Telus Predicted to Become Canada’s Second-Largest Wireless Carrier This Year

by Istvan Fekete on April 3, 2013

The Canadian wireless landscape is about to change, but don’t expect any major reshuffles: Given the level of competition in the Canadian wireless market industry, analysts such as Convergence Consulting Group Ltd. only predict that Telus will become Canada’s second-largest carrier, surpassing Bell.

The Consulting Group’s annual study of telecom and media trends, “The Battle for the North American (U.S./Canada) Couch Potato,” forecasts that the most fierce competition will be among the two incumbents who share the same wireless network: Bell and Telus.

Looking back to last year, Bell and Telus ended 2012 very close in terms of total subscribers, with Bell maintaining the lead by 11,000 subscribers. But, as the study points out, this is about to change this year.

“Telus’s focus is both on the postpaid and the prepaid [customer]. It’s been highly price-competitive,” Convergence president Brahm Eiley said. “Bell has also been very innovative on its pricing, but it has had an eye to maximizing ARPU [average revenue per user].”

According to the Convergence study, Telus is about to win the battle for the second spot in the Canadian wireless market, adding 350,000 subscribers this year, growing to 8.02 million wireless subscribers, up from 7.67 million recorded last year.

Bell, on the other hand, is predicted to slow down in growth and add only 279,000 subscribers to its total base of 7.96 million wireless subscribers by the end of 2013.

Rogers will maintain the No. 1 spot this year as well, with a market share of 33%, or 9.56 million wireless subscribers, and the incumbents will collectively control 88% of the market, down from 91%, as noted by Telus’ blog post.

Does this mean new entrants will gain traction? The study apparently suggest they will.

From the market analyst firm’s perspective, Telus will gain traction due to a shift in strategy: While Bell stopped enrolling new subscribers to its Solo discount last year, and Wind Mobile is shifting away from prepaid, Telus is betting on the growth of the prepaid market. The carrier suggested that prepaid is essential for the industry’s next wave of growth in the competition for teenagers and tweens.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

{ 1 comment… read it below or add one }

Mick August 12, 2013 at 10:47 pm

1)Verizon

2)Rogers/Telus/Bell

Work in the Canadian wireless industry? Your job is about to get very stressful and demanding.

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