3.0 Industry Analysis:
Telecommunications is the world 's major scheme that is encircled jointly by multifaceted networks, phones, mobile phones and internet-linked PCs, the global system shake practically all of us. Over the past era, the industry has been brushed up in a rapid innovation and deregulation. It can be seen around the world that government’s monopolies are now privatized and they face a surplus of new competitors. Basic telephone calls remain to be the industry 's main revenue creator, but network technology is altering. Digital Subscriber Line (DSL) is the main broadband telecom technology - forerunners in the new era. The fastest evolution happens from services supplied over mobile networks. In general, industry …show more content…
Capital investment is projected to be roughly $850 million for the Business Network Services, Buyer, and Media sections and nearly $130 million for the Commercial Infrastructure Assistances section. The Company expected a Canadian to U.S. currency exchange rate of 1.31:1 on capital ventures denominated in U.S. currency. In 2016 the Shaw predicts a free cash flow to remain among $665 and $680 million, demonstrating a year-over-year progress of 2 to …show more content…
in which Property, Plant and Equipment, intangibles and Goodwill are the most important ones. From 2014 to 2015 PPE has been increased by almost 15% from 3652 MM to 4220 MM. So this increase signifies that Shaw is doing construction of new assets or upgrade of existing assets. Intangible assets are mainly for Broadcast rights, licenses, program rights, Wireless spectrum licenses etc .
Analysis suggests that Rogers is one of the most comparable firm for Shaw communication because Rogers is in Cable Network as well as mobile wireless business. Shaw was mainly in Cable network business but gradually moving towards wireless platform. Moreover, they both are working together to provide subscription based video on-demand services.
5.0 Business/Operating Risks:
From appendix XXX, it is found that telecommunication industry is massively regulated industry. There are number of risk factors in the industry which can be grouped into five major risks. High competition and technology risk is most fierce in this industry which is followed by financial risks, regulatory risks, Data and security risks and supply chain disruption risks. Shaw also faces the similar risks. Apart from these, economic conditions, litigations, satellite failures, Network failure, unionized labour also pose certain amount of risks to Shaw 's operations