Monday, April 18, 2011

Telecom: Loss of wireless chief fuels uncertainty over Shaw launch


By Jamie Sturgeon | Global News | Jan. 06, 2011

TORONTO — Laurence Cooke, the man heading up Shaw Communications Inc.'s wireless operations, is expected to leave the company imminently sources say, throwing further uncertainty over Shaw's highly anticipated push into mobile and perhaps leading to more delays.

"It's not official yet, he's negotiating his package," a source close to the matter said asking for anonymity.

Mr. Cooke was hired six months ago to lead the Calgary-based cable and Internet firm's wireless initiative, a new business it has been pursuing since acquiring airwave licences from Ottawa in mid-2008.

A spokesperson for Shaw was not immediately available for comment.

Sources said Mr. Cooke has cancelled a planned trip to the International Consumer Electronics Show in Las Vegas and a host of other meetings.

The main reason for Mr. Cooke's departure is personal, sources say, with his wife and children in Toronto and the executive based out of Shaw's headquarters in Calgary. However, others suggest he has grown dissatisfied with the position.

Mr. Cooke's departure is the latest in a string of unexpected management changes at Shaw. In October, the firm announced chief executive Jim Shaw would be leaving the firm this month. But an unseemly dispute with investors in Vancouver in November forced Mr. Shaw out early.

Younger brother Bradley Shaw has taken over as expected while wireless duties likely fall back to Michael D'Avella, the long-time executive that oversaw the new strategy until Mr. Cooke arrived in late June.

Shaw, the country' s largest cable company with 3.4 million subscribers, has taken a longer time than other new entrants to dive into Canada's $16.8-billion mobile market. It has led to speculation that the company has struggled to put a clear strategy in place.

Quebec-based Videotron for example launched in September, two years after acquiring rights to spectrum covering the province.

Many analysts now anticipate Shaw launching wireless in September, but others have doubts that Shaw has dedicated enough money an energy to the venture, which is occurring concurrently with the company's integration of the broadcasting assets of Canwest Global Communications Corp., acquired for $2-billion last year.

Videotron has spent roughly $600-million on its venture. Shaw meanwhile has committed about half of that. Sources close to Shaw said this week a September launch date would be "aggressive."

On previous conference calls Shaw hinted at a launch as early as 2009, shortly after it acquired $189-million worth of spectrum spanning Western Canada. Last spring, Shaw management suggested a launch in early 2011 only to again later hint at another delay.

The loss of Mr. Cooke, a former Bell Mobility executive with experience in deploying networks in the U.K. and South Africa, may mean plans are push back once more.

"It doesn't mean you can't launch wireless in September, but it's awfully difficult if your head of wireless has just left," Dvai Ghose, analyst at Canaccord Genuity said.



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