The release pegged the “purchase price of the option” at $50 million, but in the end the deal needs the approval of the Competition Bureau and Industry Canada. Rogers notes that this acquisition would maintain “its network leadership position” and “ensure our customers continue to enjoy the incredibly fast speeds and throughput they crave.” According to the release, “Shaw’s AWS spectrum holdings cover 188 million MHz POPs including 20 MHz across B.C., Alberta and Manitoba and 10 MHz in select B.C., Alberta, Saskatchewan and Northern Ontario markets.”

There were other assets bundled into this agreement. The total package is worth approximately $700 million and includes Hamilton-based Mountain Cablevision, plus would also see Shaw pay Rogers $59 million for a 33% stake in TVtropolis.

Shaw stated that the proceeds will go towards “various strategic capital investments in its core business,” including building out their Wi-Fi network in Western Canada.

Source: MarketWire & CNW

Today Shaw stated in a press release that they have “completed a thorough strategic review of the wireless business opportunity” and “we could not justify a wireless network build at this time”. The reasons are the high upfront cost for a new entrant to build out a wireless network, coupled with the incumbents coverage and their “extensive device ecosystems, deep spectrum positions and large retail networks” it would basically not pay off for their shareholders.

So what are they doing? Shaw has decided that “a more prudent approach” is to deploy a Wi-Fi network. Shaw stated the rationale for this move is that it’ll save “well over $1 billion in capital expenditures on a traditional wireless network build… 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”. So you can expect tablets and other Wi-Fi only devices.

CEO Brad Shaw said that “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. Our decision not to pursue a conventional wireless business is consistent with this strategic approach and our focus on shareholder value.”

TELUS, Rogers, Bell and the other new entrants must LOVE this news. No word on what they have planned for their spectrum licenses.

Source: MarketWire

A new report in Cartt states that Shaw is still moving forward with their wireless plans, whatever they are. Brad Shaw sent them a note that “We are on track to make announcement the end of summer… The kids’ end”… so we all can expect something official around Labour Day (September 5th).

Source: Cartt

At the CRTC’s vertical integration hearings in Ottawa yesterday CEO Brad Shaw spoke with reporters and said “We’re in certain conversations, strategically, looking at options. We’re certainly looking at LTE 4G as where technology is going but we’re still in that process… We’ll soon make an announcement, I think, over the next month”. As to seeing them bring another choice in wireless in 2012, Shaw stated that “It all depends on how we get all the pieces together and all our discussions on that”.

Source: Cartt

We let you know in January that the Vancouver and Edmonton network build-out stopped (confirmed earlier this week to be true) and now it seems the same is ringing true for their Calgary build out. Although Shaw said they’ll “slow” their wireless activities we are now hearing that an internal memo was sent to employees that a “complete halt” to its Calgary wireless build out has happened, along with acquiring any new cell sites. Apparently getting into the wireless game is a bit tougher than expected. Here’s something else we are hearing too: Shaw may be in talks with one of the other new/existing wireless carrier to merge or take over (possibly with Mobilicity or Rogers, but that’s unconfirmed).

Very interesting development.
More soon.

(Thanks tipster!)

Today, unfortunately, Shaw announced their Q2 Financial and Operating Results with Chief Executive Officer Brad Shaw giving no insight into a launch date. Actually Shaw said the whole plan is to “slow our wireless build activities”… confirming a post we wrote back in January that the Vancouver and Edmonton network build-out was placed on hold. Certainly not good for Shaw but we’re sure TELUS and the other carriers like this news.

Brad Shaw stated that “With the rapid development of wireless technology, including long-term evolution (“LTE”) options, and the dynamics within the wireless industry evolving at a swift pace, we are currently evaluating technology and strategic alternatives with respect to our wireless initiatives. We plan to slow our wireless build activities as we carefully consider all options in advance of the launch of a wireless service. We continue to focus heavily on the strength of our core business and intend to make important investments in new technology platforms, digital reclamation and broadband capacity in order to ensure we maintain our technological leadership. We are building Shaw for the future and are closely monitoring the business and regulatory environment. We are flexible and will continue to meet challenges and seize opportunities in this dynamic environment.”

Source: MarketWire

The official statement from CEO Brad Shaw stated that “With the rapid evolution of wireless technology and changing market conditions, we believe it is best to take a disciplined approach to our wireless rollout to ensure we deliver an exceptional customer experience. Accordingly, during 2011 we plan to invest approximately $150 – $200 million on this initiative and now expect to launch these services in our first major market early in calendar year 2012, approximately 3 months later than previously anticipated.”

We’ve been tipped that Shaw’s first major market will be Calgary (their head office is located there). More importantly and this will be good news for their competition is that a memo went out internally that stated their Vancouver & Edmonton network build-outs have been 100% put on hold and that no further work will be done (such as obtaining and building cell sites) until the end of August 2011, which is the end of Shaw’s fiscal year.

So it’s looking like an early 2012 wireless showdown is brewing in Calgary… possibly hotter than what we’re currently seeing in Quebec.

We’ll have more info soon.

“We remain committed to wireless and are excited about the opportunity wireless represents for our Company going forward. With the rapid evolution of wireless technology and changing market conditions, we believe it is best to take a disciplined approach to our wireless rollout to ensure we deliver an exceptional customer experience. Accordingly, during 2011 we plan to invest approximately $150 – $200 million on this initiative and now expect to launch these services in our first major market early in calendar year 2012, approximately 3 months later than previously anticipated.”

Competitors must be thrilled about this news.

Source: Market Wire

Ghose stated “Building a wireless asset may be more challenging and take longer than some may think… Shaw has publicly stated that it aims to launch wireless in 2011. However, it had also planned to launch wireless in 2009 and 2010. In our view, a widespread launch in 2011 seems challenging”.

Not sure about part of the above comments as Shaw never publicly stated they will be launching in 2009 or 2010, they formally announced a 2011 wireless launch on April 9th, 2010. Shaw CEO Jim Shaw stated on October 23rd, 2008 and again on November 15th, 2008 that “We felt it more prudent to develop our core business right now, and not divert any of our attention away from our mainstream products. It’s like you don’t want to buy the neighbour’s house when your house isn’t fixed up. It’s really about where do you put your money and at what time. And we think this is the best spot to put it in right now, and that the time will come for cellular.”

Even though Shaw seems to be going through an early rough patch… they will eventually launch their wireless service and when that date occurs there will be even more competition – specifically in bundling of all services.

Source: Cartt