Shaw Communications abandons wireless plan, will focus on its existing business
CALGARY - Shaw Communications is hanging up its plans to launch a wireless phone service.
The Calgary-based cable and television company says that the competition is too fierce in the wireless industry and that entering the market wouldn't be beneficial to its shareholders.
Instead, the company will focus on building its core businesses assets, which include providing a Wi-Fi network that will let customers use Shaw services outside their home.
(The Canadian Press)
Shaw Picks Broadband Wi-Fi Strategy over Conventional Wireless
medicaster daily news
September 1, 2011
Shaw Communications says it will build a broadband wireless network, and abandon its plans for conventional wireless.
Wireless broadband is increasingly viewed as a strong platform for the delivery of mobile media, rich content and streaming video.
The company's decision comes out of its strategic review of wireless business opportunities. Shaw says it reviewed its options and opportunities in the wireless business, including the potential value of wireless in the traditional cable bundle. It looked at the rapid pace of wireless technology innovation, and the high capital costs of building a competitive wireless network (including additional spectrum requirements).
Recent changes in the wireless competitive environment, such as a launch of other competitors, and that impact on long-term shareholder value were of course also considered.
As such the company says it feels "a more prudent approach" is to provide a managed Wi-Fi network that extends Shaw services beyond the customer's home.
"We have decided to focus on strengthening our core business and leveraging our media and programming assets to support our leadership position in broadband and video," said Brad Shaw, Chief Executive Officer of Shaw. "Our decision not to pursue a conventional wireless business is consistent with this strategic approach and our focus on shareholder value."
Wireless was first seen as a complementary product to other Shaw services, especially in a world where broadband Internet access is moving increasingly to wireless devices (smartphones, tablets, laptops, netbooks, etc).
A wireless offering could give Shaw a platform to extend its broadband, video, voice and content/programming businesses. However, Shaw says, the economics of a conventional wireless business as a new entrant are extremely challenging. New entrants lack the economies of scale and scope to compete effectively against well established incumbents with ubiquitous coverage, extensive device ecosystems, deep spectrum positions and large retail networks.
Wi-Fi is also seen as means of offloading 3G/4G traffic thereby reducing network build costs, and improving capacity and coverage.
In addition, Shaw noted, given that Wi-Fi spectrum is free and there are no device subsidies, it feels it can build extensive Wi-Fi coverage at a substantially lower cost relative to a traditional wireless network.
Shaw Communications Inc. is a diversified communications and media company, providing consumers with broadband cable television, High-Speed Internet, Home Phone, telecommunications services (through Shaw Business), satellite direct-to-home services (through Shaw Direct) and engaging programming content (through Shaw Media). Shaw serves 3.4 million customers, through a reliable and extensive fibre network. Shaw Media operates one of the largest conventional television networks in Canada, Global Television, and 18 specialty networks including HGTV Canada, Food Network Canada, History Television and Showcase.
ref. - http://www.mediacastermagazine.com/news ... 000549706/