Shaw Communications Inc. says it is terminating about 400 employees, raising the price of its cable and residential Internet service by $3 per month in May, and selling U.S. assets in an effort to reduce costs.

Calgary-based Shaw reported last week a net loss of $74.3 million on increased revenue of $472.2 million for its second quarter ended Feb. 28. This compares to net income of $189.1 million on revenue of $357.3 million for the same period last year.

Shaw’s net loss for the year to date stands at $126.7 million, compared to a profit of $156.1 million for the previous year.

Contributing to Shaw’s loss was increased spending on the cable systems it acquired from Moffatt Communications last year and construction cost overruns as it consolidated buildings.

The company says it has taken a $4.6-million provision to cover the severance costs for the employee terminations.

Shaw says it will sell its U.S. cable systems – as they are no longer strategic – and use the proceeds to reduce debt. The company says it intends to concentrate its focus and capital spending in Western Canada.

The rate increases apply to tiers and bundled packages. They will not affect the 200,000 customers who subscribe to basic cable only.

In other company news, Shaw Cablesystems G.P. is being sued by At Home Corp. for approximately $65 million US.

Shaw and At Home had a contract for At Home to provide high-speed residential Internet service to Shaw subscribers until mid-March 2003. In September 2001, California-based At Home filed for bankruptcy.

The majority of the damages sought by At Home relate to the period after which At Home filed for bankruptcy and ceased to provide services. Shaw has filed a defence and counter-claimed against At Home for more than $120 million US for breach of contract.

Shaw says it spent more than $1 billion over two years on infrastructure to launch its own high-speed Internet service.

Shaw Communications Inc. provides cable television services, high-speed Internet access, DTH (Star Choice) satellite services, satellite distribution services and Internet infrastructure services.