Shaw Communications Inc.
(SJR) recently entered into agreements with Canwest Global Communications Corp. and some of its senior noteholders, regarding the acquisition of a minimum 20% equity interest and 80% voting interest in that company. Canwest is currently restructuring itself as a pure-play Canadian broadcaster. The approval of this transaction will allow Shaw to gain effective control of a premier broadcaster and content owner in the Canadian broadcasting industry.
 
Shaw’ cable operation is currently facing increased competition. Telus Corp’s (TU) entry into cable TV services has increased competitive pressure, and may likely, in our view, shave Shaw’s market share and cap margin expansion. The company is trying hard to deploy on-demand online video services, popularly known as TV Everywhere service. This service basically offers broadband video service that will enable pay-TV subscribers to watch premium cable programming online over broadband networks.
 
Shaw has decided to give a trial run of its innovative Gigabit Internet Network. This technology is 10 times faster than the company’s existing high-speed Nitro Internet Service, which offers 100 Mbps speed. As of now, Nitro Internet Service is the fastest Internet service in Canada. The new super-fast Internet service will be delivered over Fiber-to-the-Home network.
 
Shaw did not provide any concrete date line for the implementation of its much hyped wireless network. The company just announced that it will take initial steps in 2010 to deploy a wireless network with a build-out over several years. Canadian wireless market is quickly becoming competitive. In a bid to improve service and prices through competition, the Canadian federal government has given license to a new operator Globallive, beside the three existing giants e.g., Bell Canada (BCE), Telus Corp, and Rogers Communications Inc. (RCI).
Read the full analyst report on “SJR”
Read the full analyst report on “TU”
Read the full analyst report on “BCE”
Read the full analyst report on “RCI”
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