Shaw 2009 Annual Report Download - page 12

additional services offered in a bundle; and operational efficiencies through centralized billing and
customer care.
Since 1996, Shaw has provided Internet access services to residential and small business
subscribers in its cable television systems through its technologically advanced broadband
network. In the majority of its’ Internet serving areas the Company currently offers five levels of
Internet service: High-Speed Lite, High-Speed, High-Speed Xtreme, High Speed Warp and High
Speed Nitro. During 2009, Shaw launched a 100 Mbps service using Data Over Cable Service
Interface Specification (DOCSIS) 3.0 technology. The new 100 Mbps service, High Speed Nitro, is
available in Saskatoon, Victoria, Winnipeg, Calgary, Edmonton and Vancouver. Also during 2009
the Company implemented speed increases of 50% and currently offers high-speed Internet service
with downstream speeds from 512 Kbps to 25 Mbps, or in those areas launched with DOCSIS 3.0 to
100 Mbps, depending on the service selected.
As at August 31, 2009, there were approximately 1,678,000 subscribers (connected and
scheduled installations) to Shaw’s Internet access services, representing a penetration rate of
approximately 73% of Basic subscribers, one of the highest in North America.
In 2005, Shaw entered the “triple play” market of voice, video and data services with the launch of
Shaw Digital Phone, a reliable, fully featured and affordable residential telephone service. Since
then, the Company has continued to expand its Digital Phone footprint across other of its cable
service areas and offers the service to 94% of homes passed. As at August 31, 2009, it had
approximately 830,000 Digital Phone lines (primary and secondary lines on billing plus pending
installs).
During 2007, Shaw invested in new systems allowing the Company to operate independently as a
Competitive Local Exchange Carrier (“CLEC”) using its own back office infrastructure. Shaw
launched these systems late in 2007 and, during 2008, gained cost efficiencies as these were
fully rolled out. Shaw is now also better able to provide an exceptional customer experience due to
increased control over the customer order and fulfillment process. Also during 2007, the Company
successfully implemented a Class 4 toll switch which allows for the routing of telephone traffic to
the lowest cost long distance provider. Least cost routing is now fully deployed across Shaw’s
network providing further cost efficiencies.
Since the initial launch of Digital Phone Shaw has expanded the product offerings and now offers
three tiers of residential service appealing to a wide range of customers. In the latter part of 2007, it
also started to offer commercial voice services, including a variety of Shaw for Business products for
the home based or smaller business and a Primary Rate Interface (“PRI”) service for the medium to
larger business.
Shaw has a customer-centric strategy designed to deliver high-quality customer service, simplicity
and value to its customers through various bundled service offerings for its video, Internet and
Digital Phone products. Delivering value to customers creates value for Shaw’s stakeholders
through incremental penetration, operational efficiencies and reduced churn.
The Company’s business solution services include Internet, data connectivity and telecommunications
and are offered under the brand “Shaw Business Solutions”.
Shaw Business Solutions was established in 2000 to develop and manage the fibre network that
serves as the primary Internet backbone for the Company’s broadband Internet customers and to
provide Internet, data and voice connectivity services to large and medium businesses and other
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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2009