CRTC: Broadband and Wireless Gaining Momentum in Canada

by Gaurav Kheterpal on July 29, 2011

CRTC”s annual ‘Communications Monitoring Report‘ for year 2010 is now out and it paints a bright future for broadband and wireless communication in Canada. Most significantly, the report indicates that the number of Canadians subscribing to mobile wireless services grew by 8.5 per cent during 2010, reaching a total of 25.8 million subscribers.

The report also indicates that competition from new wireless providers led to a $1 reduction in the average Canadian cellphone user’s monthly bill last year. Average carrier ARPU fell from $58.81 per month in 2009 to $57.86 per month in 2010. CRTC says this decline is due to the “competitive presence” of the four new wireless providers that launched last year — Wind Mobile, Public Mobile, Mobilicity and Videotron.

Interestingly, the new wireless providers accounted for only “approximately 2% of the wireless subscribers”.

Rogers continues to hold fort as Canada’s largest wireless carrier with 37% market share. Bell (29%) and Telus (28%) seem evenly matched for the remaining two podium positions. CRTC says the emergence of new low-cost ‘unlimited everything’ carriers has led to a decline in the incumbent ARPU. Despite holding only two percent of the wireless market share, the new entrants managed to capture 25 per cent of new wireless subscriptions last year. WIND Mobile is a case in point as it added 39,000 new mobile phone subscribers in its latest quarter and staked its claim to be the “fastest growing wireless carrier in Canada”.

On the revenue front, the wireless market accounted for 43% of total telecommunications revenues ($18 billion). Rogers grabbed the lion’s share with 39% revenue market share, followed by Bell (28%) and TELUS (27%). New wireless providers contributed only 1% of the total wireless revenue in 2010.

The broadband segment grew by 9.2% to nine million — a refreshing change from the modest 6% growth in 2009. CRTC said that the average residential broadband user downloaded 14.8 gigabytes per month. Broadcasting revenues for radio and television increased 8.9% to $15.7 billion. Pay and specialty television continued its explosive growth pattern as revenues grew 11.1 per cent. However, other new technologies, including personal video recorders, Internet TV, and video-on-demand, failed to attract customers and their market share declined.

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Written by: Gaurav Kheterpal. Follow TheTelecomBlog.comby: RSS,TwitterFacebook, or YouTube.

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