Shaw plans to enter wireless market in 2011
By Dina O'Meara, Calgary Herald
April 9, 2010 11:37 AM
CALGARY - Shaw Communications will be launching wireless services next year, chief executive Jim Shaw said Friday, ending speculation about when the Calgary-based cable and internet provider would be entering the highly competitive market.
The announcement was made at the same time Shaw posted second quarter results that slid 11 per cent to $139 million on non-operating items such as debt retirement costs.
“We are advancing our strategy to offer a competitive wireless offering and are now planning for an initial launch in late 2011,” Shaw said in a statement. “Accordingly, we are accelerating our wireless capital spend and expect to invest approximately $100 million in fiscal 2010. The investment in this new business will primarily be funded by cash on hand.”
Shaw bought $190 million of wireless spectrum during the federal auction in 2008, launched to increase competition in Canada, after years of denying interest in entering the industry.
However, executives remained coy Friday about where it would be launching the service and when, saying it was competitive information for the time being.
The company did say it would maintain its 100 per cent ownership of the wireless unit.
On the operations side, digital and internet and digital phone customer numbers rose during the quarter, boosting second quarter revenues by 11 per cent to $929 million.
Funds from operations rose eight per cent to $335 million.
ref. - http://www.calgaryherald.com/business/S ... story.html