Higher Operating Revenue Overall Cable revenue grew 3 % this year compared to last year, the net result of: Revenue from television was 3 % lower this year, compared to 2012, the net result of: GLYPH<129> continued growth in subscribers for our Internet and phone products GLYPH<129> the May 2013 acquisition of Mountain Cable GLYPH<129> partially offset by television subscriber losses. GLYPH<129> the year-over-year decline in television subscribers GLYPH<129> the impact of promotional and retention pricing activity associated with heightened pay TV competition from IPTV offerings GLYPH<129> partially offset by pricing increases during the year and the acquisition of Mountain Cable. We continue to offer competitive strategic bundling and retention initiatives to transition portions of the subscriber base to term contracts. Lower Television Revenue The digital cable subscriber base represents 84 % of our total television subscribers, compared to 80 % at the end of 2012. We believe that the larger selection of digital content, video on-demand, HDTV and PVR equipment combined with the ongoing analog to digital conversion initiative continues to contribute to the increasing penetration of the digital subscriber base as a percentage of our total television subscriber base. Internet revenue increased by 16 % in 2013, compared to last year, the result of a larger Internet subscriber base, general movement to higher end speed and usage tiers and changes in Internet service pricing. The increase was also affected by the timing and mix of promotional programs. Our Internet customer base is approximately 2.0 million subscribers, and Internet penetration represents: GLYPH<129>9 2 % of our television subscribers, compared to 84 % for 2012 GLYPH<129>4 9 % of the homes passed by our cable network; or the same as 2012. 2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 43 MANAGEMENT’S DISCUSSION  AN D ANALYSIS Higher Internet and Subscribers (IN MILLIONS OF DOLLARS) CABLE TOTAL REVENUE 2013 2012 2011 $3,475 $3,358 $3,309 20 1 3 2012 2011 1 ,9 61 1, 8 64 1,793 49% 49% 48% (IN THOUSANDS) INTERNET SUBSCRIBERS AND INTERNET  PENETRATION OF HOMES PASSED %  (IN MILLIONS OF DOLLARS) CABLE SERVICE REVENUE BREAKDOWN 2013 2012 2011 $498 $477 $478 $1,159 $998 $926 $1,809 $1,868 $1,878 Television Internet Phone 20 1 3 2012 2011 1 ,7 8 9 1,76 8 1,777 8 4% 80% 77% (IN THOUSANDS) DIGITAL HOUSEHOLDS AND DIGITAL PENETRATION OF TELEVISION CUSTOMERS % 