Shaw 2011 Annual Report Download - page 13

Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2011
August 31, 2011 there were approximately 1,880,000 subscribers (connected and scheduled
installations) to Shaw’s Internet access services.
In providing its Internet access services, Shaw deploys cable modems, generally based on
DOCSIS 2.0 or 3.0 specifications. This technology has enabled the Company to increase the
capabilities and reliability of its network by increasing the capacity and throughput of both the
upstream and downstream portions of Shaw’s cable infrastructure. Upgrades and enhancements
of its capital infrastructure are ongoing and include the DNU, building up the Company’s
Internet backbone, and decreasing the average node size.
During 2011 Shaw conducted an extensive consultation process which allowed its Internet
customers to share their ideas on Internet usage allowances and billing. As a result of these
consultations, Shaw launched new Internet packages with higher speeds and expanded usage
allowances, including an industry leading 250 Mbps service using DOCSIS 3.0 technology to
meet the increasing data needs of its subscribers. Currently, the 250 Mbps service is available
in approximately 5% of the Company’s footprint, and will be rolled out to additional areas as
analog television tiers are converted to digital.
In 2011 Shaw also launched a 1 Gigabit Internet service in limited service areas. The service
utilizes Fibre-to-the-Premises (“FTTP”) and will be able to support new, cutting-edge
broadband applications that require faster download speeds.
In 2010 Shaw introduced the Shaw Wireless Gateway, a modem and router in one, providing
customers a secure, fast Wi-Fi connection to the Internet and in 2009 Shaw made significant
investments to improve the speed and performance of its Internet services that increased the
speed of services by 50% and launched a 100 Mbps service.
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,
providing e-mail service directly to its customers using “@shaw.ca” e-mail addresses,
provisioning web space, and managing backbone connectivity and peering arrangements. The
centres also host Shaw customers’ most popular web content locally.
Shaw recently announced its plans to build a managed carrier-grade Wi-Fi network that will extend a
customer’s broadband experience beyond their home. Wi-Fi is in virtually all portable consumer
devices and customers are actively seeking Wi-Fi hotspots to reduce data costs and improve their
wireless broadband experience. Shaw, working with Cisco, will become the first service provider in
Canada to deliver secure and reliable wireless broadband in thousands of locations. During 2011
the Company also commenced construction of a new data centre in Calgary that will allow it to stay
ahead of the technology curve being able to handle new innovations as they come, such as the Wi-Fi
network initiative. The data centre incorporates energy efficient cooling systems allowing Shaw to
reduce the environmental impact. The centre is planned to be complete in the spring of 2014.
Digital Phone
In 2005, Shaw entered the “triple play” market of voice, video and data services with the
launch of Shaw Digital Phone, a reliable, fully featured and affordable residential telephone
service. Since then, the Company continued to expand its Digital Phone footprint and offers the
service to 96% of homes passed. As at August 31, 2011 it had approximately 1,230,000
Digital Phone lines (primary and secondary lines on billing plus pending installs).
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