Shaw Achieves Milestone

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Canada-based Shaw Communications Inc. (SJR) teamed up with Alcatel-Lucent, S.A. (ALU) and achieved a record network speed of nearly 400 Gbps over an existing optical link which supports huge network traffic.

The test was carried using Shaw Communications’ fiber optic network between Calgary and Edmonton in Alberta, Canada covering nearly 400 kilometers. So, implementing Alcatel-Lucent’s technology, the company achieved a record 400 Gbps speed.

Increased usage of smartphones and tablets coupled with higher downloads of HD movies have stimulated demand for data usage and faster network speed. Consequently, to suffice the increasing need of the data hungry customers, the telecom companies are continuously upgrading their network services from 2G to 3G and have now advanced to 4GLTE or DOCSIS technology.

Keeping such factors in mind, Shaw Communications is also deployed high-speed DOCSIS 3.0 network in several western Canadian markets under the brand name of “Nitro Internet Service.” This technology offers 100 Mbps download speed. Nitro Internet Service is the fastest Internet service available in Canada.

Therefore, deploying the tested technology will allow users to attain speed of nearly 17.6 Tbps, which will support 266 million voice calls or the transmission of 88 Blu-ray Discs in a split second.

As of Nov 30, 2012, Basic Cable customer base was 2,166,536, reflecting a net reduction of 23,912 customers from the previous quarter. Internet customer base stood at 1,902,385, reflecting quarterly net addition of 5,956 customers.

The Canadian market is mainly dominated by BCE Inc. (BCE) and Rogers Communications Inc.(RCI). So, the rollout of such a high-speed technology will not only improve customer base but will also safeguard the company’s position against such the big industry players.

Currently, Shaw Communications has a Zacks Rank #3 (Neutral).

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