Shaw scraps wireless network rollout plan

2 Sep 2011

Canada’s largest cable television provider Shaw Communications has ditched its plan to build a mobile network, citing the level of investment required to compete with existing cellcos as the reason for its change of heart. ‘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,’ the cableco said in a news release. Shaw acquired wireless licences at a cost of CAD190 million (USD183 million) in 2008, but has long prevaricated over network deployment after failing to reach agreement over network sharing with Rogers Communications. Shaw has now said that it plans to build out a Wi-Fi network instead to offer mobile broadband internet services at a lower financial cost to the company.

Canada, Shaw Communications