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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2011
capacity to connect the cities of Toronto (via Montreal and Boston) to New York City, Seattle to
Vancouver and Edmonton to Toronto.
(ii) Satellite
Shaw’s Satellite operations own and lease, directly and indirectly, satellite transponders that
receive and amplify digital signals and transmit them to receiving dishes located within the
footprint covered by the satellite. Shaw Direct and Satellite Services businesses share the
satellite infrastructure distributing 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.
Satellite interests in these transponders are set forth in the table below.
Satellite Transponders
Nature of Satellite Services
Interest
Anik F2 18 Ku-band Owned
6 Ku-band Leased
2 Ku-band (partial) Leased
Anik F1R 28 Ku-band Leased
1 C-band Leased
1 C-band (partial) Leased
Intelsat Galaxy 16 1 Ku-band (partial) Leased
During 2010, Satellite entered into agreements to acquire capacity on a new satellite, Anik G1,
expected to be available in late calendar 2012. The capacity will provide additional bandwidth
for expanded customer choice, including new HD channels and other advanced services.
A more detailed description of each of the principal operations comprising the Company’s
Satellite Segment is set forth below.
Shaw Direct
Shaw Direct is one of three 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 its national roll-out of digital DTH services in 1997
and, as at August 31, 2011, had approximately 909,000 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.
With dual satellites (Anik F2 and Anik F1R) whose signals are received by subscribers through
an elliptical dish, as at August 31, 2011, Shaw Direct offered over 500 digital video and audio
channels with a programming line-up offering the majority of television services that are
available in Canada, including local over-the-air broadcasters, national networks, specialty
channels, U.S. and foreign channels, adult programming and ethnic services. Shaw Direct’s
subscribers have the option of choosing from a menu of programming packages designed to
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