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Ottawa, 16 June 2011

By E-mail
Jean Brazeau
Senior Vice President, Regulatory Affairs
Shaw Communications Inc.
40 Elgin Street, #1400
Ottawa, Ontario
K1P 5K6

Re: Shaw Communications Inc. application to eliminate conditions of licence pertaining to structural separation (Our file : 2011-0627-9)

Mr. Brazeau,

This letter is in reference to Shaw Communications Inc.’s (Shaw) application dated 1 April 2011 to have the conditions of licence (COL) related to structural separation eliminated from the licence of its direct-to-home (DTH) service, Star Choice Television Network Incorporated (now known as Shaw Direct).

The Commission notes that the COLs in question state, among other things, that Shaw Direct will maintain sales, marketing, customer service and afiliate relations functions and personnel that are separate and independent from those of Shaw Communications Inc. (the Shaw cable distributor) and Canadian Satellite Communications Inc. (the Shaw satellite relay distribution undertaking (SRDU) now known as Shaw Broadcast Services).

The Commission notes that in Broadcasting Notice of Consultation 2010-783 (the vertical integration proceeding), some parties commented that they are dependent on SRDUs for the delivery of services that they distribute to their subscribers and requested that the Commission impose measures to ensure that SRDUs do not abuse their market power. The Commission notes, as a result, that structural separation measures may be considered for vertically integrated broadcasting distribution undertakings in the context of the vertical integration proceeding.

The Commision is of the view, based on the above, that it would be premature to issue a decision on Shaw’s application to eliminate COLs related to structural separation. Consequently, this application is suspended until a decision is rendered in the vertical integration proceeding.


Robert A. Morin
Secretary General

c.c. David Lewis, Free HD Canada
Malcolm Knox, Allarco Entertainment 2008 Inc.
Chris Edwards, Canadian Cable Systems Alliance Inc,
Robert Hersche, Saskatchewan Telecommunications,
Lecia Simpson, TELUS

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