Shaw 2010 Annual Report Download - page 13

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
organizations. Shaw’s extensive fibre network provides international connections through
interconnection agreements and strategic alliances with other service providers.
Shaw Business Solutions has built both its fibre network and its customer base to promote future
revenue growth. Its network includes multiple fibre capacity on two diverse cross-North America
routes. Shaw Business Solutions’ southern route principally consists of approximately 6,400 route
kilometers (4,000 miles) located on routes between Vancouver (via Calgary, Winnipeg, Chicago,
Toronto and Buffalo) and New York City and between Vancouver and Sacramento. The northern route
consists of approximately 4,000 route kilometers (2,500 miles) of fibre between Edmonton (via
Saskatoon, Winnipeg and Thunder Bay) and Toronto. This route provides redundancy for the existing
southern route. Shaw Business Solutions also has a marine route consisting of approximately 330
route kilometers (200 miles) located on two fibres from Seattle to Vancouver Mainland (via
Victoria). In addition, Shaw Business Solutions has secured additional capacity to connect the
cities of Toronto (via Montreal and Boston) to New York City, Seattle to Vancouver and Edmonton to
Toronto.
(ii) Satellite
Over the past several years the Company has rebranded its operations in the Satellite division to
leverage the Shaw name and build a consistent identity within the business. Star Choice was
branded Shaw Direct, and Satellite Services was branded Shaw Broadcast Services (formerly known
as Cancom Broadcast Solutions) and Shaw Tracking (formerly known as Cancom Tracking
Solutions).
Shaw Direct is one of two DTH satellite operators licensed by the CRTC to deliver digital
subscription video and audio programming services from satellites directly to subscribers’ homes
and businesses. Shaw Direct began the national roll-out of its digital DTH services in 1997 and, as
at August 31, 2010, had approximately 906,000 subscribers.
The market for Shaw Direct’s digital DTH services can be divided into three principal categories:
households not served by cable and typically having access to a limited number of broadcast
services; households underserved by cable (i.e. served by cable systems that offer fewer than
80 channels); and households that receive full service cable (80 or more channels), primarily in
urban areas. Other potential customers include commercial, institutional and recreational facilities
interested in video and audio programming.
The Satellite Services operations include:
kShaw Broadcast Services – redistributing television and radio signals via satellite to cable
operators and other multi-channel system operators in Canada and the US, referred to as a
satellite relay distribution undertaking (“SRDU”,) and providing uplink and network
management services for conventional, specialty and pay broadcasters on a contract
basis; and
kShaw Tracking – provision of satellite tracking and messaging services to the Canadian
trucking industry, and integration and management of satellite data networks with land-
based telecommunications.
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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2010