Shaw 2010 Annual Report Download - page 14

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Shaw Direct and Satellite Services share a common satellite infrastructure. The DTH and Satellite
Services businesses distribute digital video and audio signals to different markets (residential and
business), thereby allowing the Company to derive distinct revenue streams from different
customers using a common platform.
During 2010 Shaw Direct entered into agreements with Telesat to acquire capacity on a new
satellite expected to be available in late 2012. The capacity will provide bandwidth for expanded
customer choice, including new HD and other advanced services.
(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. In March 2010
the Company commenced activities on its wireless infrastructure build and plans for an initial
launch in late calendar 2011.
The Company has selected Nokia Siemens Networks (“NSN”) to provide the radio access network
and core equipment for its next generation network. The equipment will be fully 3G and LTE capable
giving Shaw a variety of options to deliver wireless services to customers using the AWS band, as
well as future frequency bands.
(iv) Media
In May 2010 the Company announced that it had entered into agreements to acquire 100% of the
broadcasting business of Canwest including CW Media, the company that owns the specialty
channels acquired from Alliance Atlantis Communications Inc. in 2007. The total consideration,
including debt assumed, is approximately $2.0 billion. During 2010 the Company completed
certain portions of the acquisition including acquiring a 49.9% equity interest, a 29.9% voting
interest, and an option to acquire an additional 14.8% equity interest and 3.4% voting interest in
CW Media for total consideration of approximately $750 million, including acquisition costs. Also
during 2010 the Competition Bureau cleared Shaw’s acquisition and the Ontario Superior Court of
Justice issued a sanction order approving the related consolidated plan of compromise,
arrangement and reorganization. In late October 2010 the CRTC approved Shaw’s application
to assume control of Canwest’s broadcasting business and the outstanding portions of the
acquisition closed on October 27, 2010.
Technology is driving change in the Canadian broadcasting system, transforming content
distribution and viewership. This strategic acquisition allows Shaw to unite broadcasting services
and content with its advanced distribution platforms to offer customers strong choices in this
rapidly evolving landscape.
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 on the new Media
segment, is set forth below.
1. Cable
Shaw offers a variety of cable television services from which its customers may choose, including a
full range of analog and digital video services ranging from a basic service to a full digital cable
10
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2010