Shaw Communications (TSX:SJR.B)(NYSE:SJR) has combined the ability to customize mobile data requirements through two rate plans. Shaw Mobile is a powerful example of how facilities-based service providers can compete and innovate to deliver true wireless affordability.
As Shaw expands the company’s retail presence, Shaw Mobile is now available in 24 Shaw retail locations and, combined with the company’s national retail partner stores, is available in over 140 locations in Alberta and British Columbia. Further, Shaw’s Freedom Mobile continues to be available in over 700 retail locations.
Consistent and stable performance
In fiscal 2020, Shaw’s wireline business delivered another year of consistent and stable performance. The company improved margins in the face of COVID-19 adversity. As customers moved from offices and classrooms home, Shaw’s extensive fibre+ network was a true workhorse in maintaining these critical connections without interruption.
In the second half of fiscal 2020, Shaw experienced a dramatic increase in data traffic by up to 50% and extended peak hours of usage. However, years of network-related investments, including Shaw’s industry-leading mid-split program, meant the company was well prepared to handle the surge in demand.
In fact, not only did Shaw maintain the company’s high-quality network performance in fiscal 2020, but it also introduced even faster internet speeds to customers with the launch of Shaw fibre+ gig internet to over 99% of the company’s wireless customer footprint in western Canada.
Digital-first organization
Long before Shaw entered this new environment where social distancing is needed, it appears that the company recognized that it needed to evolve toward becoming a digital-first organization. Hence, Shaw continued to advance initiatives that quickly became a strategic differentiator for the company.
A key tenet of this strategy was to drive the adoption of customer self-install, which increased significantly, reaching 79% in the last quarter of fiscal 2020 compared to 45% in the prior year, allowing new and existing customers to get the latest broadband technology from Shaw without having to schedule an appointment.
Smart suite product offering
Overall, Shaw’s business division encountered new challenges in fiscal 2020 as businesses across the country were faced with a difficult environment due to the pandemic. Shaw’s role as a trusted advisor along with the strength of the company’s network and smart suite product offering, including new services to meet the demands for more robust work from home solutions, reinforce the company’s strong position in the market.
Ability to deliver growth
Additionally, Shaw has successfully demonstrated the resilient nature of the company’s business and agility in operating in this environment. Shaw has also demonstrated the ability to deliver growth throughout one of the most challenging years in the company’s history.
Shaw’s company founder, JR Shaw, who passed away in March of fiscal 2020, ingrained an unwavering commitment and passion in his company’s culture to provide an exceptional customer experience. It appears that he provided stewardship, guidance, and insight that has helped propel the business forward.
As Shaw embraces a new customer environment caused by the pandemic, Shaw appears set to continue to enhance the customer experience by leveraging resources. Shareholders are thus likely to do very well.
