Sunday, April 18, 2010

Shaw Communications Getting Into The Mobile Phone Market?

Yesterday I was listening to a radio show called "Get Connected." It is a show about technology. Not just electronics, computers, and stuff like that. But the one segment they were talking about Shaw Communications. We all know that Shaw started out as a cable company, then they expanded to Internet, then home phone service. They said that Shaw is going to get into the the wireless/cellphone/mobile phone market next year. They said they need to do it to remain relevant as a company that offers it all. It is a step they need to do so they can offer a bundle that they never would have been able to offer before. Other companies like Rogers, Bell, and those bigger companies can bundle all of their services together which appeal to the consumer and customer.

"A recent article from the Globe and Mail says that Shaw, better known for their cable services and high speed internet, is considering the adding of cellular phones to their product lineup.

In an interview with a Globe and Mail reporter, president Jim Shaw said, “When the company does include cellphone service in product bundles, it will likely be a rebranded “white label” product from Bell Canada or Rogers Communications Inc..

“We’ve always said that we’re going to focus on the Digital Phone product first and then we’ll give some due consideration to [mobile phones],” he told the analysts. “It’s a ‘nice to have’ but not a ‘have to have’ [product],” he said.

Mr. Shaw said his firm has the opportunity to “white label, where we would attach with an existing [cellular] carrier — it could be a Rogers or a Bell — and brand it Shaw."

Now there are the companies that do just straight cellphones don't have anything to lose as they don't have a stake in the other parts of the communications market. But Shaw has a lot to either gain or lose. Shaw could go bankrupt if this doesn't work. But is this a good move? Or is it step they need to do? Who knows, but they need to do something to remain relevant in the communications business. They say they might not be relevant in five years. One thing is for sure that it will be interesting to see how it goes, where it goes, and how far they go with this.

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