Shaw 2012 Annual Report Download - page 13

Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2012
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 2012, Shaw commenced building a managed carrier-grade WiFi network to extend a
customer’s broadband experience beyond their home, and launched the service on a trial basis
in select cities. WiFi is in virtually all portable consumer devices and customers are actively
seeking WiFi hotspots to reduce data costs and improve their wireless broadband experience.
The Shaw WiFi trial is currently available in Calgary, Edmonton, Winnipeg, Vancouver and
Victoria.
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
to approximately 17% of the Company’s customers, and will be rolled out to additional areas as
the DNU is completed.
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.
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.
During 2011 the Company 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 are
adopted, such as the WiFi network initiative. The data centre will incorporate energy efficient
cooling systems allowing Shaw to reduce the environmental impact. The centre is planned to be
complete late in fiscal 2015.
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, 2012, it had approximately 1.4 million
Digital Phone lines (primary and secondary lines on billing plus pending installs).
Shaw Digital Phone offers packages tailored to meet the needs of residential subscribers with
varying levels of included long distance and calling features. Professional installation, access to
E-911 (enhanced 911 emergency service), directory and operator services, and
around-the-clock (24/7/365) customer support are included in the Digital Phone service at no
additional cost to subscribers. Similar to the residential packages, Shaw offers a variety of Shaw
Business products for home based or smaller businesses including managed and hosted PBX
and a Primary Rate Interface (“PRI”) service for medium and larger businesses.
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