Shaw to launch wireless services in 2011 (canceled) - Page 3 - Canadian TV, Computing and Home Theatre Forums
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post #31 of 37 (permalink) Old 2011-09-01, 12:16 PM
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I think everyone overpaid for spectrum in 2008 so I doubt any of the companies could resell for as much as they paid.



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post #32 of 37 (permalink) Old 2011-09-01, 01:22 PM
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Shaw can't sit on the spectrum indefinitely, or it will be revoked, and they can only sell to a fellow new entrant, which severely limits their options. Since I don't think Videotron or Eastlink would be interested in Western Canada, that leaves only Mobilicity, who would only want the urban spectrum, and Wind.
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post #33 of 37 (permalink) Old 2011-09-01, 02:36 PM
 
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Originally Posted by TorontoColin View Post
Shaw can't sit on the spectrum indefinitely, or it will be revoked, and they can only sell to a fellow new entrant, which severely limits their options. Since I don't think Videotron or Eastlink would be interested in Western Canada, that leaves only Mobilicity, who would only want the urban spectrum, and Wind.
The restriction on selling only to other new entrants expires after 5 years as I recall... so in 2013 they could sell to one of the Big 3.
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post #34 of 37 (permalink) Old 2011-09-01, 08:33 PM
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That is true, except that after five years if they haven't used the licenses they are revoked and re-auctioned. This was done this way for precisely this scenario; so a company can't buy spectrum and sit on it until they can sell it to the incumbents.
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post #35 of 37 (permalink) Old 2011-09-03, 09:37 AM
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I'm still trying to figure out what the ROI on Shaw's wifi plan is. And if Shaw can't make money on wireless, with access to millions of existing customers to upsell to, how can a company like Mobilicity make any money starting from scratch? I also think it nixes the likelihood of Shaw picking up Mobilicity assets to kickstart their own service once they head down this wifi route.
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post #36 of 37 (permalink) Old 2011-09-03, 10:12 AM
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Mobilicity only provides urban service, so they only put up towers in areas with high concentrations of potential customers. Shaw would be expected to cover rural areas too. A better comparison would be Wind, who plan on eventually offering rural coverage as well.

I think the problem Shaw faced was that they were so disastrously late to this party. Shaw took their sweet time sorting this out, and by now Mobilicity and Wind are firmly entrenched in Calgary, Edmonton, and Vancouver. If Shaw were to build their network now, they would have to offer similar rates to those two, as they'd be offering similar handsets and their network would almost certainly be weak to start. I think they'd have difficulty attracting customers, and they'd have razor thin margins on the ones they did attract.

Unfortunately for Shaw, they don't face the same competitive environment as Eastlink, for example, who currently have no new entrants operating in their market and only anticipate the arrival of Wind, so they can afford to take their sweet time.

The wifi network idea is interesting. If they can build a solid network, they can offer data only devices, which bring the highest margins anyway, like tablets and laptops. The spectrum is free, and I'd bet the equipment is cheaper too.
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post #37 of 37 (permalink) Old 2011-09-04, 01:11 AM
 
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1. I am truly disappointed that Shaw has chosen not to launch a mobile telephony service. I was thinking of switching from Telus but now I am only considering MTS.
2. I hope that Shaw will launch a WiFi powered mobile (smart)phone product that will work with its wifi network rollout.
3. Is there any talk of a Shaw branded rual internet service outside of its cable footprint?
4. Would Shaw purchase Wind or Mobilicity?
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