Shaw 2010 Annual Report Download - page 15

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, 2010, digital cable was available in almost all of Shaw’s cable systems. As at such
date, it had approximately 1,650,000 Digital subscribers, representing a penetration rate of over
70% of Basic cable subscribers. Of the Digital customers, over 725,000 have HD capabilities.
Shaw offers 86 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 over 70 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 pause, skip backward and skip forward functionality. Customers have
unlimited viewing of a program at their convenience for a 24-48 hour period. Shaw’s VOD service is
available exclusively to its digital cable customers. The Company offers VOD services in over 98% of
it’s footprint.
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. In 2009 Shaw rolled out DOCSIS 3.0 on its network offering a 100 Mbps
service, High Speed Nitro, to meet customers’ increasing speed and capacity demands. This service
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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2010