2014 Canada - Telecoms, IP Networks, Digital Media and Forecasts

Cablecos’ 200Mb/s services stimulating fibre network builds to compete for customers

Broadband and wireless revenues are continuing to underpin Canada’s telecom sector, offsetting the decline in the fixed-voice segment. Operators investing in fibre networks are migrating customer to IP for voice and other services as part of a systematic overhaul of the country’s telecom infrastructure. A stimulus for FttP expansion among telcos has come from cablecos whose upgraded networks now commonly offer up to 200Mb/s.

Comparatively low mobile penetration provides further room for growth in the mobile voice and particularly data markets. The government has endeavoured to encourage market competition by ensuring that blocks of spectrum have been reserved for new entrants, while blocking deals which would have concentrated spectrum either regionally or nationally among the three main network operators. Operators have been upgrading their networks with HSPA+ and LTE technologies, and have seen a steady migration among subscribers from feature phones to smartphones. About 75% of contract subscribers now have smartphones, and with higher data use this has resulted in a slower decline in ARPU. Operators have also been able to capitalise on their recently awarded concessions in the 700MHz band, with a view to extending their LTE network footprints to about 99% of the population.

Canada has one of the highest broadband penetration rates among the OECD nations. Government policy has encouraged widespread broadband availability, particularly in rural and regional areas, resulting in near comprehensive accessibility to broadband services. Cable still leads DSL in terms of subscriber numbers, though fibre deployments are also gaining momentum. The regulator has also upgraded the targets for basic broadband, which must reach a minimum of 5Mb/s by the end of 2015. This should lead to a period of sustained development in the Canadian regional broadband sector.

Key developments:

SaskPower and SaskEnergy install smart meters and upgraded gas meters; government relaxes foreign company ownership rules in the telecom sector; regulator’s policy to migrate telcos to IP networks; CRTC decides against Rogers Communications’ exclusive wholesale roaming agreements with new entrants; Rogers and Bell Canada blocked from concentrating too much spectrum in the 2300MHz band; Public Mobile shuts down its CDMA-based network; results of the 2014 700MHz auction; PTT developments from Telus; LTE network rollouts; Rogers launches LTE international roaming service, enters into network share deal with Mobilicity; Public Mobile bought by investment firms; spectrum licence transfer framework agreed; regulator prepares for 2.5GHz auction; government injects additional funds into rural broadband in 2014 budget; Ontario Broadband Project developments; Bell Canada makes move to consolidate bell Aliant for about C$3.95 billion; Bell acquires Quebec’s Astral Media for C$3.38 billion; MTS sells Allstream unit; SaskTel invests in Northern Fibre Expansion project, migrates customers to VoIP; SaskTel closes the Saskatchewan! Connected wireless internet network; Shaw Communications extends its WiFi network; Eastlink launches 200Mb/s service; OneGigabit launches in Vancouver; community fibre updates; Videotron launches subscription VoD service; Rogers Communications discontinues WiMAX service; regulator’s 2013 market data update; telcos’ operating and financial data to Q2 2014; market developments into 2014.

Companies and subsidiaries mentioned in this report include:

Bell Canada, Bell Aliant, BOLDstreet Wireless, Tadaa Wireless, DoDo Wireless, Hotspotzz, Wayport, Boingo, FatPort, Rogers Communications, Craig Wireless System, Barrett Xplore, I-NetLink, SaskTel, Videotron, Cogeco, Shaw Communications, Rogers Wireless, Bell Mobility, Virgin Mobile Canada, Telus Mobility, SaskTel Mobility, MTS Allstream, Wind Mobile, Mobilicity, Public Mobile, Vidéotron Wireless, Shaw Cablesystems, Rogers Cable Communications, Vidéotron Ltée, Cogeco Cable, Telus Corporation. 

Data in this report is the latest available at the time of preparation and may not be for the current year