Shaw 2009 Annual Report Download - page 15

Internet
Leveraging off its cable television infrastructure Shaw provides high speed Internet access services
to residential and small business subscribers in almost all of its operating areas. It currently offers
up to five levels of residential Internet service: High-Speed Internet, High-Speed Lite, High-Speed
Xtreme, High Speed Warp, and High-Speed Nitro. Similar to its residential Internet service, Shaw
also offers a variety of Internet services for small and medium sized business customers.
During 2009 Shaw made significant investments to improve the speed and performance of its
Internet services increasing the speed of services by 50% as well as launching a 100 Mbps service
using DOCSIS 3.0 technology. Upgrades and enhancements of its capital infrastructure are ongoing
and include building up the Company’s Internet backbone and decreasing the average node size.
In providing its Internet access services, Shaw deploys cable modems, generally based on DOCSIS
2.0 specifications. This technology has enabled it to increase the capabilities and reliability of its
network by increasing the capacity and throughput in both the upstream and downstream portions
of Shaw’s cable infrastructure. Shaw is currently rolling out DOCSIS 3.0 on its network offering a
100 Mbps service, High Speed Nitro, to meet customers’ increasing speed and capacity demands.
Shaw currently offers high-speed Internet service with downstream speeds from 512 Kbps to
25 Mbps, or in major centres to 100 Mbps, depending on the service selected.
As at August 31, 2009, approximately 236,000 subscribers for Shaw’s Internet services did not
concurrently subscribe for any of its cable television services.
The fibre network that serves as the primary Internet backbone for the Company’s broadband
Internet customers is designed with fibre optic technology, has redundant capacity, and extends
from Victoria to New York, with connectivity to major Internet peering points in Seattle, Washington;
Palo Alto, California; Chicago, Illinois; and Ashburn, Virginia.
Shaw operates two Internet data centres in Calgary, Alberta and several smaller regional centres.
The data centres allow the Company to manage its Internet services exclusively, provide e-mail
service directly to its customers using “@shaw.ca” e-mail addresses, and allow the Company to
manage its own operations in terms of provisioning web space, backbone connectivity and peering
arrangements into the United States. The centres also host Shaw customers’ most popular web
content locally.
Digital Phone
The Company launched its fully featured residential telephone service under the brand name Shaw
Digital Phone in 2005. Shaw Digital Phone combines local, long distance and the most popular
calling features into a simple package for a fixed monthly fee. Professional installation, access to
E-911 (enhanced 911 emergency service), directory and operator services, and around-the-clock
(24/7/365) customer support also form part of the Digital Phone service, at no additional cost to
subscribers. During 2007, the Company introduced Shaw Digital Phone Lite, an offering tailored for
light long distance users. The service includes a local phone line, popular calling features and long
distance at competitive rates. During 2008, the Company introduced Shaw Digital Phone Basic, an
offering targeted for users requiring limited phone features. The service includes a local phone line,
caller ID and long distance at competitive rates.
Shaw Digital Phone utilizes PacketCable technology and DOCSIS specifications. Customers
existing phone lines are connected into modems usually installed at the location of the central
wiring in the customers’ premises. The modem converts the voice conversation (sounds waves) into
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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2009