The pie has grown a little bit since ’01 and wireless carriers are pigging out

The Canadian Radio-television and Telecommunications Commission has released its third of five annual reports it is scheduled to deliver on the health of telecommunications competition.

The telecom pie is getting bigger, but only by inches. Last year, total revenues were approximately $32.2

billion, less than one per cent higher than revenues in 2001. The big winners were the wireless and high-speed Internet providers, who experienced double digit growth.

Incumbent telecommunications companies remain dominant in the local market, collecting 95 per cent of the revenues. However, they were hit with a drop in revenues from local service. Competitors made inroads into this market segment, primarily in urban areas. They garnered between 10 and 20 per cent of local business market and between one and 13 per cent of residential lines.

In the long-distance market, the pressure of competition has lead to decrease in rates, resulting in a decline in revenue by 2.8 per cent.

However, Canadians are calling more. The number of long distance minutes grew by 3.5 per cent in the last year.

The Internet continues to be a growth area. Access revenues grew by 27 per cent. The market split among the incumbent telephone companies with 41 per cent, cable companies with 35 per cent and other suppliers with 23 per cent. High-speed access remained very popular (28 per cent of all Internet households) and grew in those communities where broadband deployment is a reality. Rural communities for the most part remain unserved.

The cellular market continued to grow, capturing two per cent more of the overall telecommunications revenues. Total market revenues for mobile service increased by 11 per cent. Data and private line market revenues increased by approximately 1.6 per cent. However, the competitors lost about 20 per cent market share.

Ultimately, the success of the government’s competition policy is measured by whether consumers feel that they are well served and have significant choice. According to the CRTC report, 72 per cent of Canadians believe that competition has been good for them, providing them with more choice and better prices. What is true is that if you live in urban areas there is greater choice. However, there is a long road to travel before competitive choices are available to all Canadians, no matter where they live.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Story

How the CTO can Maintain Cloud Momentum Across the Enterprise

Embracing cloud is easy for some individuals. But embedding widespread cloud adoption at the enterprise level is...

Related Tech News

Get ITBusiness Delivered

Our experienced team of journalists brings you engaging content targeted to IT professionals and line-of-business executives delivered directly to your inbox.

Featured Tech Jobs