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Shaw Communications Upped to Hold on Prudent Takeovers
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On Jun 20, 2016, Zacks Investment Research upgraded Canadian cable TV behemoth, Shaw Communications, Inc. , to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell).
Shaw Communications offers wireline telephony, high-speed Internet and video services to residential and business enterprises through its fiber optic, WiFi and cable TV services. The company consistently strives to expand its WiFi network.
Entry into the Canadian Wireless Market
Shaw Communications has recently forayed into the Canadian wireless market with the acquisition of the 100% interest in Mid-Bowline Group Corp., the parent company of WIND Mobile Corp., for an enterprise value of approximately C$1.6 billion (around $1.16 billion). The acquisition provides Shaw Communications the necessary economies of scale, crucial spectrums, a strong retail distribution chain and an installed base of wireless networks. With the WIND Mobile buyout in its kitty, we believe that Shaw Communications will be poised to offer quad-play wireline telephony, high-speed Internet, video and wireless services, competing with large telecom operators in the country.
The Canadian wireless market is predominantly controlled by three big players – Rogers Communications Inc. (RCI - Free Report) , TELUS Corp (TU - Free Report) and BCE Inc (BCE - Free Report) . Together, these three firms control around 90% of the total market. Despite the fact that WIND Mobile is the fourth-largest wireless operator, its current scale of operations is considerably behind the three wireless giants.
Other Factors to Consider
This January, Shaw Communications launched its mobile TV platform – FreeRange TV. The service is based on Comcast Corp.’s X1 platform and is increasingly gaining traction. Using the powerful X1 platform, the company aims to bolster video experience and offer next-generation services to customers. Further, the company is looking to gain from the huge scale of Comcast’s X1 platform. This should also help to check customer churn over the long run.
Notably, the business services segment is a growing market for telecom operators and Shaw communications is leaving no stones unturned to gain some ground in this segment. At present, its SmartWiFi and SmartSecurity Service offer the benefits of managed WiFi and network security to small- and medium-scale businesses (SMB). Additionally, the service provides seamless integration of a company’s wired and wireless networks and helps employees stay connected to ensure optimum utilization of a firm’s network.
Costs Still a Concern
Rolling out new brands and advertising promotions are likely to push expenses, going ahead. The company also expects additional network fees in the forthcoming quarters. Increasing costs could hurt Shaw Communications’ margins, going forward.
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Shaw Communications Upped to Hold on Prudent Takeovers
On Jun 20, 2016, Zacks Investment Research upgraded Canadian cable TV behemoth, Shaw Communications, Inc. , to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell).
Shaw Communications offers wireline telephony, high-speed Internet and video services to residential and business enterprises through its fiber optic, WiFi and cable TV services. The company consistently strives to expand its WiFi network.
Entry into the Canadian Wireless Market
Shaw Communications has recently forayed into the Canadian wireless market with the acquisition of the 100% interest in Mid-Bowline Group Corp., the parent company of WIND Mobile Corp., for an enterprise value of approximately C$1.6 billion (around $1.16 billion). The acquisition provides Shaw Communications the necessary economies of scale, crucial spectrums, a strong retail distribution chain and an installed base of wireless networks. With the WIND Mobile buyout in its kitty, we believe that Shaw Communications will be poised to offer quad-play wireline telephony, high-speed Internet, video and wireless services, competing with large telecom operators in the country.
The Canadian wireless market is predominantly controlled by three big players – Rogers Communications Inc. (RCI - Free Report) , TELUS Corp (TU - Free Report) and BCE Inc (BCE - Free Report) . Together, these three firms control around 90% of the total market. Despite the fact that WIND Mobile is the fourth-largest wireless operator, its current scale of operations is considerably behind the three wireless giants.
Other Factors to Consider
This January, Shaw Communications launched its mobile TV platform – FreeRange TV. The service is based on Comcast Corp.’s X1 platform and is increasingly gaining traction. Using the powerful X1 platform, the company aims to bolster video experience and offer next-generation services to customers. Further, the company is looking to gain from the huge scale of Comcast’s X1 platform. This should also help to check customer churn over the long run.
Notably, the business services segment is a growing market for telecom operators and Shaw communications is leaving no stones unturned to gain some ground in this segment. At present, its SmartWiFi and SmartSecurity Service offer the benefits of managed WiFi and network security to small- and medium-scale businesses (SMB). Additionally, the service provides seamless integration of a company’s wired and wireless networks and helps employees stay connected to ensure optimum utilization of a firm’s network.
Costs Still a Concern
Rolling out new brands and advertising promotions are likely to push expenses, going ahead. The company also expects additional network fees in the forthcoming quarters. Increasing costs could hurt Shaw Communications’ margins, going forward.
SHAW COMMS-CL B Price
SHAW COMMS-CL B Price | SHAW COMMS-CL B Quote
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