Canada’s mobile market is in for a shakeup, especially in Alberta and B.C. as Shaw Communications launches its new ‘Shaw Mobile’ business with an eye-popping $0 plan.
The company’s president, Paul McAleese, explained that Shaw was “happy to be the catalyst for change” during a press briefing ahead of the July 30th launch of Canada’s latest mobile player. And it looks like Shaw could be a significant catalyst with its introductory plans that massively undercut the competition.
Shaw Mobile will start with two plans: ‘By The Gig’ and ‘Unlimited Data.’ By The Gig plans cost $0 per month and include unlimited nationwide talk and text. Plus, customers can buy 1GB of data for $10 if they need it — that data rolls over for up to 90 days if they don’t use it all in one billing cycle.
As for the Unlimited Data plan, it costs $45 per month for 25GB of data, followed by unlimited usage at a throttled speed. There’s a $10 add-on for U.S. and Mexico roaming options as well.
Plans come with caller ID and voicemail and have a $20 activation fee.
Compared to what competitors are offering — about $35 for most unlimited talk and text plans and $85 for most 20GB unlimited plans — it seems too good to be true.
Understanding Shaw Mobile’s network
Shaw president Paul McAleese discusses availability of mobile devices with Shaw Mobile.
As with anything, there are a few caveats to be aware of. First, Shaw Mobile’s best prices are only for its internet customers. The regular rates are higher; $15 per month for the By The Gig plan — which is still quite good — and $85 for the Unlimited Data plan. One home account can add up to six $0 lines.
Shaw Mobile relies on the company’s rapidly expanding gigabit wireline internet. Mobile customers will use Shaw’s in-home Wi-Fi service, the company’s network of Wi-Fi hotspots and Shaw’s LTE network.
With this in mind, it isn’t a surprise that Shaw Mobile is only available in Alberta and B.C. for now. However, the plans are nationwide and will work in other provinces with Shaw Mobile’s roaming partners. It’s worth noting the Unlimited Data plan works similar to Freedom Mobile in that the 25GB allotment is available on Shaw’s network while customers outside of that (on ‘Shaw Nationwide’) have a 2GB limit.
In a sense, that means Shaw Mobile’s network isn’t a traditional mobile data network, although it does have one to fall back on. For example, a typical user would have access to text and calling over their Shaw internet service. If they leave home and go to a mall or library with Shaw’s ‘Go WiFi’ service, their phones will work on that. When there isn’t a Wi-Fi network available, Shaw Mobile phones can use the company’s LTE.
It’s a simple strategy and one that could prove effective. McAleese said Shaw had watched and learned from U.S.-based cable companies that launched similar networks. However, according to McAleese, a key difference is that Shaw is a facilities-based provider and actually has a mobile network. Many of the U.S. companies had to rely on wholesale mobile network, which made things less economical.
McAleese also spoke about Shaw’s Fibre+ internet, which has seen significant growth recently. Shaw says its Fibre+ Gig network, which offers speeds of up to 1Gbps, is now connected to over 1 million more homes than its next closest competitor.
As for Freedom Mobile, it appears the regional carrier will continue as is. McAleese explained that the company views the two as complementary.
The little details
McAleese takes reporters on a virtual tour of Shaw’s new Market Mall location in Calgary.
For those wondering why Shaw decided to launch its new mobile service in the middle of a pandemic, McAleese said this was the best time.
On the one hand, COVID-19 hit Western Canada hard. McAleese said that hundreds of thousands are recently unemployed, and there’s a lot of financial stress. From that perspective, offering high-value plans like the ones in Shaw Mobile makes a lot of sense.
On the other hand, the Canadian government just released its first report on the progress — or lack thereof — in its goals to reduce cellphone costs by 25 percent in Canada. Shaw Mobile meets and surpasses the government’s goal in terms of the monthly cost.
McAleese also noted that the plan pricing available at launch would be “introductory.” He didn’t say how long it would be available but indicated it wasn’t permanent and could change down the line.
Further, Shaw Mobile will offer devices, including the latest iPhones and Samsung phones. McAleese confirmed Shaw would provide subsidies for the devices, but didn’t speak to exact pricing.
However, McAleese expects the majority of its customers to bring their own devices. Like other carriers, Shaw Mobile requires a SIM card and will support eSIM devices too. For now, McAleese says new customers will have to visit a Shaw retail location to make sure their phones get set up correctly for the network.
That includes 19 Shaw retail stores across B.C. and Alberta with 12 new stores opening in the coming weeks and over 120 locations with Shaw’s national retail partners, including Walmart and The Mobile Shop.
A new store and fresh new brand
Speaking of stores, McAleese took press on a virtual tour of the new Shaw store at Calgary’s Market Mall. Shaw’s stores still have a focus on TV — McAleese describes it as the “heartbeat” of what Shaw does — but also has space for internet and mobile products.
Shaw says it designed the new spaces for exploration, learning and interactivity but also kept physical distancing in mind. The company says it will continue to adhere to health and safety protocols.
Additionally, Shaw is refreshing its brand with more life and activity. That includes a new ‘Brighter Together’ call to action and new ads highlighting the company’s new services.
All in all, Shaw Mobile should prove to be an exciting new choice for customers in Western Canada. Although limited in some ways, the value of the plans is clear. Existing Shaw customers will likely find it an appealing offer and, hopefully, it spurs greater competition in Canada’s mobile market.
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
