Shaw ends membership in cable industry by Catherine McLean
Source : Globe & Mail
group says it would be better off on its own
December 7, 2005Shaw Communications Inc. severed its ties yesterday with the Canadian Cable Telecommunications Association (CCTA), saying its goals and interests differ from those of other members.
According to Calgary-based Shaw, the company would be better off if it didn't have to seek industry consensus and instead mapped out its own strategies.
"As the telecommunications and broadcasting industries evolve, it is becoming increasingly clear that the member companies of the CCTA have divergent interests and differing strategic objectives, making it difficult to build industry-wide consensus on various issues," Shaw said in a press release.
The CCTA represents 77 cable firms ranging from small players to giants such as Rogers Communications Inc. and Cogeco Cable Inc. Among the organization's roles is to represent the industry's views in front of regulatory bodies.
In a press release, the CCTA said nothing has changed, although it regrets Shaw's resignation.
The organization's board said "it is business as usual following the resignation of Shaw Communications Inc."
It added "while individual strategies in a rapidly changing communications environment may differ, the industry remains committed to working with all stakeholders on key priorities" like phone service.
Shaw's pullout isn't sending other members for the door.
Rogers spokeswoman Jan Innes said the Toronto-based company will remain a CCTA member. "We think it's important for the industry to work together," she said.
The resignation of Shaw comes just over four years after Vidéotron Ltée withdrew its membership.
"It means [CCTA] representation is a little less universal than it was," said Lis Angus of telecom consultant Angus TeleManagement Group.
"It obviously gains its strength and financial resources from some of the larger companies and it will be a loss for the CCTA in that sense."
However, she added that CCTA membership is still important for small cable firms that "would have no voice if they didn't have the CCTA. The CCTA plays a very important role for them, not just in regulatory submissions, but also in sharing resources and experiences."
Ms. Angus said Shaw may follow Vidéotron's lead and work with other cable firms on some issues in the future where there are common interests.
