TORONTO – Despite assertions to the contrary, Shaw may not roll out its new wireless service this year. As the Calgary-based company prepares for its annual general meeting on Thursday, at least one industry analyst is predicting that a “widespread wireless launch in 2011 seems unlikely”.
“Building a wireless asset may be more challenging and take longer than some may think”, wrote Dvai Ghose, the managing director and head of Canadian research for Canaccord Genuity, in a note to investors on Monday. “Shaw has publicly stated that it aims to launch wireless in 2011. However, it had also planned to launch wireless in 2009 and 2010. In our view, a widespread launch in 2011 seems challenging.”
Ghose compared Shaw’s progress on wireless to Videotron’s (which launched its wireless service last September), noting that “Shaw has spent much less on wireless to date than Videotron”, plus the recent departure the head of Shaw’s wireless strategy, Laurence Cooke, who joined the company last summer.
Other key challenges that Shaw will face in 2011, according to Ghose, include mustering a “defence against a resurgent Telus TV”, integrating Canwest, and managing expectations regarding dividend growth and share buybacks. Given these issues, he expects Shaw shares to underperform peers in 2011, as in 2010.
– Lesley Hunter
