     (115)     33.0
                  ---------------------------------------------------------
  Total             2,370     2,071      14.4    8,838     7,334      20.5

  Operating
   expenses,
   including
   integration and
   Rogers Retail
   store closure
   expenses
    Wireless(1)       740       758      (2.4)   2,611     2,523       3.5

    Cable and
     Telecom
      Cable and
       Internet       287       256      12.1    1,111     1,012       9.8
      Rogers Home
       Phone           96        70      37.1      345       141     144.7
      Rogers
       Business
       Solutions      143       128      11.7      547       264     107.2
      Rogers Retail    83        88      (5.7)     303       309      (1.9)
      Integration
       costs            3         3         -        9         5      80.0
      Corporate
       items and
       eliminations    (1)       (1)        -       (4)       (4)        -
                  ---------------------------------------------------------
                      611       544      12.3    2,311     1,727      33.8
    Media             270       261       3.4    1,059       969       9.3
    Corporate
     items and
     eliminations      (3)       (6)    (50.0)     (18)      (29)    (37.9)
                  ---------------------------------------------------------
  Total             1,618     1,557       3.9    5,963     5,190      14.9

  Operating
   profit, after
   integration and
   Rogers Retail
   store closure
   expenses(2)
    Wireless(3)       517       292      77.1    1,969     1,337      47.3

    Cable and
     Telecom
      Cable and
       Internet       218       197      10.7      833       723      15.2
      Rogers Home
       Phone            3         5     (40.0)      10         9      11.1
      Rogers
       Business
       Solutions       12        15     (20.0)      49        20     145.0
      Rogers Retail     1         3     (66.7)       7        18     (61.1)
      Integration
       costs           (3)       (3)        -       (9)       (5)     80.0
                  ---------------------------------------------------------
                      231       217       6.5      890       765      16.3
    Media              47        39      20.5      151       128      18.0
    Corporate
     items and
     eliminations     (43)      (34)     26.5     (135)      (86)     57.0
                  ---------------------------------------------------------
  Total               752       514      46.3    2,875     2,144      34.1
                  ---------------------------------------------------------

  Other income and
   expense, net(4)    576       581      (0.9)   2,253     2,189       2.9
                  ---------------------------------------------------------
  Net income
   (loss)          $  176    $  (67)      n/m   $  622    $  (45)      n/m
                  ---------------------------------------------------------

  Net income (loss)
   per share(5):
    Basic          $ 0.28    $(0.11)      n/m   $ 0.99    $(0.08)      n/m
    Diluted          0.27     (0.11)      n/m     0.97     (0.08)      n/m

  Additions to
   PP&E(2)
    Wireless       $  201    $  205      (2.0)  $  684    $  585      16.9

    Cable and
     Telecom
      Cable and
       Internet       188       160      17.5      492       515      (4.5)
      Rogers Home
       Phone           71        33     115.2      193       121      59.5
      Rogers
       Business
       Solutions       48        14       n/m       98        63      55.6
      Rogers Retail     6         4      50.0       11        15     (26.7)
                  ---------------------------------------------------------
                      313       211      48.3      794       714      11.2
    Media              16        12      33.3       48        40      20.0
    Corporate(6)       24         3       n/m      186        16       n/m
                  ---------------------------------------------------------
  Total            $  554    $  431      28.5   $1,712    $1,355      26.3
                  ---------------------------------------------------------
  -------------------------------------------------------------------------
  (1) Certain current and prior year amounts related to Wireless equipment
      sales and cost of equipment sales have been reclassified. See the
      "Reclassification of Wireless Equipment Sales and Cost of Sales"
      section for further details.
  (2) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" section. Operating profit includes integration costs and
      Rogers Retail store closure expenses of $4 million and $18 million
      for the three and twelve months ended December 31, 2006,
      respectively, and $32 million and $66 million for the three and
      twelve months ended December 31, 2005, respectively.
  (3) During the three months ended December 31, 2006, certain accrued
      liabilities in Wireless were updated for new information, resulting
      in an increase to operating profit of approximately $19 million. In
      the three months ended December 31, 2005, Wireless incurred costs of
      approximately $16 million that were not incurred in the same period
      of 2006.
  (4) See the "Reconciliation of Operating Profit to Net Income (Loss) for
      the Period" section for details of these amounts.
  (5) Prior period per share amounts have been retroactively adjusted to
      reflect a two-for-one split of the Company's Class A Voting and
      Class B Non-voting shares in December 2006.
  (6) Corporate additions to PP&E for the twelve months ended December 31,
      2006 include $105 million for RCI's purchase of real estate in
      Brampton, Ontario. In addition, during the three and twelve months
      ended December 31, 2006, RCI's PP&E improvements related to the
      Brampton real estate totalled $12 million and $28 million,
      respectively.



For discussions of the results of operations of each of these segments, refer to the respective segment sections of this release.

Reconciliation of Operating Profit to Net Income (Loss) for the Period

The items listed below represent the consolidated income and expense amounts that are required to reconcile operating profit to the net income (loss) for the period as defined under Canadian GAAP. For details of these amounts on a segment-by-segment basis and for an understanding of intersegment eliminations on consolidation, the following section should be read in conjunction with tables in the Supplemental Information section entitled "Segmented Information".

  -------------------------------------------------------------------------
                       Three months ended          Twelve months ended
                           December 31,                 December 31,
  (In millions    ---------------------------------------------------------
   of dollars)       2006      2005     % Chg     2006      2005     % Chg
  -------------------------------------------------------------------------

  Operating
   profit(1)       $  752    $  514      46.3   $2,875    $2,144      34.1
  Depreciation and
   amortization      (395)     (404)     (2.2)  (1,584)   (1,489)      6.4
                  ---------------------------------------------------------
  Operating income    357       110       n/m    1,291       655      97.1
  Interest expense
   on long-term
   debt              (151)     (163)     (7.4)    (620)     (699)    (11.3)
  Foreign exchange
   gain (loss)        (39)       (4)      n/m        2        35     (94.3)
  Change in the
   fair value of
   derivative
   instruments         24         2       n/m       (4)      (25)    (84.0)
  Other income
   (expense), net      (2)      (20)    (90.0)       9        (9)      n/m
  Income tax
   reduction
   (expense)          (13)        8       n/m      (56)       (2)      n/m
                  ---------------------------------------------------------
  Net income
   (loss)          $  176    $  (67)      n/m   $  622    $  (45)      n/m
                  ---------------------------------------------------------
  -------------------------------------------------------------------------
  (1) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" section.

  Operating Income



The growth in our consolidated operating income for the three months ended December 31, 2006 as compared to the corresponding period in 2005 resulted from the higher operating profit across all of our operating units. See the section entitled "Operating Unit Review" for a detailed discussion of operating unit results.

Interest on Long-Term Debt

The reduction in interest expense for the three months ended December 31, 2006 compared to the corresponding period in 2005 is primarily due to the decrease in debt as at December 31, 2006, compared to December 31, 2005, of more than $750 million, including the impact of cross-currency interest rate exchange agreements. This decrease in debt was largely the result of the repayment at maturity in February 2006 of RCI's $75 million 10.50% Senior Notes, the repayment in June 2006 of $160 million of the 10.5% Wireless Senior Secured Notes, Wireless' July 2006 repayment of a mortgage in the amount of $22 million and aggregate net repayments under our various bank credit facilities.

Foreign Exchange Gain (Loss)

During the three months ended December 31, 2006, the Canadian dollar weakened by 5 cents versus the U.S. dollar. This resulted in a foreign exchange loss of $39 million during the three months ended December 31, 2006 primarily related to U.S. dollar-denominated long-term debt not hedged for accounting purposes. The corresponding period in 2005 reflected a foreign exchange loss of $4 million related to long-term debt not hedged for accounting purposes given a 0.48 cent weakening of the Canadian dollar in that period.

Change in Fair Value of Derivative Instruments

The change in fair value of derivative instruments in the three months ended December 31, 2006 and 2005 was primarily the result of the changes in the Canadian dollar relative to that of the U.S. dollar, as described above, and the resulting change in fair value of our cross-currency interest rate exchange agreements not accounted for as hedges.

Other Income (Expense)

Other expenses for the three months ended December 31, 2006 and 2005 were primarily associated with losses from investments, net of gains on the sale of investments, write-downs required to reflect other than temporary declines in the values of certain investments, and a loss on repayment of long-term debt.

Income Taxes

Current income tax expense has historically consisted primarily of the Canadian Federal Large Corporations Tax ("LCT"). Due to the elimination of LCT in 2006, no amount has been expensed in respect of LCT for the three month period ended December 31, 2006. We recorded a current income tax recovery of $7 million in the fourth quarter of 2006 related primarily to the reduction of certain amounts previously accrued for income taxes. We recorded net future income tax expense for the three month period ended December 31, 2006 of $20 million.

Net Income (Loss) and Net Income (Loss) Per Share

We recorded net income of $176 million for the three months ended December 31, 2006 or basic earnings per share of $0.28 (diluted - $0.27), compared to a net loss of $67 million or basic and diluted loss per share of $0.11 in the corresponding period in 2005.

  2006 PERFORMANCE AGAINST TARGETS AND 2007 GUIDANCE

  2006 Performance Against Targets



The following table sets forth the guidance ranges for selected full year financial and operating metrics that we provided for 2006, as revised during the year, versus the actual results we achieved for the year. As indicated in the table, we either met or exceeded our operating and financial targets in all categories.

  -------------------------------------------- ------------------- --------
  (In millions of
   dollars, except        Original 2006 Range     Updated from       2006
   subscribers)          (At February 9, 2006)  Original Guidance   Actual
  -------------------------------------------- ------------------- --------
  Revenue
    Wireless (network
     revenue)               $4,125 to  $4,175   $4,125 to  $4,300   $4,313
    Cable and Telecom        3,110 to   3,185    3,110 to   3,217    3,201
    Media                    1,165 to   1,205    1,165 to   1,205    1,210

  Operating profit(1)
    Wireless(2)             $1,730 to  $1,780   $1,730 to  $1,905   $1,997
    Cable and Telecom(3)       825 to     860      825 to     877      899
    Media                      115 to     120      115 to     130      151

  PP&E expenditures(4)
    Wireless                $  600 to  $  650   $  600 to  $  650   $  624
    Cable and Telecom          640 to     695      640 to     751      751

  Net subscriber additions
   (000's)
    Retail wireless
     postpaid and prepaid      525 to     575      525 to     575      610
    Basic cable                  0 to      10        0 to      10       13
    Digital households         175 to     225      175 to     225      221
    High-speed Internet        125 to     175      125 to     175      155
    Residential cable
     telephony                 200 to     250      200 to     300      318

  Rogers Telecom
   integration              $   50 to  $   65   $   50 to  $   65   $   52
  -------------------------------------------- ------------------- --------
  (1) Before Rogers Communications Inc. ("RCI") corporate expenses and
      management fees paid to RCI.
  (2) Excludes operating losses related to the Inukshuk fixed wireless
      initiative and costs associated with the integration of Fido
      Solutions Inc. ("Fido").
  (3) Excludes costs associated with the integration of Call-Net
      Enterprises Inc. ("Call-Net").
  (4) Does not include Corporate, Inukshuk or Media PP&E expenditures or
      the PP&E expenditures related to the Call-Net integration.


  Full Year 2007 Financial and Operating Guidance



The following table outlines our financial and operational guidance for the full year 2007. This information is forward-looking and should be read in conjunction with the sections below entitled 'Caution Regarding Forward- Looking Statements, Risks and Assumptions'.

  2007 Full Year Guidance Ranges

  ------------------------------------------- -------------------- --------
                                                                     2006
  (Millions of dollars, except subscribers)        2007 Range       Actual
  ------------------------------------------- -------------------- --------
  Consolidated
    Revenue                                    $9,700  to $10,000   $8,838
    Operating profit(1)                         3,250  to   3,400    2,887
    PP&E expenditures(1)                        1,625  to   1,750    1,669
    Free cash flow(2)                             800  to   1,000      543

  Revenue
    Wireless (network revenue)                 $4,900  to  $5,000   $4,313
    Cable and Telecom(A)                        3,615  to   3,700    3,201
    Media(B)                                    1,275  to   1,325    1,210

  Operating profit(3)
    Wireless(4)                                $2,250  to  $2,350   $1,997
    Cable and Telecom(A)(1)                       935  to     975      899
    Media(B)                                      150  to     160      151

  PP&E expenditures
    Wireless(C)(5)                               $675  to    $725     $624
    Cable and Telecom(A)(1)(6)                    815  to     880      751
    Media(7)                                       85  to      95       48

  Net subscriber additions (000's)
    Retail wireless postpaid and prepaid(8)       500  to     600      610
    Residential cable revenue generating
     units (RGU's)(9)                             625  to     725      666
  ------------------------------------------- -------------------- --------


  (A) Supplementary Cable and Telecom detail:
  ------------------------------------------- -------------------- --------
                                                                     2006
  Millions of dollars                              2007 Range       Actual
  ------------------------------------------- -------------------- --------

  Revenue
    Cable, Internet and Home Phone             $2,570  to  $2,600   $2,299
    Rogers Business Solutions                     560  to     600      596
    Rogers Retail                                 485  to     500      310

  Operating profit(1)
    Cable, Internet and Home Phone               $925  to    $950     $843
    Rogers Business Solutions                       5  to      15       49
    Rogers Retail                                   5  to      10        7

  PP&E expenditures(1)
    Cable, Internet and Home Phone               $665  to    $700     $657
    Rogers Business Solutions(6)                  125  to     150       83
    Rogers Retail                                  25  to      30       11
  ------------------------------------------- -------------------- --------


  (B) Supplementary Media detail:
  ------------------------------------------- -------------------- --------
                                                                     2006
  Millions of dollars                              2007 Range       Actual
  ------------------------------------------- -------------------- --------

  Revenue
    Core Media                                 $1,095  to  $1,135   $1,034
    Sports Entertainment                          180  to     190      176

  Operating profit
    Core Media                                   $175  to    $190     $167
    Sports Entertainment                          (25) to     (30)     (16)
  ------------------------------------------- -------------------- --------


  (C) Supplementary Wireless PP&E expenditures detail:
  ------------------------------------------- -------------------- --------
                                                                     2006
  Millions of dollars                              2007 Range       Actual
  ------------------------------------------- -------------------- --------

    Wireless (excluding HSDPA)(5)                $425  to    $450     $360
    HSDPA                                         250  to     275      264
  ------------------------------------------- -------------------- --------
  (1) Excludes integration related expenditures.
  (2) Free cash flow is defined as operating profit less PP&E expenditures
      and interest expense and is not a term defined under Canadian GAAP.
  (3) Before management fees paid to RCI in 2006.
  (4) Excludes operating losses related to the Inukshuk fixed wireless
      initiative estimated to be $35 million in 2007.
  (5) Excludes PP&E expenditures related to Inukshuk of approximately
      $25 million in 2007.
  (6) Rogers Business Solutions PP&E excludes integration costs estimated
      to be $25 million to $30 million in 2007.
  (7) The increase in Media PP&E primarily reflects the relocation and
      construction of new studio facilities for Rogers SportsNet.
  (8) Wireless subscriber net additions exclude any potential subscriber
      adjustments associated with the planned TDMA/analog network turndown.
  (9) Residential cable RGU's are comprised of basic cable subscribers,
      digital cable households, residential high-speed Internet subscribers
      and residential cable and circuit switched telephony subscribers.
      Includes approximately 75,000 migrations from the circuit-switched
      telephony platform to the cable telephony platform.




The 2007 guidance for Wireless, Cable and Telecom, and Media reflect the impact of the following intercompany changes and transactions, which have no impact on consolidated results:

Effective January 2007, the Rogers Video segment of Cable and Telecom acquired the approximately 170 Wireless-owned retail locations. This segment, now known as Rogers Retail, will provide our customers with a single direct retail channel featuring all of our wireless and cable products and services. The combined entity will continue to be a segment of Cable and Telecom. In 2007, this will have the impact of increasing revenue and expenses of Rogers Retail by approximately $175 million.

In late December 2006, Wireless transferred the Rogers Campus (land and buildings) at fair market value to RCI. The Rogers Campus is comprised of the properties at 333 Bloor Street East and One Mount Pleasant Road in Toronto, Ontario. In early January 2007, Wireless, Cable and Telecom, and Media transferred certain land and buildings at fair market value to RCI. As a result of these transfers, it is expected that net rent expense for each of Wireless, Cable and Telecom, and Media will increase in 2007 by approximately $16 million, $6 million, and $3 million, respectively.

Effective December 31, 2006, we terminated the management fee arrangements which had previously been in place between RCI and each of Wireless, Cable and Telecom, and Media. Management fees will no longer be paid by Wireless, Cable and Telecom, or Media to RCI. Such fees paid by the three segments to RCI totaled approximately $93 million in 2006.

BASIS OF PRO FORMA INFORMATION

Certain financial and operating data information in this release has been prepared on a pro forma basis as if the acquisition of Call-Net Enterprises Inc. ("Call-Net"), as described in our 2005 Annual MD&A, had occurred on January 1, 2004. Such information is based on our historical financial statements, the historical financial statements of Call-Net and the accounting for this business combination.

Although we believe this presentation provides certain relevant contextual and comparative information for existing operations, the unaudited pro forma consolidated financial and operating data presented in this document is for illustrative purposes only and does not purport to represent what the results of operations actually would have been if the acquisition of Call-Net had occurred on January 1, 2004, nor does it purport to project the results of operations for any future period.

This pro forma information reflects, among other things, adjustments to Call-Net's historically reported financial information to conform to our accounting policies and the impacts of purchase accounting. The pro forma adjustments are based upon certain estimates and assumptions that we believe are reasonable. Accounting policies used in the preparation of these statements are those disclosed in our 2005 Annual Audited Consolidated Financial Statements and Notes thereto.

Certain tables in the "Cable and Telecom" section present selected unaudited pro forma information.

  OPERATING UNIT REVIEW

  WIRELESS
  --------

  Reclassification of Wireless Equipment Sales and Cost of Sales



During 2006, the Company determined that certain transactions related to the sale of wireless equipment were historically recorded as cost of equipment sales rather than as a reduction of equipment revenue. The Company determined these should be reflected as a reduction of equipment revenue and has reclassified current and prior year figures to reflect this accounting, resulting in a $61 million and $206 million reduction in both equipment revenue and cost of equipment sales in the three and twelve months ended December 31, 2006, respectively. This also resulted in a $48 million and $147 million reduction in both equipment revenue and cost of equipment sales in the three and twelve months ended December 31, 2005, respectively. As a result of this reclassification, there was no change to previously reported net income (loss) or operating income. Also, there is no impact on reported cash flow, the balance sheet, or any Wireless key performance indicators, including network revenue, ARPU, cost of acquisition, average monthly operating expense per user or operating profit margin as a percentage of network revenue.

Included in the supplemental information section is a schedule which presents reclassified Wireless results for each quarter of 2005 and 2006 conformed to the current presentation. See "Wireless 2006 and 2005 Quarterly Summary."

  Wireless Financial Results

  -------------------------------------------------------------------------
                       Three months ended          Twelve months ended
  (In millions             December 31,                 December 31,
   of dollars,    ---------------------------------------------------------
   except margin)    2006      2005     % Chg     2006      2005     % Chg
  -------------------------------------------------------------------------

  Operating
   revenue
    Postpaid       $1,095    $  917      19.4   $4,084    $3,384      20.7
    Prepaid            61        53      15.1      214       210       1.9
    One-way
     messaging          4         5     (20.0)      15        20     (25.0)
                  ---------------------------------------------------------
    Network
     revenue        1,160       975      19.0    4,313     3,614      19.3
    Equipment
     sales(1)          97        75      29.3      267       246       8.5
                  ---------------------------------------------------------
  Total operating
   revenue          1,257     1,050      19.7    4,580     3,860      18.7
                  ---------------------------------------------------------

  Operating
   expenses
    Cost of
     equipment
     sales(1)      $  189    $  195      (3.1)   $ 628    $  625       0.5
    Sales and
     marketing
     expenses         186       194      (4.1)     604       604         -
    Operating,
     general and
     administrative
     expenses         365       344       6.1    1,376     1,240      11.0
    Integration
     expenses(2)        -        25       n/m        3        54     (94.4)
                  ---------------------------------------------------------
  Total operating
   expenses           740       758      (2.4)   2,611     2,523       3.5

                  ---------------------------------------------------------
  Operating
   profit(3)(4)(5) $  517    $  292      77.1   $1,969    $1,337      47.3
                  ---------------------------------------------------------

  Operating profit
   margin as %
   of network
   revenue(5)        44.6%     30.0%              45.7%     37.0%

  Additions to
   property, plant
   and equipment
   ("PP&E")(5)     $  201    $   205     (2.0)  $  684    $  585      16.9

  -------------------------------------------------------------------------
  (1) Certain current and prior year amounts related to equipment sales and
      cost of equipment sales have been reclassified. See the
      "Reclassification of Wireless Equipment Sales and Cost of Sales"
      section.
  (2) Expenses incurred relate to the integration of the operations of
      Fido.
  (3) During the three months ended December 31, 2006, certain accrued
      liabilities in Wireless were updated for new information, resulting
      in an increase to operating profit of approximately $19 million. In
      the three months ended December 31, 2005, Wireless incurred costs of
      approximately $16 million that were not incurred in the same period
      of 2006.
  (4) Operating profit includes a loss of $10 million and $25 million for
      the three and twelve months ended December 31, 2006, respectively and
      $1 million and $5 million for the three and twelve months ended
      December 31, 2005, respectively, related to the Inukshuk fixed
      wireless initiative.
  (5) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" section.


  -------------------------------------------------------------------------
  (Subscriber statistics in thousands,      Three Months Ended December 31,
   except ARPU, churn and usage)        2006      2005       Chg     % Chg
  -------------------------------------------------------------------------

  Postpaid
    Gross additions                    384.5     422.3     (37.8)     (8.9)
    Net additions                      189.3     202.6     (13.3)     (6.6)
    Total postpaid retail
     subscribers
    Average monthly revenue per
     user ("ARPU")(1)               $  69.04  $  65.05  $   3.99       6.1
    Average monthly usage (minutes)      556       536        20       3.7
    Monthly churn                       1.24%     1.57%    (0.33%)   (21.0)
  Prepaid
    Gross additions                    181.1     160.3      20.8      13.0
    Net additions(2)                    55.2      13.7      41.5       n/m
    Total prepaid retail
     subscribers
    ARPU(1)                         $  15.15  $  13.30  $   1.85      13.9
    Monthly churn(2)                    3.14%     3.68%    (0.54%)   (14.7)

  -------------------------------------------------------------------------

  -------------------------------------------------------------------------
  (Subscriber statistics in thousands,     Twelve Months Ended December 31,
   except ARPU, churn and usage)        2006      2005       Chg     % Chg
  -------------------------------------------------------------------------

  Postpaid
    Gross additions                  1,375.2   1,453.5     (78.3)     (5.4)
    Net additions                      580.1     603.1     (23.0)     (3.8)
    Total postpaid retail
     subscribers                     5,398.3   4,818.2     580.1      12.0
    Average monthly revenue per
     user ("ARPU")(1)               $  67.27  $  63.56  $   3.71       5.8
    Average monthly usage (minutes)      545       503        42       8.3
    Monthly churn                       1.32%     1.61%    (0.29%)   (18.0)
  Prepaid
    Gross additions                    615.4     576.5      38.9       6.7
    Net additions(2)                    30.2      15.7      14.5      92.4
    Total prepaid retail
     subscribers                     1,380.0   1,349.8      30.2       2.2
    ARPU(1)                         $  13.49  $  13.20  $   0.29       2.2
    Monthly churn(2)                    3.70%     3.54%     0.16%      4.5

  -------------------------------------------------------------------------
  (1) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" section.
  (2) Effective November 9, 2004, the deactivation of prepaid subscribers
      acquired from Fido is recognized after 180 days of no usage to
      conform to the Wireless prepaid churn definition. This had the impact
      of decreasing prepaid subscriber net losses by approximately 12,000
      in the twelve months ended December 31, 2005 and reducing prepaid
      churn by 0.10% for the twelve months ended December 31, 2005. There
      was no impact in the three months ended December 31, 2005 or any
      period in 2006.

  Wireless Network Revenue



The increase in network revenue for the three months ended December 31, 2006 compared to the prior year period was driven by the continued growth of Wireless' postpaid subscriber base and improvements in postpaid average monthly revenue per user ("ARPU"). The year-over-year increase in postpaid ARPU in the fourth quarter of 2006 reflects the combination of higher data revenues, as well as continued growth in optional voice services, long distance and roaming revenue.

Our success in the continued reduction in postpaid churn largely reflects proactive and targeted customer retention activities, including a continued trend towards having a greater portion of our subscriber base on longer term contracts, as well as the increased network density and coverage quality resulting from the completion of the integration of the Fido GSM network in mid-2005. We continue to have an opportunity for improvement in the area of prepaid churn. The decrease in prepaid churn in the fourth quarter of 2006 was largely due to increased retention efforts.

During the three months ended December 31, 2006, wireless data revenue increased by 41.6% over the corresponding period in 2005 and totalled $130 million. This increase in data revenue reflects the continued rapid growth of text and multimedia messaging services, wireless Internet access, BlackBerry devices, downloadable ring tones, music and games, and other wireless data services and applications. For the fourth quarter of 2006, data revenue represented 11.2% of total network revenue compared to 9.4% in the corresponding period last year.

Wireless Equipment Sales

The year-over-year increase in revenue from equipment sales, including activation fees and net of equipment subsidies, reflects the increased volume of handset upgrades associated with subscriber retention programs combined with the generally higher prices of handsets and devices.

  Wireless Operating Expenses

  -------------------------------------------------------------------------
  (In millions
   of dollars,         Three months ended          Twelve months ended
   except per              December 31,                 December 31,
   subscriber     ---------------------------------------------------------
   statistics)       2006      2005     % Chg     2006      2005     % Chg
  -------------------------------------------------------------------------

  Operating
   expenses
    Cost of
     equipment
     sales(1)      $  189    $  195      (3.1)  $  628    $  625       0.5
    Sales and
     marketing
     expenses         186       194      (4.1)     604       604         -
    Operating,
     general and
     administrative
     expenses         365       344       6.1    1,376     1,240      11.0
    Integration
     expenses (2)       -        25       n/m        3        54     (94.4)
                  ---------------------------------------------------------
  Total operating
   expenses        $  740    $  758      (2.4)  $2,611    $2,523       3.5
                  ---------------------------------------------------------

  Average monthly
   operating
   expense per
   subscriber
   before sales
   and marketing
   expenses(3)     $19.70    $23.26     (15.3)  $19.69    $20.78      (5.2)

  Sales and
   marketing costs
   per gross
   subscriber
   addition(3)     $  427    $  425       0.5   $  399    $  388       2.8

  -------------------------------------------------------------------------
  (1) Certain current and prior year amounts related to equipment sales and
      cost of equipment sales have been reclassified. See the
      "Reclassification of Wireless Equipment Sales and Cost of Sales"
      section.
  (2) Expenses incurred related to the integration of the operations of
      Fido.
  (3) As defined. See the "Key Performance Indicator and Non-GAAP Measures"
      section. As calculated in the "Supplementary Information" section.




Cost of equipment sales remained relatively unchanged for the three months ended December 31, 2006 compared to the corresponding period of the prior year.

Sales and marketing expenses in the three months ended December 31, 2006 were slightly lower than the corresponding period in 2005 as Wireless' gross subscriber additions declined. Sales and marketing costs per gross subscriber addition were relatively unchanged in the three months ended December 31, 2006 at $427 compared to $425 in 2005.

The increased operating, general and administrative expenses were primarily due to the increases in retention spending and costs to support data and roaming services, partially offset by savings related to operating and scale efficiencies across various functions.

Retention spending has increased due to higher volumes of handset upgrades compared to the fourth quarter of 2005. Retention spending, on both an absolute and a per subscriber basis, is expected to grow as wireless market penetration in Canada deepens and wireless number portability ("WNP") becomes available in March 2007. (See the section entitled "Caution Regarding Forward- Looking Statements, Risks and Assumptions" below.)

The decrease in average monthly operating expense per subscriber, excluding sales and marketing expenses, is primarily due to operating and scale efficiencies across various functions.

Wireless Operating Profit

The strong year-over-year growth in operating profit was largely the result of the growth in network revenue and the impact of certain changes in estimates related to accrued liabilities made in the fourth quarter of 2006 as well as costs incurred in the fourth quarter of 2005 that were not incurred in the same period of 2006, as previously noted. As a result, Wireless' operating profit margins, as a percentage of network revenue, increased to 44.6% for the three months ended December 31, 2006, compared to 30.0% in the corresponding period of the prior year.

The operating loss related to the fixed wireless initiative, which includes the Inukshuk joint venture and Wireless' internal spending on the initiative, is included in Wireless' operating profit. During the three months ended December 31, 2006, the fixed wireless initiative recorded an operating loss of $10 million, compared to an operating loss of $1 million for the three months ended December 31, 2005.

Wireless Additions to Property, Plant and Equipment

Wireless additions to property, plant and equipment ("PP&E") are classified into the following categories:

  -------------------------------------------------------------------------
                       Three months ended          Twelve months ended
                           December 31,                 December 31,
  (In millions    ---------------------------------------------------------
   of dollars)       2006      2005     % Chg     2006      2005     % Chg
  -------------------------------------------------------------------------

  Additions to PP&E
    Network -
     capacity      $   14    $   82     (82.9)  $  159    $  286     (44.4)
    Network - other    42        54     (22.2)      89       117     (23.9)
    HSDPA              82         -       n/m      264         -       n/m
    Inukshuk           13         -       n/m       60         -       n/m
    Information
     technology
     and other         50        38      31.6      112        90      24.4
    Integration
     of Fido            -        31       n/m        -        92       n/m
                  ---------------------------------------------------------
  Total additions
   to PP&E         $  201    $  205      (2.0)  $  684    $  585      16.9
                  ---------------------------------------------------------
  -------------------------------------------------------------------------



The $201 million of additions to PP&E for the three months ended December 31, 2006 reflects spending on non-capacity network and technology enhancements, as well as spending on the deployment of our next generation HSDPA network.

Recent Wireless Development

In January 2007, we announced that Wireless will turn down its TDMA and analog networks effective May 31, 2007. We are offering to migrate the remaining customers on these older networks to our more advanced GSM network to enable these customers to take advantage of the superior coverage and signal quality.

  CABLE AND TELECOM
  -----------------

  Cable and Telecom Financial and Operating Results

  ----------------------------------------- -------------------------------
                        Three Months Ended             Twelve Months Ended
                               December 31,                    December 31,

                             2005    % Chg           2005
                            Actual  Actual          Actual   2005    % Chg
  (In millions of           Reclas- Reclas-         Reclas-   Pro     Pro
   dollars, except   2006   sified  sified   2006   sified   Forma   Forma
   margin)          Actual    (4)     (4)   Actual    (4)     (5)     (5)
  ----------------------------------------- -------------------------------

  Operating revenue
    Cable           $  367  $  336     9.2  $1,421  $1,299  $1,299     9.4
    Internet           138     117    17.9     523     436     441    18.6
    Rogers Home
     Phone              99      75    32.0     355     150     300    18.3
    Rogers Business
     Solutions         155     143     8.4     596     284     562     6.0
    Rogers Retail       84      91    (7.7)    310     327     327    (5.2)
    Intercompany
     eliminations       (1)     (1)      -      (4)     (4)     (4)      -
                    ----------------------- -------------------------------
  Total operating
   revenue             842     761    10.6   3,201   2,492   2,925     9.4
                    ----------------------- -------------------------------

  Operating expenses
    Cable and
     Internet          287     256    12.1   1,111   1,012   1,015     9.5
    Rogers Home
     Phone              96      70    37.1     345     141     263    31.2
    Rogers Business
     Solutions         143     128    11.7     547     264     508     7.7
    Rogers Retail(1)    83      88    (5.7)    303     309     309    (1.9)
    Integration
     costs(2)            3       3       -       9       5      19   (52.6)
    Intercompany
     eliminations       (1)     (1)      -      (4)     (4)     (4)      -
                    ----------------------- -------------------------------
  Total operating
   expense             611     544    12.3   2,311   1,727   2,110     9.5

  Operating profit
   (loss)(3)
    Cable and
     Internet          218     197    10.7     833     723     725    14.9
    Rogers Home
     Phone               3       5   (40.0)     10       9      37   (73.0)
    Rogers Business
     Solutions          12      15   (20.0)     49      20      54    (9.3)
    Rogers Retail(1)     1       3   (66.7)      7      18      18   (61.1)
    Integration
     costs(2)           (3)     (3)      -      (9)     (5)    (19)  (52.6)
                    ----------------------- -------------------------------
  Total operating
   profit           $  231  $  217     6.5  $  890  $  765  $  815     9.2
                    ----------------------- -------------------------------

  Operating profit
   margin(3)
    Cable and
     Internet         43.2%   43.5%           42.8%   41.7%   41.7%
    Rogers Home
     Phone             3.0%    6.7%            2.8%    6.0%   12.3%
    Rogers Business
     Solutions         7.7%   10.5%            8.2%    7.0%    9.6%
    Rogers Retail      1.2%    3.3%            2.3%    5.5%    5.5%

  Additions to
   PP&E(3)
    Cable and
     Internet       $  188  $  160    17.5  $  492  $  515  $  515    (4.5)
    Rogers Home
     Phone              71      33   115.2     193     121     127    52.0
    Rogers Business
     Solutions          48      14     n/m      98      63      85    15.3
    Rogers Retail        6       4    50.0      11      15      15   (26.7)
                    ----------------------- -------------------------------
  Total additions
   to PP&E          $  313  $  211    48.3  $  794  $  714  $  742     7.0
                    ----------------------- -------------------------------
  ----------------------------------------- -------------------------------
  (1) Rogers Retail operating expenses for the three and twelve months
      ended December 31, 2006 include a charge of $1 million and
      $6 million, respectively, related to the closure of 21 stores in the
      first quarter of 2006.
  (2) Integration costs incurred relate to the integration of the
      operations of Call-Net.
  (3) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" and "Supplementary Information" sections.
  (4) Certain prior year amounts have been reclassified to conform to the
      current year presentation.
  (5) See the "Basis of Pro Forma Information" section for a discussion of
      considerations in the preparation of this pro forma information.




Total operating revenue for the three months ended December 31, 2006 increased $81 million or 10.6%, from the corresponding period in 2005, and total operating profit for the three months ended December 31, 2006 increased $14 million, or 6.5% from the corresponding period of the prior year, to $231 million. See the following business unit discussions for a detailed discussion of operating results.

  CABLE AND INTERNET

  Cable and Internet Financial and Operating Results

  -------------------------------------------- ----------------------------
                       Three months ended          Twelve months ended
                           December 31,                 December 31,
                  ---------------------------- ----------------------------
                             2005     % Chg               2005     % Chg
  (In millions              Actual    Actual             Actual    Actual
   of dollars,      2006    Reclas-   Reclas-    2006    Reclas-   Reclas-
   except margin)  Actual  sified(2) sified(2)  Actual  sified(2) sified(2)
  -------------------------------------------- ----------------------------

  Operating revenue
    Cable          $  367    $  336       9.2   $1,421    $1,299       9.4
    Internet          138       117      17.9      523       436      20.0
                  ---------------------------- ----------------------------
  Total               505       453      11.5    1,944     1,735      12.0

  Operating expenses
    Sales and
     marketing
     expenses          27        27         -      123       123         -
    Operating,
     general and
     administrative
     expenses         260       229      13.5      988       889      11.1
                  ---------------------------- ----------------------------
  Total               287       256      12.1    1,111     1,012       9.8

                  ---------------------------- ----------------------------
  Operating
   profit(1)       $  218    $  197      10.7   $  833    $  723      15.2
                  ---------------------------- ----------------------------
  Operating profit
   margin(1)         43.2%     43.5%              42.8%     41.7%
                  ---------------------------- ----------------------------
  -------------------------------------------- ----------------------------
  (1) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" and "Supplementary Information" sections.
  (2) Certain prior year amounts have been reclassified to conform with the
      current year presentation.


  -------------------------------------------- ----------------------------
                       Three months ended          Twelve months ended
  (Subscriber              December 31,                 December 31,
   statistics in  ---------------------------- ----------------------------
   thousands,       2006     2005                2006      2005
   except ARPU)    Actual   Actual     Change   Actual    Actual    Change
  -------------------------------------------- ----------------------------

  Cable homes
   passed                                      3,480.8   3,387.5      93.3

  Basic cable,
   net gain(1)       10.7       8.0       2.7     13.3       9.2       4.1
  Basic cable
   subscribers                                 2,277.1   2,263.8      13.3
  Core cable
   ARPU(2)         $53.83    $49.54    $ 4.29   $52.37    $48.09    $ 4.28

  Residential
   high-speed
   Internet, net
   additions(1)      44.8      59.9     (15.1)   154.8     205.0     (50.2)
  Residential
   high-speed
   Internet
   subscribers(3)                              1,291.0   1,136.2     154.8
  Internet
   ARPU(1)(2)      $35.82    $34.48    $ 1.34   $36.02    $35.04    $ 0.98

  Digital
   households, net
   additions(1)      69.6      73.2      (3.6)   220.7     237.8     (17.1)
  Digital
   households                                  1,134.0     913.3     220.7

  -------------------------------------------- ----------------------------
  (1) Effective August 2005, voluntarily deactivating cable and Internet
      subscribers are required to continue service for 30 days from the
      date termination is requested. This continued service period, which
      is consistent with the subscriber agreement terms and conditions, had
      the impact of decreasing basic cable, Internet and digital household
      subscriber net additions by approximately 7,200, 2,700 and 1,800,
      respectively, in the three months ended December 31, 2005 and
      increasing basic cable, Internet and digital household subscriber net
      additions by approximately 9,500, 5,200 and 3,800, respectively, in
      the twelve months ended December 31, 2005.
  (2) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" and "Supplementary Information" sections.
  (3) Residential high-speed Internet subscribers do not include
      residential ADSL and fixed wireless subscribers. The prior year
      high-speed Internet subscriber base was reduced by approximately
      8,900 to reclassify non-residential customers into the Rogers
      Business Solutions segment.


  Cable Revenue



The increase in Cable revenue for the three months ended December 31, 2006 reflects price increases implemented in early 2006, the growth in basic subscribers and the growing penetration of our digital products. The price increases on service offerings effective March 2006 contributed to the cable revenue growth by approximately $15 million for the three months ended December 31, 2006. The remaining increase in revenue of $16 million for the three months ended December 31, 2006 is related mainly to the impact of the growth in basic and digital subscribers.

The basic subscriber base of nearly 2.3 million increased by 10,700 in the three months ended December 31, 2006. The digital subscriber base grew by 24.2% between December 31, 2005 and December 31, 2006 to over 1.1 million households. This represents a 49.8% penetration of basic cable customers. The demand for our high-definition and personal video recorder digital equipment were contributors to the growth in our digital subscriber base of 69,600 households in the three months ended December 31, 2006.

Internet (Residential) Revenue

The increases in Internet revenue for the three months ended December 31, 2006 from the corresponding period in 2005 reflects primarily the 13.6% year- over-year increase in the number of Internet subscribers and certain price increases for our Internet offerings. The price increases on Internet offerings, effective March 2006, contributed to the Internet revenue growth by approximately $6 million for the three months ended December 31, 2006. The remaining increase in revenue of $15 million for the three months ended December 31, 2006 is related mainly to the impact of the growth in subscribers.

With the residential high-speed Internet subscriber base now at approximately 1.3 million, Cable has a 37.1% penetration of high-speed Internet service as a percentage of homes passed by its cable networks.

Cable and Internet Operating Expenses and Operating Profit

The fourth quarter marketing expenses were at a level consistent with the corresponding period of the prior year. The increases in operating, general and administrative costs for the three months ended December 31, 2006 compared to the corresponding period of the prior year was driven by the substantial increase in digital cable and Internet penetration resulting in higher costs associated with programming content, engineering and network operations, customer care, technical service and administration associated with the support of the larger subscriber bases.

The Cable and Internet operating profit for the three months ended December 31, 2006 increased from the corresponding period in 2005 reflecting the growth in revenue and relatively consistent operating profit margin percentages.

  ROGERS HOME PHONE

  Rogers Home Phone Financial and Operating Results

  -------------------------------------------- ----------------------------
                       Three months ended          Twelve months ended
                           December 31,                 December 31,
                  ---------------------------- ----------------------------
                             2005     % Chg
  (In millions              Actual    Actual               2005     % Chg
   of dollars,      2006    Reclas-   Reclas-    2006      Pro       Pro
   except margin)  Actual  sified(3) sified(3)  Actual   Forma(2)  Forma(2)
  -------------------------------------------- ----------------------------

  Operating
   revenue         $   99    $   75      32.0   $  355    $  300      18.3

  Operating expenses
    Sales and
     marketing
     expenses          30        13     130.8       96        45     113.3
    Operating,
     general and
     administrative
     expenses          66        57      15.8      249       218      14.2
                  ---------------------------- ----------------------------
  Total operating
   expenses            96        70      37.1      345       263      31.2

                  ---------------------------- ----------------------------
  Operating
   profit(1)       $    3    $    5     (40.0)  $   10    $   37     (73.0)
                  ---------------------------- ----------------------------
  Operating profit
   margin(1)          3.0%     6.7%         -      2.8%     12.3%        -
                  ---------------------------- ----------------------------

  -------------------------------------------- ----------------------------
  (1) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" and "Supplementary Information" sections.
  (2) See the "Basis of Pro Forma Information" section for a discussion of
      considerations in the preparation of this pro forma information.
  (3) Certain prior year amounts have been reclassified to conform to the
      current year presentation.

  -------------------------------------------- ----------------------------
                       Three months ended          Twelve months ended
                           December 31,                 December 31,
                  ---------------------------- ----------------------------

  (Subscriber                                             2005       Chg
   statistics in    2006      2005       Chg     2006      Pro       Pro
   thousands)      Actual    Actual    Actual   Actual   Forma(2)  Forma(2)
  -------------------------------------------- ----------------------------

  Cable telephony
   subscriber lines
    Net additions(1) 95.1      29.8      65.3    318.0      47.9     270.1
    Total cable
     telephony
     subscriber
     lines                                       365.9      47.9     318.0

  Circuit-switched
   subscriber lines
    Net additions
     (losses and
     migrations)(1)  (8.4)     26.0     (34.4)   (41.2)     79.8    (121.0)
    Total circuit
     -switched
     subscriber
     lines                                       349.6     390.8     (41.2)

  Total residential
   telephony
   subscriber
   lines                                         715.5     438.7     276.8

  -------------------------------------------- ----------------------------
  (1) Includes approximately 13,100 and 36,700 migrations from circuit-
      switched to cable telephony for the three and twelve months ended
      December 31, 2006, respectively.
  (2) See the "Basis of Pro Forma Information" section for a discussion of
      considerations in the preparation of this pro forma information.


  Rogers Home Phone Revenue



The growth in Rogers Home Phone revenue for the three months ended December 31, 2006 compared to the corresponding period in 2005 is mainly a result of incremental revenues from voice-over-cable telephony service of approximately $27 million. This service, which was launched in July 2005, added 95,100 net new subscriber lines in the three month period ended December 31, 2006. Partially offsetting this increase was a decline in the number of circuit-switched local lines of 8,400 for the three months ended December 31, 2006, as a result of the migration of 13,100 lines from the circuit-switched to the cable telephony platform within our cable territory in the period. Circuit-switched revenue decreased by $1 million in the three months ended December 31, 2006 compared to the corresponding period of the prior year due to a lower number of lines in the current quarter compared to last year.

Partially offsetting the growth of the Rogers Home Phone local service revenue was a decline of approximately $2 million in long distance revenue for the three months ended December 31, 2006, reflecting ongoing declines in long distance only customers, pricing and usage.

Rogers Home Phone Operating Expenses and Operating Profit

The significant growth and expansion of both operations and sales and marketing associated with the launch of the cable telephony service and overall increase in subscribers drove the increases in operating expenses of $26 million for the three months ended December 31, 2006.

The year-over-year decreases in both the Rogers Home Phone operating profit and operating profit margins for the three months ended December 31, 2006 primarily reflect the additional costs associated with the scaling and rapid growth of our cable telephony service. Investment is being made in the awareness of the product, customer acquisition and increased capacity to install.

  ROGERS BUSINESS SOLUTIONS

  Rogers Business Solutions Financial and Operating Results

  -------------------------------------------- ----------------------------
                       Three months ended          Twelve months ended
                           December 31,                 December 31,
                  ---------------------------- ----------------------------
                             2005     % Chg
  (In millions              Actual    Actual               2005     % Chg
   of dollars,      2006    Reclas-   Reclas-    2006      Pro       Pro
   except margin)  Actual  sified(3) sified(3)  Actual   Forma(2)  Forma(2)
  -------------------------------------------- ----------------------------

  Operating
   revenue         $  155    $  143       8.4   $  596    $  562       6.0

  Operating expenses
    Sales and
     marketing
     expenses          19        19         -       70        71      (1.4)
    Operating,
     general and
     administrative
     expenses         124       109      13.8      477       437       9.2
                  ---------------------------- ----------------------------
  Total operating
   expenses           143       128      11.7      547       508       7.7

                  ---------------------------- ----------------------------
  Operating
   profit(1)       $   12    $   15     (20.0)  $   49    $   54      (9.3)
                  ---------------------------- ----------------------------
  Operating profit
   margin(1)          7.7%     10.5%               8.2%      9.6%
                  ---------------------------- ----------------------------
  -------------------------------------------- ----------------------------
  (1) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" and "Supplementary Information" sections.
  (2) See "Basis of Pro Forma Information" section for discussion of
      considerations in the preparation of this pro forma information.
  (3) Certain prior year amounts have been reclassified to conform to the
      current year presentation.


  -------------------------------------------- ----------------------------
                       Three months ended          Twelve months ended
                           December 31,                 December 31,
                  ---------------------------- ----------------------------
  (Subscriber                                             2005       Chg
   statistics in    2006      2005       Chg     2006      Pro       Pro
   thousands)      Actual    Actual    Actual   Actual   Forma(1)  Forma(1)
  -------------------------------------------- ----------------------------

  Local line
   equivalents(1)
    Net additions    10.6       3.3      7.3      33.4      17.5      15.9
    Total local
     line
     equivalents                                 205.0     171.6      33.4

  Broadband data
   circuits(2)
    Net additions     2.3       3.0      (0.7)     9.5       6.2       3.3
    Total broadband
     data circuits                                31.0      21.5       9.5

  -------------------------------------------- ----------------------------
  (1) Local line equivalents include individual voice lines plus Primary
      Rate Interfaces ("PRIs") at a factor of 23 voice lines each and
      includes both wholesale and retail customers.
  (2) Broadband data circuits are those customer locations accessed by data
      networking technologies including DOCSIS, DSL, E10/100/1000, OC 3/12
      and DS 1/3. The subscriber statistics for prior periods have
      been restated to include wholesale customers.


  Rogers Business Solutions Revenue



The increase in Rogers Business Solutions revenue reflects growth in each of the data, local and long distance components of revenue. During the three months ended December 31, 2006, data revenues grew by $4 million or 8%, local services grew by $3 million or 13% and long distance grew by $5 million or 8% compared to the corresponding period of 2005.

Rogers Business Solutions ended the quarter with 205,000 local line equivalents and 31,000 broadband data circuits in service at December 31, 2006, representing year-over-year growth rates of 19.5% and 44.2%, respectively.

The increase in long distance revenue resulted from an increase in minute volumes of 10% for the three months ended December 31, 2006, all as a result of the intercompany sale of long distance to Wireless. The volume increases were partially offset by the ongoing declines in average revenue per minute, which decreased 2% for the three months ended December 31, 2006.

The increase in local and data revenues was due to the net increase in local line equivalents and broadband data circuits, respectively. Rogers Business Solutions continues to focus on selling local and data products, especially IP-enabled solutions, thereby decreasing its reliance on long distance revenues. The combination of local and data revenue represented 56.1% of total revenue for the three months ended December 31, 2006.

Rogers Business Solutions Operating Expenses and Operating Profit

Carrier charges, which are included in operating, general and administrative expenses, increased by $14 million to $93 million for the three months ended December 31, 2006 and represented 60.0% of revenue in the three months ended December 31, 2006, compared to 55.2% of revenue in the corresponding period of 2005. The net increase in the quarter is the result of product mix changes and market pricing pressures.

Other operating, general and administrative expenses for the three months ended December 31, 2006 remained consistent with the corresponding period of 2005.

Primarily due to the higher carrier charges, Rogers Business Solutions margins decreased to 7.7% for the three months ended December 31, 2006, compared to 10.5% for the corresponding period in 2005.

  ROGERS RETAIL (Previously Rogers Video)

  Rogers Retail Financial Results

  -------------------------------------------- ----------------------------
                       Three months ended          Twelve months ended
                           December 31,                 December 31,
                  ---------------------------- ----------------------------
  (In millions
   of dollars,      2006      2005               2006      2005
   except margin)  Actual     Actual   % Chg    Actual    Actual     % Chg
  -------------------------------------------- ----------------------------

  Operating
   revenue         $   84    $   91      (7.7)  $  310    $  327      (5.2)

  Operating
   expenses(1)         83        88      (5.7)     303       309      (1.9)
                  ---------------------------- ----------------------------

  Operating
   profit(2)       $    1    $    3     (66.7)  $    7    $   18     (61.1)
                  ---------------------------- ----------------------------
  Operating profit
   margin(2)          1.2%      3.3%               2.3%      5.5%
                  ---------------------------- ----------------------------
  -------------------------------------------- ----------------------------
  (1) Operating expenses for the three and twelve months ended December 31,
      2006 include a charge of $1 and $6 million, respectively, related to
      the closure of 21 stores in the first quarter of 2006.
  (2) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" and "Supplementary Information" sections.
  (3) During January 2007, the Video store segment of Cable and Telecom
      acquired the approximately 170 Wireless-owned retail locations. This
      segment is now referred to as Rogers Retail and will remain a segment
      of Cable and Telecom.


  Rogers Retail Revenue



The decline in revenue at Rogers Retail was primarily due to lower video rental and sales revenue. Initiatives were introduced to increase customers' spending, which resulted in dollars per transaction increasing 8.4% in the three months ended December 31, 2006 compared to the same period last year; however, same store customer transactions decreased 6.6% compared to the corresponding period in 2005 due to a decrease in total visits. As a result, same store revenue increased 1.2% for the three months ended December 31, 2006 compared to the corresponding period of the prior year. Rogers Retail has recently taken additional steps with respect to its pricing and late-fee structures aimed at reversing the trend of lower same store customer transactions and revenue.

Rogers Retail Operating Expenses and Operating Profit

The decline in Rogers Retail operating profit relates primarily to the decline in revenue and charges of approximately $1 million in the three months ended December 31, 2006 associated with the closing of 21 stores in the first quarter of 2006.

CABLE AND TELECOM ADDITIONS TO PP&E

The nature of the cable television business is such that the construction, rebuild and expansion of a cable system are highly capital- intensive. The Cable and Internet segment categorizes its additions to property, plant and equipment ("PP&E") according to a standardized set of reporting categories that were developed and agreed to by the U.S. cable television industry and which facilitate comparisons of additions to PP&E between different cable companies. Under these industry definitions, our Cable and Internet additions to PP&E are classified into the following five categories:

  -  Customer premises equipment ("CPE"), which includes the equipment for
     digital set-top terminals, Internet modems and the associated
     installation costs;
  -  Scaleable infrastructure, which includes non-CPE costs to meet
     business growth and to provide service enhancements, including many of
     the costs to-date of the cable telephony initiative;
  -  Line extensions, which includes network costs to enter new service
     areas;
  -  Upgrade and rebuild, which includes the costs to modify or replace
     existing coaxial cable, fibre-optic network electronics; and
  -  Support capital, which includes the costs associated with the
     purchase, replacement or enhancement of non-network assets.

  -------------------------------------------- ----------------------------
                       Three months ended           Twelve months ended
                           December 31,                 December 31,
                  ---------------------------- ----------------------------
                             2005     % Chg
                            Actual    Actual               2005     % Chg
  (In millions      2006    Reclas-   Reclas-    2006      Pro       Pro
   of dollars)     Actual  sified(1)  sified    Actual   Forma(2)  Forma(2)
  -------------------------------------------- ----------------------------

  Cable and Internet
   PP&E additions(3)
    Customer premise
     equipment     $   79    $   72       9.7   $  230    $  249      (7.6)
    Scaleable
     infrastructure    47        28      67.9      106       119     (10.9)
    Line extensions    21        19      10.5       64        56      14.3
    Upgrade and
     rebuild            5         2     150.0       10         3       n/m
    Support capital    36        39      (7.7)      82        88      (6.8)
                  ---------------------------- ----------------------------
                      188       160      17.5      492       515      (4.5)
  Rogers Home Phone
   PP&E additions      71        33     115.2      193       127      52.0
  Rogers Business
   Solutions PP&E
   additions(4)        48        14       n/m       98        85      15.3
  Rogers Retail
   PP&E additions       6         4      50.0       11        15     (26.7)
                  ---------------------------- ----------------------------
                   $  313    $  211      48.3   $  794    $  742       7.0
                  ---------------------------- ----------------------------
  -------------------------------------------------------------------------
  (1) Certain prior year amounts have been reclassified to conform with the
      current year presentation.
  (2) See "Basis of Pro Forma Information" section for a discussion of
      considerations in the preparation of this pro forma information.
  (3) Included in Cable and Internet PP&E additions is integration expenses
      related to the integration of Call-Net of $6 million and $28 million
      for the three and twelve months ended December 31, 2006,
      respectively.
  (4) Included in Rogers Business Solutions PP&E additions is integration
      expenses related to the integration of Call-Net of $4 million and
      $15 million for the three and twelve months ended December 31, 2006,
      respectively.




The increase in Cable and Internet PP&E additions for the three months ended December 31, 2006 compared to the corresponding period in 2005 is primarily attributable to higher spending on scaleable infrastructure related to IP and other network capacity increases due to deferral from prior quarters, as well as higher spending on customer premise equipment related to digital boxes.

The increase in additions to Rogers Home Phone PP&E compared to the corresponding period in 2005 are primarily due to capacity on the cable network associated with the year-over-year increase in subscriber additions as well as additional spending on customer premises equipment.

The increase in additions to Rogers Business Solutions PP&E for the three months ended December 31, 2006 compared to the corresponding period of the prior year is primarily due to the completion of the final phase of the purchase of the Group Telecom/360Networks assets from Bell Canada, network enhancements, as well as the timing of capital spend. A total of $12 million of assets were purchased from Group Telecom/360Networks in the fourth quarter of 2006, of which $6 million was treated as PP&E, and $6 million was treated as other assets.

SEGMENTED REPORTING OF CABLE AND TELECOM RESULTS

The growing Rogers Home Phone customer base served by the cable telephony platform, coupled with the continued migration of Rogers Home Phone customers from the circuit-switched platform onto our cable telephony platform, results in our Rogers Home Phone service sharing much of the same physical infrastructure, sales, marketing and support resources as other Cable and Internet offerings. This leads to allocations of network and other operating costs between the Cable and Internet and the Rogers Home Phone segments of Cable and Telecom. As such, beginning in 2007, management and reporting of the Cable and Internet and the Rogers Home Phone segments of Cable and Telecom will be combined. We will continue to provide separate statistical information for our Rogers Home Phone subscribers, as we do for our digital cable and Internet subscribers.

  MEDIA
  -----

  Media Operating and Financial Results

  -------------------------------------------- ----------------------------
                       Three months ended          Twelve months ended
                           December 31,                 December 31,
  (In millions    ---------------------------- ----------------------------
   of dollars)       2006      2005     % Chg     2006      2005     % Chg
  -------------------------------------------- ----------------------------

  Operating
   revenue         $  317    $  300       5.7   $1,210    $1,097      10.3

  Operating
   expenses           270       261       3.4    1,059       969       9.3

                  ---------------------------- ----------------------------
  Operating
   profit(1)       $   47    $   39      20.5   $  151    $  128      18.0
                  ---------------------------- ----------------------------

  Operating profit
   margin(1)         14.8%     13.0%              12.5%     11.7%

  Additions to
   property,
   plant and
   equipment(1)    $   16    $   12      33.3   $   48    $   40      20.0

  -------------------------------------------- ----------------------------
  (1) As defined. See the "Key Performance Indicators and Non-GAAP
      Measures" section.


  Media Revenue



The increases in Media revenues for the three months ended December 31, 2006 over the corresponding period in 2005 primarily reflect growth in the Publishing, Radio, OMNI and The Shopping Channel divisions, partially offset by Sports Entertainment due to the timing of the receipt of Major League Baseball revenue sharing. The increases include higher advertising revenue in Publishing and Radio, and the launch of Hello! and Chocolat magazines. The launch of OMNI Manitoba, and consolidation of the Biography Channel and G4TechTV as a result of increased ownership contributed to the increase in revenue at OMNI. Strong consumer demand contributed to increased revenue at The Shopping Channel.

Media Operating Expenses

The increases in Media operating expenses for the three months ended December 31, 2006 compared to the corresponding period in 2005 are primarily due to increased costs at Publishing related to the new Chocolat magazine and the Canadian edition of Hello! magazine, increased programming costs at OMNI from the consolidation of the Biography Channel and G4TechTV and the launch of OMNI Manitoba. Higher sales volume attracted higher cost of goods sold on The Shopping Channel.

Media Operating Profit

The changes discussed above drove the year-over-year increases in Media's operating profit for the three months ended December 31, 2006 from the corresponding period in 2005, as well as the corresponding increase in operating margins.

Media Additions to PP&E

The majority of Media's PP&E additions in both 2006 and 2005 reflect renovations and enhancements to the Rogers Centre sports and entertainment venue in Toronto.

Recent Media Development

On January 1, 2007, Media closed the acquisition of five Alberta Radio stations announced earlier in 2006 and brought the total number of radio stations owned by Media to 51.

  OVERVIEW OF RECENT FINANCING AND SHARE CAPITAL ACTIVITIES

  Operations



For the three months ended December 31, 2006, cash generated from operations before changes in non-cash operating items, which is calculated by removing the effect of all non-cash items from net income, increased to $631 million from $380 million in the corresponding period of 2005. The $251 million increase is primarily the result of the increase in operating profit of $238 million in addition to a $12 million decrease in interest expense.

Taking into account the changes in non-cash working capital items for the three months ended December 31, 2006, cash generated from operations was $714 million, compared to $293 million in the corresponding period of 2005.

The cash flow generated from operations of $714 million, together with receipt of $11 million from the issuance of Class B Non-Voting shares from the exercise of employee stock options, resulted in total net funds of approximately $725 million raised in the three months ended December 31, 2006.

Net funds used during the three months ended December 31, 2006 totalled approximately $715 million, the details of which include funding:

  -  additions to PP&E of $403 million, net of $151 million of related
     changes in non-cash working capital;

  -  an aggregate net repayment of $280 million of outstanding advances
     under our bank credit facilities;

  -  the payment of $10 million on termination of cross-currency interest
     rate exchange agreements; and

  -  other net investments of $22 million including the final phase of an
     acquisition of certain CLEC assets and additions to program rights of
     $4 million.



Taking into account the cash deficiency of $29 million at the beginning of the period and the fund uses described above, the cash deficiency at December 31, 2006 was $19 million.

Financing

Our long-term debt instruments are described in Note 11 to the 2005 Annual Audited Consolidated Financial Statements.

As mentioned above, during the three months ended December 31, 2006, a total of $280 million net repayments of outstanding advances under our bank credit facilities was made. In addition, Wireless paid a net cash settlement of $10 million upon the maturity of cross-currency interest rate agreements in the aggregate notional principal amount of US$275 million and we received $11 million from the issuance of Class B Non-Voting shares under the exercise of employee stock options. In addition, Cable and Telecom concluded the final phase of a multi-staged transaction to acquire certain of the CLEC assets of Group Telecom/360 Networks from Bell Canada at a cost of approximately $12 million, including applicable taxes.

Effective January 1, 2007, the payment of management fees by subsidiary companies ceased. In addition, Cable and Telecom will no longer distribute $6 million per month to RCI.

  Interest Rate and Foreign Exchange Management

  Economic Hedge Analysis



For the purposes of our discussion on the hedged portion of long-term debt, we have used non-GAAP measures in that we include all cross-currency interest rate exchange agreements (whether or not they qualify as hedges for accounting purposes) since all such agreements are used for risk-management purposes only and are designated as a hedge of specific debt instruments for economic purposes. As a result, the Canadian dollar equivalent of U.S. dollar- denominated long-term debt reflects the contracted foreign exchange rate for all of our cross-currency interest rate exchange agreements regardless of qualifications for accounting purposes as a hedge.

During the three months ended December 31, 2006, there was no change in our U.S. dollar-denominated debt and the only change in our hedging status during the same period was on an economic basis and was due to the maturity on December 15, 2006 of cross-currency interest rate exchange agreements in the aggregate notional principal amount of US$275 million.

As a result of the above, on December 31, 2006 the amount of our U.S. dollar-denominated debt hedged on an economic basis was 91.4% and on an accounting basis was 85.6%.

  -------------------------------------------------------------------------
  (In millions of dollars,                       December 31,  December 31,
   except percentages)                              2006           2005
  -------------------------------------------------------------------------

  U.S. dollar-denominated long-term debt        US  $  4,895  US  $  4,917

  Hedged with cross-currency interest
   rate exchange agreements                     US  $  4,475  US  $  4,802

  Hedged exchange rate                                1.3229        1.3148

  Percent hedged                                      91.4%(1)       97.7%

  -------------------------------------------------------------------------

  Amount of long-term debt(2) at fixed rates:

  Total long-term debt                          Cdn $  7,658  Cdn $  8,410
  Total long-term debt at fixed rates           Cdn $  6,851  Cdn $  7,077
  Percent of long-term debt fixed                      89.5%         84.1%

  -------------------------------------------------------------------------

  Weighted average interest rate
   on long-term debt                                    7.98%         7.76%

  -------------------------------------------------------------------------
  (1) Pursuant to the requirements for hedge accounting under AcG-13, on
      December 31, 2006, RCI accounted for 93.6% of its cross-currency
      interest rate exchange agreements as hedges against designated U.S.
      dollar-denominated debt. As a result, 85.6% of consolidated U.S.
      dollar-denominated debt is hedged for accounting purposes versus
      91.4% on an economic basis.
  (2) Long-term debt includes the effect of the cross-currency interest
      rate exchange agreements.


  Outstanding Share Data



On December 15, 2006, shareholders approved a two-for-one split of our Class A Voting and Class B Non-Voting shares. As a result, beginning January 5, 2007, shareholders of record as of the close of business on December 29, 2006 received one additional share of the relevant class for each share held.

In addition, at the December 15, 2006 special shareholder meeting, shareholders approved amending our Class B Non-Voting shares to 'no par value' shares from the previous par value of $1.62478 (pre-split).

Set out below is our outstanding share data, on a post-split basis, as at December 31, 2006.

  -------------------------------------------------------------------------
  Common Shares(1)
  Class A Voting                                               112,467,648
  Class B Non-Voting                                           523,231,804

  Options to Purchase Class B Non-Voting Shares
  Outstanding                                                   19,694,860
  Exercisable                                                   14,160,866
  -------------------------------------------------------------------------
  (1) Holders of our Class B Non-Voting shares are entitled to receive
      notice of and to attend meetings of our shareholders, but, except as
      required by law or as stipulated by stock exchanges, are not entitled
      to vote at such meetings. If an offer is made to purchase outstanding
      Class A Voting shares, there is no requirement under applicable law
      or RCI's constating documents that an offer be made for the
      outstanding Class B Non-Voting shares and there is no other
      protection available to shareholders under RCI's constating
      documents. If an offer is made to purchase both Class A Voting shares
      and Class B Non-Voting shares, the offer for the Class A Voting
      shares may be made on different terms than the offer to the holders
      of Class B Non-Voting shares.


  Dividends and Other Payments on Equity Securities



On October 31, 2006, we declared a quarterly dividend of C$0.04 per share (on a post-split basis), which was paid on January 2, 2007 to shareholders of record on December 20, 2006, reflecting the increased C$0.16 per share annual dividend level and the new quarterly distribution schedule.

Unless indicated otherwise, all dividends paid by Rogers are Eligible Dividends as defined by the Canada Revenue Agency. 

DATASOURCE: Rogers Communications Inc.



CONTACT: Investment Community Contacts: Bruce M. Mann,

[phone], ; Dan Coombes, [phone],

; Media Contacts: Corporate and Media - Jan

Innes, [phone], ; Wireless, Cable and

Telecom - Taanta Gupta, [phone], 

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