Shaw 2013 Annual Report Download - page 51

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S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
,
and lower var
i
ous other ex
p
enses, were
p
art
i
all
y
o
ff
set b
y
h
ig
her em
p
lo
y
ee related amounts du
e
t
o employee growth and annual merit increases, and higher programming costs due to ne
w
services and rate increases.
D
urin
g
the
y
ear Shaw’s content offerin
g
s for its Shaw Go – TV Ever
y
where a
pp
lication
s
i
ncreased w
i
th the launch o
f
the
f
ollow
i
n
g
a
pp
s: NFL
S
unda
y
T
i
cket and NBA Lea
g
ue Pass an
d
m
ost recently, Global Go. Shaw customers have the added benefit of being able to access
content on Shaw’s WiFi network
,
now with over 30
,
000 locations
.
The Company’s focus on building out its business products continued during the year and Sha
w
rece
i
ved Metro Ethernet Forum
(
MEF
)C
arr
i
er Ethernet
1
.
0C
ert
ifi
cat
i
on
f
or
i
ts
fi
bre-base
d
business ethernet services. MEF certification is the global standard for carrier ethernet services
,
d
esigned to accelerate the deployment of carrier ethernet services worldwide. The certificatio
n
p
rov
i
des customers assurance that
S
haw’s
fi
bre-based ethernet serv
i
ces meet or excee
d
standards and al
i
gn to the
i
r network
i
ng needs
.
Total capital investment of
$
867 million increased
$
57 million over last year. Capita
l
investment included
$
110 million funded through the accelerated capital fund established with
n
et
p
roceeds
f
rom the strate
gi
c transact
i
ons w
i
th each o
f
Ro
g
ers and
C
orus. The accelerated
cap
i
tal
f
und
i
n
i
t
i
at
i
ves
i
ncluded next generat
i
on v
i
deo del
i
very systems, exped
i
t
i
ng W
i
F
i
infrastructure build, continued investment in the new data centre, and increasing network
ca
p
ac
i
t
y.
Success-based ca
p
ital was $47 million lower than the
p
rior
y
ear due to decreased Internet an
d
P
hone modem purchases and lower
i
nstallat
i
on act
i
v
i
ty as well as a decl
i
ne
i
n subs
i
d
i
es
f
rom
increased pricing for video equipment sales, partially offset by higher HD and HDPVR vide
o
e
q
u
ip
ment rentals.
I
nvestment
i
nU
pg
rades and enhancement and Re
p
lacement cate
g
or
i
es comb
i
ned
i
ncrease
d
$
63 million compared to 2012. The higher investment included fibre build, network an
d
customer electronics in support of business growth, hub site and network electronics upgrade
s
t
o
i
m
p
rove
i
nternet ca
p
ac
i
t
y
; and
i
nvestment
i
n the W
i
F
i
network and next
g
enerat
i
on v
i
de
o
d
el
i
very systems, part
i
ally o
ff
set by pr
i
or year
i
nvestment
i
n the d
i
g
i
tal network upgrade pro
j
ect
and residential and business telecom enhancements.
I
nvestment in Buildings and other was up
$
47 million over last year. The increase was primaril
y
d
ue to s
p
end
i
n
g
on
S
haw
C
ourt, the new data centre, back o
ffi
ce
i
n
f
rastructure re
p
lacement
projects and other corporate assets
.
Spending in New housing development was comparable to the prior year
.
L
ate in the year the Company introduced video packages that include a complimentary HD bo
x
and launched service contracts that include an HDPVR or, for an additional fee, the equipmen
t
can be u
pg
raded to a
G
atewa
y
whole-home HDPVR solut
i
on. The contracts are
f
or a
2
4 mont
h
t
erm and provide for a bundled service of Video and Internet
.
47