Shaw to Build Broadband Wireless Network

[hugh]

from press release today

Shaw Communications Inc. announced today the results of its strategic review of the wireless business opportunity.

We have now completed a thorough strategic review of the wireless business opportunity including the potential value of wireless in the traditional cable bundle, the rapid evolution of wireless technologies, the capital needed to build a competitive wireless network (including additional spectrum requirements), recent changes in the wireless competitive environment, and the impact that wireless would have on long-term shareholder value. When we first started looking at the wireless opportunity we saw wireless as a complementary product in a world where broadband Internet access is moving increasingly to wireless devices (smartphones, tablets, laptops, netbooks, etc). A wireless offering could give us a platform to extend our services and leverage our broadband, video, voice and content/programming businesses.

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.

We believe that a more prudent approach for us is to provide a managed Wi-Fi network that will allow our customers to extend their Shaw services beyond the home. This will achieve our objectives without risking well over $1 billion in capital expenditures on a traditional wireless network build.

Rationale for Wi-Fi

As a wireless broadband technology Wi-Fi is evolving rapidly with significant improvements in throughput, coverage and reliability. Wi-Fi technologies are now capable of providing seamless hand-off and extensive metropolitan area coverage.

Wi-Fi is in virtually all portable consumer devices and customers are actively seeking Wi-Fi hot spots to reduce data costs and improve their wireless broadband experience. The vast majority of tablets sold to date are Wi-Fi only devices. Wireless broadband is increasingly viewed as a portable and nomadic service for the consumption of media rich content and video.

Major wireless carriers worldwide are deploying Wi-Fi as means of offloading 3G/4G traffic thereby reducing network build costs, and improving capacity and coverage. We believe cable operators are uniquely positioned to take advantage of Wi-Fi.

In addition, given that Wi-Fi spectrum is free and there are no device subsidies, we can build extensive Wi-Fi coverage at a substantially lower cost relative to a traditional wireless network and still provide our customers with an excellent broadband wireless experience.

"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."

Shaw will be holding a conference call today (September 1, 2011) at 9:00 a.m. MST to discuss additional details regarding the announcement. Further details regarding the call will be issued in a separate release.

[hugh]

More details of Broadband Network will be released later today. Some pros and cons of this announcement.

It's smart because Shaw is realizing that the it can't take on Telus, Bell and Rogers and win. It's smart because an expanded WiFi network is all most people will need in the future since it gives them data and they can use VoIP for phone calls. It's smart because they don't have to spend hundreds of millions for more spectrum.

The downside is they can't offer the quadruple play of services that Telus can offer. Since many people like bundles, it puts Shaw at a competitive disadvantage.

(I'll post more details here as they come available later today)

If you'd like to discusss the cancelling of wireless please use this thread and use this thread for discussing the new WiFI initiative.

[Shaw Champ]

I think that one just has to look and read up at what happened for CableVision in NY over the past year to see where end justifies means.

[hugh]

FYI, moved a bunch of threads discussing Wireless cancellation to the thread listed in post #1.

This thread is strictly for the discussion of the new broadband WiFi initiative.

[xciton]

Great, just what I need, another 2.4GHz WiFi AP signal in my area.

[BGD360]

Exciting news. I have long hoped for a downtown-wide wi-fi service. Although it would have to be good value to have me switch all my Novus services over. As a stand alone service I might pay $10.00/mth for something like this.

[gslvanbc]

Update to previous test:

Re-did the speedtest and the results were much better:
Downsload speed upped to 10,000kbps and upload to 5,000kbps.

Range still seems limited to only about a 1/2 a block.

Shaw store staff across from the Olympic flame site are clueless about the Shaw Wifi trial. Firstly- didn't know much about the trial taking place and secondly gave incorrect answers regarding access to the ShawSecure - 1. didn't know the password and 2. thought it was only for employees.

[tux]

Are there any data usage limits on the Wi-Fi network?

It seems to me that the Wi-Fi speeds are much faster than my own Shaw residential internet plan (33% faster DL, 900% faster upload based on your results); at those speeds, they may as well replace my cable modem with hotspot access.

Also, has anyone noticed if the hotspots provide full internet access, or do they restrict the type of internet access (blocking ports or protocols, P2P networking, web-only access, that sort of thing)?

[Flash604]

Tux - The literature on it says that whatever bandwidth you use at a hotspot will count towards your home internet bandwidth limit. This bandwidth contribution does not apply during the trial.

[hugh]

Survey link is fixed. My apologies

Go here and get a chance to win an iPad2

[Berty]

In post 31 gslvanbc is mentioning wifi range of about 1/2 block.

Is that consistent with what the rest of you are finding?
How many feet/meters is a 1/2 block?

[jshel101]

The range probably depends on the hotspot. I work across the street from one Shaw wifi hotspot and I don't pick it up until I am outside of the building. Other Shaw wifi zones I have come across, I can access about 1/2 a block a way.

[Berty]

1/2 block eh? I guess my dream of wifi from Medicine Hat to Edmonton along HWY2 is a dream far far away.

[Jetranger]

That might be true for outdoor hotspots but the ones in local restaurants don't seem to work any more than about 30feet outside the buildings.

[Camera.Ken]

Hi:

I took my bike and Kindle Keyboard to 2 locations for testing in Vancouver -- on a great day for a bike ride. Trimble and Marine Drive near Locarno Beach, and downtown near the Shaw building.

At the Trimble location, I was surprised that the networks were not visible from the edge of the beach area, at a bench adjacent to the Seaside bike path. I saw no Wi-Fi signal until I moved about 30 m south to the edge of Marine Drive, at which place both networks were visible. I was able to connect to the non-secure network and get the browser pop-up. But login failed -- due to the Kindle's lousy keyboard, my complex password and lack of patience.

Downtown, I parked just north of the entrance to Shaw's office building. The results were similar to those above.