CALGARY – Shaw Communications’ hotly anticipated wireless service will launch in “late 2011” once the company has invested an additional $100 million, confirmed CEO and vice chair Jim Shaw on Friday.
“We are advancing our wireless strategy to offer a competitive offering, and we are planning an initial launch in late 2011”, Shaw said on a call with industry analysts. “Accordingly, we are accelerating our wireless capital expenditure and expect to invest approximately $100 million more in 2010. We are excited about this opportunity to enhance our products and offerings with wireless service.”
Shaw paid $189.5-million for wireless spectrum in B.C., Alberta, Saskatchewan, Manitoba and parts of Northern Ontario during the 2008 spectrum auction run by Industry Canada.
While he declined to offer specifics on subscriber projections or roaming agreements, Shaw did confirm that they will own the LTE-capable network, and not re-sell a more established wireless providers’ infrastructure.
“We’re not a great partner”, Shaw joked.
He also hinted that the company’s wireless offering will be more data-focused than voice-focused, yet will strive to be “simple”.
“We’re talking about trying to entice… not the main (wireless holder), but start to work through the family”, he added.
The Calgary-based cable company saw its second quarter profits dip to $139 million, down more than 11% from $157 million for the same period last year. Consolidated service revenue of $929.1 million improved 10.7% year-over-year, which the company said was primarily due to customer growth, including acquisitions, and rate increases.
Basic cable subscribers declined 1,055 this quarter, while digital customers increased 98,544 to 1,508,527, bringing its digital penetration of basic to 64.8%. Internet customers grew by 26,735 to top 1,771,312, and home phone lines increased by 54,922 to reach 978,287. Shaw Direct DTH customers increased by 1,071 for the quarter ended February 28, 2010.
Service revenue in the Cable division was up 13% for the three month period to $732 million, while service revenue in the Satellite division was $197 million, a 4% increase over the comparable period last year.
"Our financial performance this quarter was solid”, Shaw said in a statement. “We continue to grow in the face of intense competition and a slow economy. We have built the foundation for growth with our advanced broadband network, strong customer relationships, and prudent management approach."
