Shaw 2014 Annual Report Download - page 14

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2014
packages, Shaw offers a variety of Shaw Business products for home based or smaller
businesses including managed and hosted private branch exchanges (“PBX”) and a primary rate
interface (“PRI”) service for medium and larger businesses.
Shaw Digital Phone utilizes DOCSIS technology similar to the Company’s Internet service.
Customers’ existing phone lines are connected into modems usually installed at the location of
the central wiring in the customers’ premises. The modem converts the voice conversation into
digital IP packets that are carried to an IP-based telephone switch. At this point, the packets
are transformed again into traditional telephone signals for connection to the public switched
telephone network or may be routed through the IP network to the called party.
Shaw Business
Using the Company’s national and regional fibre network, Shaw Business provides services to
small and medium size business, Internet Service Providers (“ISPs”), cable companies,
broadcasters, governments and other organizations that require end-to-end Internet, data and
voice connectivity. Shaw Business is also a major account and wholesale provider offering third
parties advanced high speed data connectivity and Internet services in Canada and the United
States. Its offerings currently include data, voice and video transport and Internet connectivity
services. It also continues to establish public and private peering arrangements with high speed
connections to major North American, European and Asian network access points and other
tier-one backbone carriers.
In 2013, Shaw completed the acquisition of ENMAX Envision Inc. (“Envision”), a company
providing leading telecommunication services to Calgary business customers, for approximately
$225 million, excluding working capital adjustments. The transaction expanded Shaw’s
Business initiatives in Calgary and significantly enhanced the profile of Shaw Business in the
competitive Calgary marketplace.
The Shaw Business network includes multiple fibre capacity on two diverse cross-North America
routes. The Company’s southern route principally consists of approximately 6,400 route
kilometres (4,000 miles) of fibre located on routes between Vancouver (via Calgary, Winnipeg,
Chicago, Toronto and Buffalo) and New York City. The northern route consists of approximately
4,000 route kilometres (2,500 miles) of fibre between Edmonton (via Saskatoon, Winnipeg and
Thunder Bay) and Toronto. These routes, along with a number of secured capacity routes,
provide redundancy for the network. Shaw Business also utilizes a marine route consisting of
approximately 330 route kilometres (200 miles) located on two fibres from Seattle to Vancouver
(via Victoria), and has secured additional capacity on routes between a number of cities,
including Vancouver and Calgary, Vancouver and San Jose, Toronto and New York City, Seattle
and Vancouver and Edmonton and Toronto.
(ii) Satellite
Shaw’s Satellite operations own and lease, directly and indirectly, satellite transponders that
receive and amplify digital signals and transmit them to receiving dishes located within the
footprint covered by the satellite. Shaw Direct and Satellite Services businesses share the
satellite infrastructure distributing digital video and audio signals to different markets
(residential and business), thereby allowing the Company to derive distinct revenue streams
from different customers using a common platform.
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