Shaw 2013 Annual Report Download - page 24

S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
31
,
2013
L
imits on non-
C
anadian ownership and control
f
or broadcasting undertaking
s
N
on-Canadians are permitted to own and control, directly or indirectly, up to 33.3% of the
voting shares and 33.3% of the votes of a holding company that has a subsidiary operating
com
p
an
y
l
i
censed under the Broadcast
i
n
g
Act. In add
i
t
i
on, u
p
to
20%
o
f
the vot
i
n
g
shares an
d
20% of the votes of the licensee may be owned and controlled, directly or indirectly, by non-
Canadians. As well
,
the chief executive officer (CEO) and not less than 80% of the board o
f
di
r
ecto
r
soft
h
e
l
ice
n
see
m
ust be
r
eside
n
tCa
n
adia
n
s
.Th
e
r
ea
r
e
n
o
r
est
r
ictio
n
so
n
t
h
e
n
u
m
be
r
of
n
on-voting shares that may be held by non-Canadians at either the holding company or license
e
level. Neither the holding company nor the licensee may be controlled in fact by non-
C
anad
i
ans, the determ
i
nat
i
on o
f
wh
i
ch
i
sa
q
uest
i
on o
ff
act w
i
th
i
n the
j
ur
i
sd
i
ct
i
on o
f
the
C
RT
C.
The same restr
i
ct
i
ons a
pp
l
y
to certa
i
n
C
anad
i
an carr
i
ers
p
ursuant to the Telecommun
i
cat
i
on
s
Act and assoc
i
ated regulat
i
ons and the Rad
i
ocommun
i
cat
i
on Act and assoc
i
ated regulat
i
ons
,
except that there is no requirement that the CEO be a resident Canadian. In March 2012, the
g
overnment announced
i
ts
i
ntent
i
on to amend the Telecommun
i
cat
i
ons Act to remove
C
anad
i
an
o
wnersh
i
p requ
i
rements
f
or w
i
re-l
i
ne and w
i
reless telecommun
i
cat
i
ons carr
i
ers w
i
th annua
l
revenues from the provision of telecommunications services in Canada that represent less than
10%
o
f
the total annual revenues, as determ
i
ned b
y
the
C
RT
C
. These amendments were
p
asse
d
as part o
f
the
f
ederal budget b
i
ll
i
n June
2012
and may lead to greater levels o
f
compet
i
t
i
on
in
t
he Canadian telecommunications market.
The Corporation’s Articles contain measures to ensure the Corporation is able to remai
n
com
p
l
i
ant w
i
th a
pp
l
i
cable
C
anad
i
an ownersh
ip
re
q
u
i
rements and
i
ts ab
i
l
i
t
y
to obta
i
n, amend o
r
renew a l
i
cense to carry on any bus
i
ness.
S
haw must
fi
le a compl
i
ance report annually w
i
th the
CRTC confirming that it is eligible to operate in Canada as a telecommunications commo
n
ca
rr
ie
r.
AWS spectrum transfer
s
O
n June
28
,
2013
the M
i
n
i
ster o
f
Industr
y
announced a new
f
ramework
f
or the rev
i
ew o
f
spectrum l
i
cense trans
f
ers,
i
nclud
i
ng prospect
i
ve trans
f
ers that could ar
i
se
f
rom opt
i
ons an
d
o
ther agreements. A licensee is required to seek a review within 15 days of entering into any
a
g
reement that could lead to a
p
ros
p
ect
i
ve trans
f
er. The
1
5da
y
t
i
m
i
n
gp
rov
i
s
i
on w
i
th
i
nth
e
f
ramework does not apply to pr
i
or agreements. The spectrum opt
i
on agreement w
i
th Rogers w
i
ll
n
ot be subject to an immediate review, as it was entered into prior to the release of the new
f
ramework, but w
i
ll be sub
j
ect to rev
i
ew
p
r
i
or to an
y
s
p
ectrum l
i
cense trans
f
er. Under the new
f
ramework, all spectrum transfer reviews will include consideration of a number of factors
,
including the overall distribution of license holdings in the licensed spectrum band and othe
r
commerc
i
al mob
i
le s
p
ectrum bands
i
n the l
i
censed area, the relat
i
ve ut
i
l
i
t
y
and subst
i
tutab
i
l
i
t
y
o
f the licensed spectrum and the change in spectrum concentration levels that would result
f
rom the transfer
.
E. Ke
yp
erformance drivers
Shaw measures the success of its strategies using a number of key performance drivers which
are outlined below, including a discussion as to their relevance, definitions, calculatio
n
m
ethods and underl
yi
n
g
assum
p
t
i
ons
.
20