Shaw 2009 Annual Report Download - page 18

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television season ends. Subscriber growth in the Satellite business segment is also affected by
vacation schedules as customers reconnect and disconnect DTH services at summer homes.
Further, customers who vacation in warmer climates during the winter months may also connect
and reconnect DTH or cable services on a seasonal basis. New subscriber activations may also be
positively affected by the Christmas holiday season. While subscriber activity is generally subject to
these seasonal fluctuations, it may also be affected by competition and varying levels of
promotional activity undertaken by the Company. Shaw’s businesses generally are not dependent
upon any single customer or upon a few customers.
(b) Environmental matters
Shaw has not made, and does not anticipate making, any significant capital expenditures to comply
with environmental regulations. Such regulations have not had, and are not expected to have, a
material effect on the Company’s earnings or competitive position.
(c) Foreign operations
Shaw does not have material foreign assets or operations.
Shaw Business Solutions U.S. Inc., a wholly-owned subsidiary of the Company, has entered into an
indefeasible right of use (“IRU”) with respect to a portion of a United States fibre network and owns
certain other fibre and facilities in the United States. Shaw Business Solutions U.S. Inc.
commenced revenue-generating operations in the United States in 2002. Its revenues for the
year ended August 31, 2009 were not material.
(d) Employees
As at August 31, 2009, the Company employed approximately 10,000 persons.
E. Government regulations and regulatory developments
Substantially all of the Corporation’s business activities are subject to regulations and policies
established under various Acts (Broadcasting Act (Canada) (“Broadcasting Act”),
Telecommunications Act (Canada) (“Telecommunications Act”), Radiocommunication Act
(Canada) (“Radiocommunication Act”) and Copyright Act (Canada) (“Copyright Act”)).
Broadcasting and telecommunications are generally administered by the CRTC under the
supervision, respectively, of the Department of Canadian Heritage (Canadian Heritage) and
Department of Industry (Industry Canada).
Pursuant to the Broadcasting Act, the CRTC is mandated to supervise and regulate all aspects of the
broadcasting system in a flexible manner. The Broadcasting Act requires broadcast distribution
undertakings (“BDUs”) to give priority to the carriage of Canadian services and to provide efficient
delivery of programming services. Shaw’s Cable, DTH, and Satellite Service businesses are
dependent upon licenses (or operate pursuant to an exemption order) granted and issued by the
CRTC and Industry Canada.
Under the Telecommunications Act the CRTC is responsible for ensuring that Canadians in all
regions of Canada have access to reliable and affordable telecommunication services of high-
quality. The CRTC has the authority to forbear from regulating certain services or classes of services
provided by a carrier if the CRTC finds that there is sufficient competition for that service to protect
the interests of users. All of Shaw’s telecommunication retail services have been forborne from
regulation and are not subject to price regulation. However, regulations do impact certain terms and
conditions under which these services are provided.
14
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2009