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Thread: #Shaw Communications Inc. abandons plans to launch wireless phone service

  1. #1
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    #Shaw Communications Inc. abandons plans to launch wireless phone service

    YAY for Big 3.

    http://www.marketwatch.com/story/sha...11-09-01-82290

    However, 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. Even with our established base and considerable strengths and assets, we could not justify a wireless network build at this time

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    I think they tried to pull one of the big 3 into building it for them and they all told Shaw to they weren't interested. Most of the incumbents already have a triple-play anyway.
    Shaw may have been looking for a sweet deal.

    Besides, over the next 10 years Shaw has digital OTA broadcasting to worry about...
    Cheeri'o...
    Frankie...

    Please Note: I do not work for Bell. I also do not work for any wireless retail outlet.
    Do not ask me about promotions or offers from wireless providers.

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    More like Shaw ran out of money after buying all those specialty channels from Canwest. Better to wait and see what happens during the 700 MHz spectrum auction and then commit.

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    So Are they going to sell their AWS spectrum?

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    I'm wondering who will buy up the spectrum. I expect one of the big 3, but hope for anyone but the big 3
    Man gets hit by Brick Phone! Ouch!

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    Quote Originally Posted by Hans_Moleman View Post
    I'm wondering who will buy up the spectrum. I expect one of the big 3, but hope for anyone but the big 3
    Big 3 can't buy it for 5 years and if Shaw doesn't use the spectrum licenses within 5 years they lose it so most likely a new entrant will be buy it.
    Personal Plans:
    Plan 1: - Virgin Mobile 10GB BYOP - $54

  7. #7
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    I don't know if the Big Three really care. THey all have "fake" competitors to MOBI and WIND (koodoo,chatr,solo,virgin).

    It's beginning to sound like Air Canada --- Jazz --- Tango ---- Fandango ----- Mekkalekkahimekkaheineho

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    1) Shaw has a fairly restrictive network footprint outside of Alberta and BC. Yes they are a provider in Winnipeg, and Thunder Bay
    and the Sault but their ability to incorporate thick fibre installation into a cell network didn't make sense outside of Calgary and Edmonton.
    2) When Shaw purchased spectrum and Canwest stations they were led by a notorious drunk whose ego swelled as his bank account blossomed prior to the recession. Shaw became complacent and bloated as a result.
    3) The internal work that Shaw did back in 2007 on building a cell network did not reflect the real cost of deploying LTE.
    4) Shaw was negotiating with Rogers but Rogers wanted fibre IRU's in major markets that Shaw didn't want to give them.
    5) Shaw had planned on a bundle offering to consumers with a price per month of $30 per month - they could not achieve that price point without extending their business model out more than a decade.
    6) The wifi announcement will happen but in an extremely limited and low cost fashion otherwise they'll soon find that they will be revenue negative due to the cost of building lease agreements etc.
    7) Shaw already provides wholesale fibre services to Rogers for cell backhaul. The Rogers network is built out and there is little opportunity for account growth. If anything Shaw will be under pressure to lower prices on existing contracts as they come close to expiration date, or they'll go month to month which leaves Shaw vulnerable.
    8) This is a case of a company leaving their comfort zone (cable tv) and knowing that they don't like consultants they tried to build from within. It didn't work they burned through a seasoned wireless veteran in less than 9 months.
    9) Now Shaw is stuck with a western footprint when OTA digital and internet streaming are taking off.
    10) I predict Rogers or Bell will acquire Shaw within 3 to 5 years.

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