Canada - Telecoms, Mobile & Broadband Overview & Analysis 2006

Synopsis

The bundling of voice, Internet and TV is transforming the telecommunications and TV broadcasting industries, bringing players in both industries together as direct competitors in the triple play market. However, during 2005 and 2006 the cable companies’ VoIP offerings were making a splash in the telcos’ markets whereas the telcos barely made a ripple in the broadcasting sector. The decline in residential fixed lines steepened as households continue to switch to VoIP or mobile-only services. Thus the industry revenue mix continued to shift, with mobile voice and data revenues shining at the expense of a lacklustre fixed line sector. Despite these trends, mobile penetration remained relatively low compared to OECD averages. Similarly, although Canada had the second highest OECD broadband penetration in 2001, by 2005 it had fallen to eighth place. These score cards persuaded the Telecom Policy Review Panel in March 2006 to call for a lighter framework of regulation which relies on market forces in the first instance. Hence 2007 may be characterised by significant regulatory reforms.