Shaw Communications

Shaw Communications Inc. is a Canadian telecommunications company which provides telephone, Internet, television, and mobile services. Headquartered in Calgary, Alberta, Shaw provides home telecommunications services primarily in Alberta and British Columbia and satellite television nationally. It also operates smaller cable television systems in Saskatchewan, Manitoba, and Northern Ontario. Shaw provides mobile services through its subsidiary Freedom Mobile, under both the Freedom and Shaw Mobile brands, in areas of Alberta, British Columbia, and Southern Ontario. The company's chief competitor for home telecommunications in western Canada is Telus Communications.

Shaw Communications Inc.

Type	Public
Traded as	TSX-V: SJR.A (Class A) (voting) TSX: SJR.B (Class B) (non-voting) NYSE: SJR
Industry	Telecommunications
Founded	1966; 57 years ago (1966) (as Capital Cable Television Company, Ltd.) Edmonton, Alberta, Canada
Founder	JR Shaw
Headquarters	630 3rd Avenue SW, Calgary, Alberta , Canada
Key people	Bradley S. Shaw (CEO) Paul McAleese (President)^[1] Paul McAleese (COO, Freedom Mobile)^[2]
Products	Cable television, high speed internet, telephone, satellite television, network and specialty broadcasting, logistics tracking, radio
Revenue	CAD $5.509 billion (2021) ^[3]
Operating income	CAD $2.161 billion (2019)^[1]
Net income	CAD $986 million (2021)^[3]
Number of employees	9,500 (2020)
Parent	Shawcor (1966-1970s)
Divisions	Shaw Broadcast Services, Shaw Direct
Subsidiaries	Freedom Mobile (Shaw Mobile)
Website	www.shaw.ca

Shaw Communications logo, used from 1993 to 1997

Shaw Communications logo, used from 1997 to 2012

History

Shaw was founded in 1966 by JR Shaw as Capital Cable Television Company, Ltd. in Edmonton, Alberta.^[4] It was originally a subsidiary of Shawcor, JR's father's firm, but the business was split from Shawcor in the 1970s.^[5][6] The company changed its name to Shaw Cablesystems Ltd. (after founder and chairman JR Shaw) and went public on the TSX in 1983. The company grew during the 1980s and 1990s through acquisitions of firms including Classicomm in the Toronto area, Access Communications in Nova Scotia, Fundy Cable in New Brunswick, Trillium Cable in Ontario, Telecable in Saskatchewan,^[7] Greater Winnipeg Cablevision^[8] (serving areas east of the Red River), and Videon Cablesystems of Winnipeg (serving areas west of the Red River), which, back in 1998, had itself previously acquired Vidéotron's assets in Alberta.^[9] However, two swaps, in 1994 and 2001, with Rogers Cable have resulted in its assets being restricted to Western Canada and a few areas of Northern Ontario.^[10] In 1999, Shaw spun out its media properties into a second publicly traded company, Corus Entertainment.^[11][12] In 2001 the Moffat family sold Videon Cablesystems to Shaw.

Prior to 2003, Shaw owned cable systems in the United States previously owned by Moffat Communications, serving six communities in Florida (Eastern Pasco County, Clermont, Palm Coast, Ormond Beach, West Palm Beach and Doral), and the Houston, Texas suburbs of Kingwood, Lake Conroe and Lake Livingston. In February 2003, the Florida systems would be sold to Time Warner Cable (with the West Palm Beach and Doral systems later sold to Comcast, and the other systems spun off to Bright House Networks), while the Texas systems were sold to Cequel III, as part of its then-Cebridge Connections subsidiary (now Suddenlink Communications).^[13][14]

In 2008, Shaw entered the AWS spectrum auction with the intention of possibly becoming a wireless phone provider. The auction ended July 2008, giving Shaw Communications enough spectrum to build a wireless network in its home provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.^[15] This spectrum ultimately went unused and was sold to Rogers Communications in January 2013.^[16]

In July 2009, Shaw announced its acquisition of Mountain Cablevision; in September, Rogers sued Shaw to block the sale, citing violations of a non-compete clause. However, the suit was quickly dismissed by the Ontario Superior Court.^[17][18] The purchase was approved by the CRTC on October 22, 2009.^[19][20] The acquisition was Shaw's first cable property east of Sault Ste. Marie since the 2001 swaps with Rogers and Cogeco. Shaw's re-entry into Southern Ontario would be short-lived, as its Hamilton system would be resold to Rogers in January 2013 as part of a deal which also saw unused wireless spectrum sold to the company, and saw Rogers sell its stake in specialty channel TVtropolis.^[16]

Return to broadcasting

On April 30, 2009, Shaw announced a deal to acquire three television stations — CHWI-TV in Windsor, Ontario, CKNX-TV in Wingham, Ontario and CKX-TV in Brandon, Manitoba — from CTVglobemedia. CTV had indicated that it would shut down the stations, all of which were incurring extensive financial losses, later in the year if a buyer could not be found, and had placed them on the market at a price of just $1 each.^[21] However, it was reported on June 30, 2009, that Shaw had backed out of the deal and was declining to complete the purchase.^[22] CHWI-TV would remain on the air as is; CKNX-TV would become a repeater of London station CFPL-TV in September 2009, while CKX-TV would close down entirely in October 2009.

In February 2010, Shaw announced an agreement with the financially troubled Canwest, whereby Shaw would buy an 80% voting interest, and 20% equity interest, in the restructured entity of Canwest, pending approvals from the CRTC and others.^[23] Three months later, following negotiations with rival bidders, the company said it would purchase the entirety of Canwest's broadcasting assets, including the interests in the CW Media subsidiary partially held by Goldman Sachs Capital Partners.^[24] Canwest's newspapers were not part of the Shaw deal and were sold separately to Postmedia Network.

The acquisition was completed on October 27, 2010, after CRTC approval for the sale was announced on October 22, forming the Shaw Media division.^[25]

2012–present

In November 2012, Shaw underwent a corporate re-branding, introducing an updated logo and slogan, along with a new promotional campaign featuring animated robots (including two named mascot robots, Bit and Bud) that live in a representation of Shaw's infrastructure, depicting them as being responsible for how their services work. The campaign was designed by the Vancouver-based agency Rethink, who were also responsible for Bell Canada's beaver characters Frank and Gordon.^[26][27]

In April 2013, Shaw Business Solutions took over Enmax's Envision subsidiary, which had built a fiber-optic network throughout Calgary. The acquisition was completed for $225 million.^[28]

 

Shaw Communications logo, used since 2012

In 2014, Shaw partnered with Rogers Communications to launch Shomi, a subscription video on demand service.^[29]

In February 2015, Shaw Communications announced that they would close operations for service call centres in Edmonton, Calgary and Kelowna, and consolidate operations in Victoria, Vancouver, Winnipeg and Montreal. 1,600 of Shaw's 14,000 employees were affected by the consolidation and cuts.^[30] The company offered affected employees the option to relocate to its centralised offices, apply for a new job at their location, or leave the company with a severance package for former employees unable to relocate.^[30][31]

In 2013, Shaw attempted to begin developing an IPTV-based platform for its television services. However, after experiencing issues developing the platform, Shaw took a $55 million write-down in June 2015, and announced that it was licensing Comcast's cloud-based Xfinity X1 architecture.^[32][33] In January 2016, Shaw launched its mobile television app FreeRange TV, based on X1 infrastructure, which allows Shaw subscribers to stream selected TV channels and on-demand content.^[34][35] On January 11, 2017, Shaw launched its X1-based cable service, BlueSky, in Calgary.^[36] Shaw also launched "BlueCurve", a new suite of routers which was likewise based on Comcast's xFi platform and hardware.^[37]

Freedom Mobile, divestment of media assets

On December 16, 2015, Shaw announced its proposed acquisition of independent wireless provider Wind Mobile from its investors in a deal worth approximately $1.6 billion.^[38] The transaction closed on March 1, 2016.^[39] Under Shaw, the company was renamed Freedom Mobile in November 2016, coinciding with the launch of its 4G LTE network.^[40] The acquisition of Wind was funded by a reorganization in April 2016, which saw the Shaw Media unit transferred to Corus Entertainment,^[41] in exchange for $1.85 billion in cash and 71,364,853 class B non-voting shares of Corus.^[42] The sale did not include Shaw's 50% stake in the Shomi streaming service and CJBN-TV Kenora; Shomi was shut down in November 2016 and CJBN-TV Kenora was shut down in January 2017.^[41][43]

Acquisition by Rogers

On March 15, 2021, Rogers announced that it will acquire Shaw for $26 billion, subject to regulatory and shareholder approval.^[44] This proposed acquisition was criticized by public lobby groups like OpenMedia, as a move that would reduce national competition in the Canadian wireless communication market by removing one of the four major competitors from the market.^[45]

For the sale to go ahead, the CRTC has ordered Rogers to divest Freedom Mobile. It was reported on March 16, 2022 that Globalive, the former parent company of Freedom (formerly Wind), intends to re-acquire the wireless company for $3.75 billion.^[46] The CRTC approved the merger on March 24, 2022.^[47]

On May 9, 2022, the Competition Bureau announced an application to the Competition Tribunal to block the transaction due to its effects on the wireless market.^[48][49]

On August 1, 2022, Rogers announced that the merger is expected to be completed at the end of the year, however, on October 25, 2022, it was announced that the Rogers-Shaw merger has been rejected as proposed.^[50] On January 24, 2023, Canada's Federal Court of Appeal allowed the merger to proceed.^[51]

Other activities

Shaw was the parent of Shaw Broadcast Services (previously Shaw Satellite Services, Canadian Satellite Communications, or Cancom) and, through Shaw Broadcast Services,^[52] Shaw Direct, one of Canada's two national direct broadcast satellite providers. For many years it also owned a number of radio stations and specialty television services; these assets were later spun off into Corus Entertainment in an effort to satisfy a now-repealed CRTC policy discouraging cross-ownership of cablesystems and specialty services.

Controversy

Internet usage-based billing

In December 2010, Shaw filed complaints with the CRTC to have competing internet video services such as Netflix classified as broadcasters under Canadian law.^[53] In the same month, Shaw introduced usage-based billing on internet plans and lowered plan caps an average of 25% while introducing overage fees of $1 to $2 per gigabyte.^[54] On February 8, 2011, Shaw agreed to put a hold on usage-based billing for its services and to this date continues to not charge customers any overages for surpassing Internet data caps.^[55]

Eponymous buildings

• Shaw Court, Calgary (head office)
• Shaw Tower, Vancouver
• Shaw Centre, Ottawa
• Shaw Park, Winnipeg
• Shaw Centre for the Salish Sea not-for-profit cultural and learning centre sponsored by Shaw Communications, Sidney, British Columbia

See also

•  Companies portal

• Burning Log
• Canwest
• Classicomm
• Cybertip.ca
• List of assets owned by Shaw Communications
• Media ownership in Canada
• Telecom
• List of internet service providers in Canada

Notes

1. "Shaw Senior Leadership". Shaw Communications Inc. Retrieved April 9, 2020.
2. Hardy, Ian (April 12, 2017). "Alek Krstajicwasstepping down as CEO of Freedom Mobile". MobileSyrup. Retrieved July 10, 2017.
3. "Shaw 2021 Annual Report" (PDF). (PDF) from the original on November 1, 2021.
4. "Shaw History". Shaw Communications Inc. 2008-09-03. Retrieved 2014-11-16.
5. "Shaw business dynasty began in rural Lambton County". Wallaceburg Courier Press. 2016-01-14. Retrieved 2018-08-19.
6. "ShawCor boss's hands-off approach to energy firm leaves time for golf". The Globe and Mail. 2002-05-20. Retrieved 2018-08-19.
7. "Shaw Cablesystems receives approval from CRTC to purchase Saskatoon Telecable". Canadian Radio and Telecommunications Commission. 1987-11-25. Retrieved 2021-01-16.
8. "Shaw Cablesystems receives approval from CRTC to purchase Greater Winnipeg Cablevision". Canadian Radio and Telecommunications Commission. 1992-12-23. Retrieved 2011-02-10.
9. "Videon Cablesystems receives approval from CRTC to purchase Vidéotron's assets". Canadian Radio and Telecommunications Commission. 1998-07-22. Retrieved 2021-01-16.
10. . Shaw.ca. Archived from the original on 16 December 2004. Retrieved 2011-03-10.
11. "Canuck players plan splitting up of WIC". Variety. 18 October 1999. Retrieved 12 March 2016.
12. "Corus lines up behind Canuck Shaw's assets". Variety. 14 June 1999. Retrieved 12 March 2016.
13. . Archived from the original on 27 November 2004. Retrieved 8 July 2015.
14. . CED. Archived from the original on 24 February 2014. Retrieved 8 July 2015.
15. Post, Financial (2008-06-23). . Canada.com. Archived from the original on 2012-11-09. Retrieved 2011-03-10.
16. "Shaw hangs up on its cellular plans". The Globe and Mail. January 14, 2013. Archived from the original on 16 February 2013. Retrieved 13 January 2016.
17. "Rogers sues to block Shaw's Ontario cable buy". CBC News. Retrieved 27 March 2017.
18. "Rogers' territorial lawsuit against Shaw quashed". CBC News. Retrieved 27 March 2017.
19. (PDF). Shaw. October 22, 2009. Archived from the original (PDF) on 22 November 2009.
20. "Shaw Communications gets CRTC approval to buy Mountain Cablevision in Hamilton". Canadian Press. Ottawa: canadaeast.com. October 22, 2009.
21. , CTVglobemedia press release via TradeMarkets, April 30, 2009
22. Grant Robertson, . The Globe and Mail, June 30, 2009.
23. , CBC.ca, 2010-02-12
24. Pav Jordan (2010-05-04). "Shaw to buy Canwest TV unit". Reuters. Retrieved 2010-09-21.
25. Shaw Communications (press release) (2010-10-22). "Shaw announces acquisition of Canwest Broadcasting assets expected to close October 27, 2010" (PDF). Retrieved 2010-10-23.
26. Shaw, Hollie (2 November 2012). "Shaw robot mascots recall Bell's beavers". Financial Post. Retrieved 11 December 2013.
27. . Marketing Magazine. Archived from the original on 4 November 2012. Retrieved 11 December 2013.
28. JEFF MCINTOSH. "Shaw Communications to buy Enmax Envision for $225-million". www.theglobeandmail.com.
29. "Shomi set to go to wider audience". The Globe and Mail. Retrieved 27 May 2015.
30. De Vynck, Gerrit (February 12, 2015). . BNN. Bell Media. Archived from the original on 14 February 2015. Retrieved February 14, 2015.
31. Stephenson, Amanda (February 11, 2015). "Shaw communications relocating customer care operations; 1,000 jobs in Calgary affected". Calgary Herald. Retrieved February 12, 2015.
32. "Shaw to Trial Comcast's X1 Platform". Multichannel News. 26 June 2015. Retrieved 12 March 2016.
33. "Shaw: Why We're Testing Comcast's X1". Multichannel News. Retrieved 12 March 2016.
34. "CES 2016: Shaw Puts Comcast's X1 to Work". Multichannel News. 6 January 2016. Retrieved 12 March 2016.
35. "Shaw targets Telus with mobile app offering live TV, on-demand content". The Globe and Mail. Retrieved 12 March 2016.
36. Jackson, Emily (11 January 2017). "Shaw Communications Inc. launches Comcast's X1 TV platform to wrestle back market share from Telus". Financial Post. Retrieved 12 January 2017.
37. "ASSIA deploys service for TalkTalk, Shaw & Virgin Media debut whole-home Wi-Fi". Wi-Fi NOW Events. 2019-04-08. Retrieved 2019-10-19.
38. Dobby, Christine (December 16, 2015). . The Globe and Mail. Archived from the original on 29 January 2016. Retrieved December 17, 2015.
39. "Shaw enters wireless market with closing of Wind Mobile deal". The Globe and Mail. Retrieved 2 March 2016.
40. "Wind Mobile to become Freedom Mobile, launch faster network in Toronto, Vancouver". The Globe and Mail. Retrieved 21 November 2016.
41. "Corus Entertainment acquires Shaw Media for $2.65-billion". The Globe and Mail. Retrieved 13 January 2016.
42. "Shaw Communications completes sale of Shaw Media to Corus Entertainment". Shaw Newsroom. Shaw Communications. April 1, 2016. Retrieved April 1, 2016.
43. "CRTC's Blais raps Rogers, Shaw over Shomi". The Globe and Mail. Retrieved 18 November 2016.
44. "Rogers signs deal to buy Shaw in transaction valued at $26B". CBC News. Retrieved 2021-03-15.{{cite news}}: CS1 maint: url-status (link)
45. "$26B Rogers plan to buy Calgary-based Shaw would create Canada's 2nd-biggest telecom". CBC News. Canadian Press. 15 March 2021. Retrieved 16 March 2021.
46. "Freedom Mobile's Original Founder Bids $3.75 Billion to Buy it Back from Rogers | iPhone in Canada Blog". 16 March 2022.
47. "CRTC approves Rogers' takeover of Shaw broadcasting, but with costly conditions - National | Globalnews.ca". Global News. March 24, 2022. Retrieved April 9, 2022.
48. "Competition Bureau seeks to block Rogers-Shaw deal". CTV News. Canadian Press. May 9, 2022. Retrieved May 28, 2022.
49. "Competition Bureau seeks full block of Rogers' proposed acquisition of Shaw - News Release". Government of Canada. Competition Bureau. 9 May 2022. Retrieved 28 May 2022.
50. "Innovation minister imposes conditions on Rogers-Shaw deal, including 'expectations' for Freedom Mobile sale". Toronto Star. October 25, 2022.
51. "Court rejects Competition Bureau's appeal to block Rogers' takeover of Shaw". CBC News. January 24, 2023.
52. . Shaw.ca. Archived from the original on 7 December 2006. Retrieved 2011-03-10.
53. "Companies like Netflix should be regulated by CRTC: Shaw". The Canadian Press. The Globe and Mail. December 9, 2010. Retrieved April 11, 2014.
54. "DSLreports.com". DSLreports.com. Retrieved 2011-03-10.
55. Shaw, Gillian (2011-02-08). . Vancouversun.com. Archived from the original on 2 May 2012. Retrieved 2011-11-18.

External links

 

Wikimedia Commons has media related to Shaw Communications.

• Official website
• CRTC chart of Shaw Communications' assets