Shaw and Cisco to set up Wi-Fi network in Western Canada

CALGARY – Shaw Communications (TSX:SJR.B) and Cisco (Nasdaq:CSCO) have struck a deal to set up an extensive and advanced Wi-Fi network in Western Canada to provide broadband wireless services.

The move, announced Monday, comes about two weeks after the company pulled the plug on plans to launch a wireless phone service, favouring instead a less risky venture into Wi-Fi.

In a joint release, Shaw and Cisco said late Monday the next-generation network will allow Shaw customers to connect Wi-Fi enabled devices such as tablets, smartphones and computers to thousands of access points across Western Canada.

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Financial terms of the deal were not revealed.

“Canadians’ use of smartphones and tablet devices has grown exponentially over the years and more than ever, consumers are relying on Wi-Fi to explore the Internet, connect with loved ones and enjoy entertainment,” Shaw president Peter Bissonnette said in a release.

Kelly Ahuja, general manager of Cisco’s service provider group, said “Shaw’s investment in a true next-generation Internet network will enable it to drive exciting new communication and entertainment services, which will create new revenue streams for the company.”

The new Shaw Wi-Fi network is set to begin operating in late 2011, with a customer launch next spring.

Shaw Communications is Canada’s second-biggest cable TV operator and and also has satellite TV operations.

The company’s media unit operates one of the largest conventional television networks in Canada, Global Television, and 18 specialty networks including HGTV Canada, Food Network Canada, History Television and Showcase.