Shaw 2011 Annual Report Download - page 19

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2011
(b) Environmental matters
Shaw has not made, and does not anticipate making, any significant capital expenditures to
comply with environmental regulations. Such regulations have not had, and are not expected to
have, a material effect on the Company’s earnings or competitive position.
(c) Foreign operations
Shaw does not have material foreign assets or operations.
Shaw Business U.S. Inc., a wholly-owned subsidiary of the Company, has entered into an
indefeasible right of use (“IRU”) with respect to a portion of a United States fibre network and
owns certain other fibre and facilities in the United States. Shaw Business U.S. Inc.
commenced revenue-generating operations in the United States in 2002. Its revenues for the
year ended August 31, 2011 were not material.
(d) Employees
As at August 31, 2011, the Company employed approximately 12,500 persons.
D. Government regulations and regulatory developments
Substantially all of the Corporation’s business activities are subject to regulations and policies
established under various Acts (Broadcasting Act (Canada) (“Broadcasting Act”),
Telecommunications Act (Canada) (“Telecommunications Act”), Radiocommunication Act
(Canada) (“Radiocommunication Act”) and Copyright Act (Canada) (“Copyright Act”)).
Broadcasting and telecommunications are generally administered by the CRTC under the
supervision, respectively, of the Department of Canadian Heritage (Canadian Heritage) and
Department of Industry (Industry Canada).
Pursuant to the Broadcasting Act, the CRTC is mandated to supervise and regulate all aspects
of the broadcasting system in a flexible manner. The Broadcasting Act requires BDUs to give
priority to the carriage of Canadian services and to provide efficient delivery of programming
services. The Broadcasting Act also sets out requirements for television broadcasters with
respect to Canadian content. Shaw’s businesses are dependent upon licenses (or operate
pursuant to an exemption order) granted and issued by the CRTC and Industry Canada.
Under the Telecommunications Act, the CRTC is responsible for ensuring that Canadians in all
regions of Canada have access to reliable and affordable telecommunication services of high-
quality. The CRTC has the authority to forbear from regulating certain services or classes of
services provided by a carrier if the CRTC finds that there is sufficient competition for that
service to protect the interests of users. All of Shaw’s telecommunication retail services have
been forborne from regulation and are not subject to price regulation. However, regulations do
impact certain terms and conditions under which these services are provided.
The technical operating aspects of the Corporation’s businesses are also regulated by technical
requirements and performance standards established by Industry Canada, primarily under the
Telecommunications Act and the Radiocommunication Act.
Pursuant to the Copyright Act, the Copyright Board of Canada oversees the collective
administration of copyright royalties in Canada including the review and approval of copyright
tariff royalties payable to copyright collectives by BDUs.
The sections below include a more detailed discussion of various regulatory matters and recent
developments specific to Shaw’s businesses.
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