Shaw 2009 Annual Report Download - page 14

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(iii) Wireless
During 2008, the Company participated in the Canadian Advanced Wireless Spectrum (“AWS”)
auction and was successful in acquiring 20 megahertz of spectrum across most of its cable footprint
for a cost of $191 million. In early September 2009 the Company received its ownership
compliance decision from Industry Canada and was granted its AWS licenses. The Company
continues to formulate its strategic plan with respect to Wireless.
C. Description of the business
A more detailed description of each of the principal operations comprising the Company’s Cable
Segment and Satellite Segment, along with certain additional information, is set forth below.
1. Cable
Shaw offers a variety of cable television services from which its customers may choose. In this
regard, Shaw offers a full range of analog and digital video services ranging from a basic service to a
full digital cable service with access to HD channels, premium and VOD channels, music channels
and an interactive program guide.
Digital cable significantly expands the range of services that may be offered to a subscriber and
extends programming capacity. Digital cable, which is delivered by the Company’s network to DCTs
deployed in subscribers’ premises, also enhances picture and sound quality and provides the
platform from which Shaw has launched, and expects to continue to be able to launch, new revenue-
generating video and interactive services. Shaw offers customers a variety of DCTs for purchase or
rent.
As of August 31, 2009, digital cable was available in almost all of Shaw’s cable systems. As at such
date, it had approximately 1,300,000 Digital subscribers, representing a penetration rate of
approximately 57% of Basic cable subscribers. Of the Digital customers, over 500,000 have
HD capabilities. Shaw offers 56 HD channels, and over 500 HD titles through Shaw
Video-on-Demand and HD PPV.
Shaw continues to launch HD channels which offer superior picture detail and sound quality in a
format that fully utilizes the capabilities of wide screen, HD ready televisions. In support of HD,
Shaw offers for purchase or rent, DCTs which support the decoding and processing of HD content, as
well as DCTs which incorporate HD and Personal Video Recorder (“PVR”) features.
Shaw offers up to 75 channels of interactive, impulse PPV to its digital subscribers. Its PPV offering
allows customers to select and pay for specific programs which are available on various channels
with different start times. PPV offerings include movies, sports, concerts and other special events,
with the price dependent on the nature of the programming.
The Company also offers VOD services under the name Shaw Video-on-Demand. Its VOD service
enables customers to select programming from a library of titles through an on-line ordering system
or directly through the interactive program guide, and to view the programming on their television at
a time of their choosing, with digital video disk-type functionality, including pause, skip backward
and skip forward. Customers have unlimited viewing of a program at their convenience for a 24 hour
period. Shaw’s VOD service is available exclusively to its digital cable customers. The Company
offers VOD services in all of its major systems, as well as in many of its smaller systems.
10
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2009