Shaw 2013 Annual Report Download - page 38

S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
31
,
2013
D
I
G
ITAL PH
O
NE
The competitors of Shaw Digital Phone include ILECs, Competitive Local Exchange Carrier
s
(“CLECs”), non-facilities-based Voice over Internet Protocol (“VoIP”) providers and wireless
p
rov
i
ders.
S
everal o
f
such com
p
et
i
tors have lar
g
er o
p
erat
i
onal and
fi
nanc
i
al resources than the
Corporation and are well established with residential customers in their respective markets. In
addition, there is an emer
g
in
g
trend toward households o
p
tin
g
to rel
y
on wireless voice service
s
i
n
p
lace o
f
landl
i
ne serv
i
ces such as D
igi
tal Phone. These develo
p
ments ma
y
ne
g
at
i
vel
y
a
ff
ect
t
he business and prospects of Shaw’s Digital Phone
.
I
NTERNET INFRA
S
TR
UC
T
U
RE
Through Shaw Business, Shaw competes with other telecommunications carriers in providin
g
h
igh-speed broadband communications services (data and video transport and Interne
t
connect
i
v
i
t
y
serv
i
ces
)
to bus
i
nesses, I
S
Ps and other telecommun
i
cat
i
ons
p
rov
i
ders. Th
e
t
elecommun
i
cat
i
ons serv
i
ces
i
ndustry
i
n
C
anada
i
sh
i
ghly compet
i
t
i
ve, rap
i
dly evolv
i
ng an
d
subject to constant change. Competitors of Shaw Business include ILECs, competitive acces
s
p
rov
i
ders,
C
LE
C
s, I
S
Ps,
p
r
i
vate networks bu
i
lt b
y
lar
g
e end users and other telecommun
i
cat
i
ons
compan
i
es. In add
i
t
i
on, the development and
i
mplementat
i
on o
f
new technolog
i
es by other
s
could give rise to significant competition
.
S
ATELLITE
S
ERVI
C
E
S
I
n its Canadian SRDU business, Satellite Services faces competition principally from one othe
r
op
erat
i
n
gS
RDU o
p
erator
i
n
C
anada. In Februar
y 2010
, another com
p
an
y
was l
i
censed b
y
the
C
RT
C
to prov
i
de both DTH and
S
RDU serv
i
ces
i
n
C
anada, but has not yet commenced serv
i
ce
.
Satellite Services also faces competition from the expansion of fibre distribution system
s
d
el
i
ver
i
n
g
d
i
stant U
S
and
C
anad
i
an convent
i
onal telev
i
s
i
on s
ig
nals
i
nto terr
i
tor
i
es
p
rev
i
ousl
y
served only by
S
RDU operators
.
MEDIA
The
O
TA and
S
pec
i
alty telev
i
s
i
on bus
i
ness and the advert
i
s
i
ng markets
i
nwh
i
ch they operat
e
are highly competitive. Numerous broadcast and specialty television networks compete fo
r
advert
i
s
i
n
g
revenues. The
C
om
p
an
y
’s ab
i
l
i
t
y
to com
p
ete success
f
ull
y
de
p
ends on a number o
f
f
actors,
i
nclud
i
ng
i
ts ab
i
l
i
ty to secure popular telev
i
s
i
on programm
i
ng and ach
i
eve h
i
gh
d
istribution levels. The Company expects that competition will continue to increase and ther
e
can be no assurance that
i
ncreased com
p
et
i
t
i
on w
i
ll not have a mater
i
al adverse e
ff
ect on
Shaw’s results of operations.
I
MPA
C
T
O
FRE
GU
LATI
ON
As more fully discussed under Government regulations and regulatory developments,
substantially all of the Corporation’s business activities are subject to regulations and policies
adm
i
n
i
stered b
y
Industr
yC
anada and
/
or the
C
RT
C
. The
C
or
p
orat
i
on’s o
p
erat
i
ons and results ar
e
affected by changes in regulations, policies and decisions, including changes in interpretatio
n
o
f existing regulations by courts, the government or the regulators, in particular the CRTC,
I
ndustr
yC
anada, the
C
om
p
et
i
t
i
on Bureau and the
C
o
py
r
ig
ht Board. Th
i
sre
g
ulat
i
on relates to,
and may have an impact on, among other things, licensing, competition, programming carriag
e
and terms of carriage, strategic transactions and the potential for new or increased fees.
C
han
g
es
i
n the re
g
ulator
y
re
gi
me ma
y
adversel
y
a
ff
ect the o
p
erat
i
ons and
p
er
f
ormance o
f
the
Company
.
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