Canadian Radio-television and Telecommunications Commission
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CRTC Communications Monitoring Report
2010
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Acknowledgements
The Commission wishes to thank all the entities that completed the CRTC Data Collection forms, without which this report would not have been possible. The Commission would also like to acknowledge the assistance provided by (1) Industry Canada in the analysis of broadband deployment as it related to the rural communities in Canada; (2) Statistics Canada for the various supplementary data used in this report; (3) BBM Canada and BBM Nielsen Media Research for audience measures; (4) BBM Analytics for Media Technology Monitor (MTM) syndicated reports; (5) comScore, for assistance with the MyMetrix data; and (6) Mediastats.
Interested parties are welcome to provide comments for improvements or additions to future editions of the report. You can send your comments to the attention of the Secretary General, CRTC, Ottawa, K1A 0N2.
Executive summary
Broadband and broadband-related services continue to have a strong impact on communications revenues. This report provides greater details than previous reports on broadband availability and subscriptions. Approximately 95% of Canadian households can access broadband services using landline facilities. Satellite facilities extend this reach to virtually all households and are only limited by capacity constraints. On a provincial basis, landline broadband Internet service is available to all households in 3 provinces, New Brunswick, Nova Scotia, and Prince Edward Island. For the remaining provinces landline broadband Internet service is available to at least 92% of the households, except Newfoundland which is at 78%. With respect to mobile, approximately 96% of Canadians can also access broadband services using handheld mobile devices.
Communications service revenue growth
Canadian communications service revenues increased from $54.3 billion in 2008 to $55.4 billion in 2009, or by 2.1%. The growth was driven by the 3.0% growth in broadcasting revenues and 1.8% growth in telecommunications revenues.
Broadcasting
Broadcasting revenues increased from $14.0 billion in 2008 to $14.4 billion in 2009. The increase was due to the 7.4% growth in BDU revenues, which increased from $6.9 billion to $7.5 billion, and the 6.0% growth in Pay, PPV, VOD and specialty services. These increases were partially offset by the 7.4% and 5.2% decline in conventional television, including the CBC, and radio advertising revenues respectively.
Telecommunications
Telecommunications service revenues increased from $40.3 billion in 2008 to $41.0 billion in 2009, or by 1.8%. The increase was due to newer, or non-legacy data services, and broadband Internet and wireless services. Non-legacy revenues increased from $1.4 billion to $1.5 billion, or by 12.2%. Internet service revenues increased from $6.2 billion to $6.6 billion, or by 6.3%. Wireless revenues increased from $16.0 billion to $16.9 billion, or by 5.3%. These increases were partially offset by the declines in long distance revenues, which decreased from $4.2 billion to $3.9 billion, a 7.1% decrease; legacy data and private line revenues, which decreased from $3.0 billion to $2.8 billion, a 7.3% decrease; and local and access revenues, which decreased from $9.6 billion to $9.4 billion, a 1.9% decline.
The communications industry
In 2009, approximately 34% of residential customers subscribed to service bundles that consisted of local telephone service and one or more of the following services: Internet access, video, and mobile. Approximately 92% of telecommunications revenues were from TSPs operating in all of the telecommunications market sectors: local telephone, long distance, Internet, data and private line, and wireless. Sixty-seven percent of cable companies’ revenues were from telecommunications services. Similarly, broadcasting service revenues represented approximately 6% of the incumbent telephone companies’ revenues.
Convergence in the communications industry changes the competitive landscape in Canada as companies enter each others’ non-traditional markets (see figure 3.1.8).
Competition
The alternative TSPs’ share of total wireline telecommunications revenues continued to increase and reached 37% in 2009. The alternative TSPs’ market share included the incumbent telephone companies' activities operating outside their traditional territories (8%), other facilities-based TSPs such as cable companies and hydro utility companies with telecommunications activities (23%), and resellers (6%).
The large cable companies were major providers of high-speed Internet service, as they had approximately 56% of high-speed residential Internet subscribers in 2009. In 2005, these companies started to provide local telephone service generally over a managed IP network, and by year-end 2009, they captured approximately 27% of local residential lines to become major competitors of the incumbent telephone companies in residential markets.
The competitors of the incumbent telephone companies, which include incumbent telephone companies operating outside their traditional territories, maintained their share of telecommunications revenues. Competitors, essentially cable BDUs, had strong growth in their number of residential local lines, which increased by 12.5%. In the local business market, competitor lines increased by 4.8%.
Broadcasting
Radio
There were 1,221 radio and audio services in Canada in 2009, of which 41 were digital. Seventy-five percent of the radio and audio services were broadcast to English-language Canadians, 22% to French-language Canadians, and the remaining 3% to third-language Canadians.
National average weekly hours tuned per capita decreased 3.2% from 18.3 hours in 2008 to 17.7 hours in 2009. On a per-listener basis, average weekly hours tuned declined from 20.0 hours per listener to 19.5 hours, a 2.5% decline.
Television
Overall viewing of Canadian programs on Canadian English-language services decreased 2% from 2008 to 74% in 2009, while viewing of Canadian programs on French-language services remained relatively unchanged at 99%. While drama and comedy programs continued to be the most popular genre, it is predominantly of non-Canadian content. In 2009, 79% and 68% of English- and French-language language drama and comedy programs were non-Canadian, respectively.
BDUs
In 2009, approximately 11.3 million or 90% of Canadian households subscribed to a BDU for television service, an increase of 2.2% over the previous year. Of those subscribing to BDUs, 25% subscribed to either DTH or MDS BDU. The top four cable BDUs and the two DTH providers captured 89% of all BDU subscribers in 2009.
BDU programming revenues per subscriber per month1 increased by $2.78, or 5%, to $56.14 in 2009.
New media broadcasting
A growing number of Anglophone and Francophone Canadians used the Internet to watch video programming (52% and 44%, respectively, in 2009). More Canadians are watching television programming online. Of those viewing online TV, anglophones spend 2.2 hours per week and francophones spend 1.3 hours per week in such activity.
Anglophones, that stream online radio, then to do less streaming than their francophone counterparts. The anglophones spend 4.1 hours per week streaming AM/FM radio compared to 4.6 hours for francophones.
Telecommunications
The number of mobile phone subscribers increased 8% in 2009 from the previous year. As well, Canadians continued to embrace technologies including broadband access to the Internet as the number of residential subscribers to high-speed Internet services increased by 6%. In 2009, approximately 62% of Canadian households had broadband Internet service and 72% had high-speed Internet service.
Newer data services that meet business customer requirements for increased speed, functionality, and cost-efficiency now represent 83% of data protocol revenues, with data services such as Ethernet and IP-based virtual private networks having a combined revenue growth of 12% in 2009.
Data collection
The data compiled for this report was obtained from a number of sources. The majority of the data was collected using the Commission’s data collection survey forms. Broadcasting data was generally for the twelve-month period ending 31 August 2009 and telecommunications data was for the twelve-month period ending 31 December 2009.
The Commission collaborates with other government agencies and departments such as Statistics Canada and Industry Canada to minimize the reporting burden on the industry. The data collected for monitoring purposes is also used by Statistics Canada for its national system of accounts. Additional survey questions were added to meet Statistics Canada’s specific needs.
The Commission continues to work with Industry Canada to identify the availability of broadband Internet access service. The data, jointly collected, assists Industry Canada in the administration and monitoring of the $225 million broadband deployment initiative that was part of the federal government’s economic incentive plan in 2009.
Data collection forms are reviewed annually to ensure that only relevant data is collected.
Table of Contents
1.0 Introduction
1.1 Purpose of the report
1.2 Data collection and outline of the report
2.0 The CRTC, policies, and regulation
2.1 The CRTC
2.2 Regulatory oversight of broadcasting and telecommunications
2.3 Contribution and spending regimes
3.0 The Communications service industry
3.1 Communications service industry overview
4.0 Broadcasting
4.1 Broadcasting - Financial review
4.2 Radio
4.3 Television
4.4 Broadcasting distribution
4.5 New media
5.0 Telecommunications
5.1 Telecommunications - Financial review
5.2 Local & access and long distance
5.3 Internet and broadband availability
5.4 Data and private line
5.5 Wireless
6.0 International perspective
6.1 How Canada compares internationally
Appendix 1 Data collection methodology and analysis
Appendix 2 Classification of telecommunications service providers
Appendix 3 Status of local forbearance - residential and business exchanges
Appendix 4 International pricing assumptions
Appendix 5 Telecommunications market sector description
Appendix 6 List of acronyms used in the report
Appendix 7 List of decisions, notices, circulars and acts referred to in the report
List of diagrams
Diagram 4.0.1 Program Distribution
List of tables
Table 2.2.1 Broadcasting complaints by sector, by issue
Table 2.2.2 Number of contacts by public
Table 2.2.3 Complaints handled by the CBSC
Table 2.2.4 Complaints handled by the ASC
Table 3.1.1 Telecommunications and broadcasting revenues
Table 3.1.2 Industry revenues by type of provider
Table 3.1.3 Industry convergence: Broadcasting v. Telecom
Table 4.1.1 Broadcasting revenues
Table 4.2.1 Number and type of radio and audio services authorized to broadcast in Canada
Table 4.2.2 Markets with transitional digital radio stations in Canada
Table 4.2.4 Average weekly hours tuned per capita by age group
Table 4.2.6 Fall tuning achieved by the largest private commercial radio operators in Canada
Table 4.2.10 Revenues for Type B Native, Community, and Campus radio stations
Table 4.2.12 Summary of annual CCD contributions reported by radio licensees
Table 4.3.1 Number and type of television services authorized to broadcast in Canada
Table 4.3.2 Conventional digital television
Table 4.3.3 National average weekly viewing hours, by age group
Table 4.3.12 Advertising and other revenues: Private conventional television stations
Table 4.3.13 Revenues: Pay, PPV, VOD and specialty analog and digital services
Table 4.3.16 Canadian Programming Expenditure (CPE) - Private conventional television
Table 4.3.17 Expenditures on non-Canadian programming - Private conventional television
Table 4.3.19 Canadian programming expenditures (CPE) reported by the PPV and VOD services
Table 4.4.2 Top Canadian distributors and number of subscribers
Table 4.4.3 Number of subscribers receiving digital services
Table 4.4.4 Number of cable undertakings contributing to community channels
Table 4.4.5 Affiliation payments made to pay, PPV, VOD (pay)and specialty services
Table 4.5.1 Website visits by Canadian unique visitors
Table 4.5.2 Canadian Internet usage by linguistic group
Table 4.5.3 Average weekly hours spent online by Canadian Internet users
Table 4.5.4 Adoption and growth rates of various video technologies in Canada
Table 4.5.5 Adoption and growth rates of various audio technologies in Canada
Table 4.5.6 Time spent by Canadian adopters using various technologies
Table 4.5.7 Various Canadian new media development funds
Table 5.1.1 Retail and wholesale telecommunications revenues
Table 5.1.2 Telecommunications revenues, by market sector
Table 5.1.3 Percent of revenues from entities operating in one or more markets sectors
Table 5.1.4 Total telecommunications revenues, by type of service provider
Table 5.1.5 Wireline telecommunications revenue market share (%), by type of service provider
Table 5.1.6 Percent of revenues from forborne services117
Table 5.1.7 Canadian penetration rates – Wireline and wireless subscribers (per 100 households)
Table 5.1.8 Number of connections
Table 5.1.9 Capital expenditures, by type of TSP
Table 5.1.10 Percent of subscribers with local service bundled with other services
Table 5.2.1 Local and access and long distance revenues, local lines, and long distance minutes
Table 5.2.2 Local and access and long distance forborne revenues
Table 5.2.3 Local and access and long distance revenues, by market segment
Table 5.2.4 Local and access revenues, by type of TSP
Table 5.2.5 Local & access lines by type of TSP, by type of TSP
Table 5.2.6 Local and long distance retail monthly revenues per line
Table 5.2.7 Local and access retail monthly revenues per line by type of TSP
Table 5.2.8 Incumbent TSP provincial retail local market share, by line
Table 5.2.9 Incumbent TSP residence and business local market share, by line for major centres
Table 5.2.10 Local wholesale revenues, by major component
Table 5.2.11 Long distance revenues, by type of TSP
Table 5.2.12 Long distance retail revenues per minute, by type of TSP
Table 5.2.13 Large incumbent TSPs’ retail long distance revenue market share, by region
Table 5.3.2 Residential Internet subscribers, by type of TSP
Table 5.3.3 Residential Internet plans and pricing
Table 5.3.4 Key telecommunications availability indicators
Table 5.3.5 Number of households that can have broadband access
Table 5.3.6 Broadband availability, by technology
Table 5.4.1 Data and private line revenues
Table 5.4.2 Data protocol revenues, by service category
Table 5.4.3 Data protocol revenue market share, by service category (%)
Table 5.4.4 Private line revenues, by service category
Table 5.4.5 Private line - Short-haul and long-haul revenue market share (%)
Table 5.5.1 Wireless and paging revenues and number of subscribers
Table 5.5.2 Wireless and paging revenue components
Table 5.5.3 Prepaid and post-paid wireless revenues (basic voice and long distance)
Table 5.5.4 Wireless subscriber market share, by province
Table 5.5.5 Average revenue per user (ARPU), by province (excluding paging)
Table 5.5.6 Average monthly churn rates (percent)
Table 6.1.1 International pricing (average price per month)
Table 6.1.2 Broadband market share by connection type
Table 6.1.3 Average advertised speeds (Mbps), by connection type
Table 6.1.4 Mobile broadband subscriptions, by country
Table 6.1.5 Wireless industry metrics
Table 6.1.6 Radio industry metrics
Table 6.1.7 Television industry metrics
List of figures
Figure 2.3.1 2009 Contributions to CCD reported by commercial radio & audio services
Figure 2.3.2 2009 Television CPE
Figure 2.3.3 2009 BDU contributions to Canadian programming and local expression
Figure 2.3.4 Subsidy paid to LECs and the revenue percent charge
Figure 3.1.1 Broadcasting and telecommunications annual revenue growth rates
Figure 3.1.2 Broadcasting and telecommunications revenues by type of provider
Figure 3.1.4 BDU revenues, by service type
Figure 3.1.6 Select Canadian communications companies revenue composition
Figure 3.1.7 Broadcasting and telecommunications operating platforms
Figure 3.1.8 Regulatory considerations in a converging industry
Figure 4.1.1 Commercial radio revenues, by broadcaster
Figure 4.1.2 Commercial television revenues, by broadcaster
Figure 4.1.3 BDU revenues, by operator
Figure 4.1.4 Total broadcasting revenues and PBIT/EBITDA margins
Figure 4.1.5 Canadian advertising revenues
Figure 4.2.1 Type of radio and audio services authorized to broadcast in Canada
Figure 4.2.2 Radio tuning share in an average week
Figure 4.2.3 Radio tuning shares - English-language station formats
Figure 4.2.4 Radio tuning shares - French-language station formats
Figure 4.2.5 Revenues - private commercial radio stations
Figure 4.2.6 Average annual revenues and PBIT per station – Private commercial radio stations
Figure 4.2.7 PBIT and PBIT Margin - Private commercial radio stations
Figure 4.2.8 Revenues – English-language private commercial radio stations
Figure 4.2.10 PBIT and PBIT Margin – English-language private commercial radio stations
Figure 4.2.11 Revenues – French-language private commercial radio stations
Figure 4.2.13 PBIT and PBIT Margin – French-language private commercial radio stations
Figure 4.2.14 Revenues – Ethnic private commercial radio stations
Figure 4.2.16 PBIT and PBIT Margin – Ethnic private commercial radio stations
Figure 4.3.1 National average weekly viewing hours by age group
Figure 4.3.3 Source of revenues for conventional television
Figure 4.3.10 Revenues of ethnic and third-language specialty, and digital Category 2 pay services
Figure 4.3.12 Revenues of large English-language private conventional television ownership groups
Figure 4.3.13 Revenues of large French-language private conventional television ownership groups
Figure 4.3.14 Advertising revenues: CBC conventional television stations (owned & operated)
Figure 4.4.1 EBITDA margins achieved from basic and non-basic programming services
Figure 4.5.1 Cycle of consumer adoption/Product Life Cycle
Figure 4.5.2 Internet applications – bandwidth requirements
Figure 4.5.3 Popular Internet activities of Canadian Internet users
Figure 4.5.4 Video technology penetration in Canada
Figure 4.5.5 Internet video viewing, by Canadians
Figure 4.5.6 Internet video viewing, by Canadians by type
Figure 4.5.7 Penetration of Internet TV viewers, by selected demographic groups
Figure 4.5.8 Audio technology (excluding conventional radio) penetration in Canada
Figure 4.5.9 Podcast usage in Canada
Figure 4.5.10 Downloading music in Canada
Figure 4.5.11 Streaming radio in Canada
Figure 4.5.12 AM/FM broadcasters as a source of audio material in streaming audio
Figure 4.5.15 Canadian online advertising revenues
Figure 4.5.16 Canadian mobile advertising revenues
Figure 5.1.1 Telecommunications revenues and percent annual growth
Figure 5.1.2 Annual revenue growth, by market sector
Figure 5.1.3 Distribution of telecommunications revenues, by market sector
Figure 5.1.4 Total telecommunications revenue market share, by type of service provider
Figure 5.1.5 Total telecommunications revenue market share, by type of service115
Figure 5.1.7 Telecommunications revenues and EBITDA margins
Figure 5.1.9 Wireline inter-carrier expenses as a percentage of revenues, by type of TSP
Figure 5.2.2 Alternative TSP local residential and business lines, by type of facility
Figure 5.2.3 Incumbent TSP pay telephone quantities and revenue per payphone
Figure 5.3.1 Internet access revenue share, by type of entity
Figure 5.3.2 Business Internet access revenues, by access technology
Figure 5.3.3 Residential Internet access technology mix (2005 v. 2009)
Figure 5.3.4 Broadband (greater than 1.5 Mbps) subscriptions
Figure 5.3.5 Broadband availability (percent of households)
Figure 5.3.6 Broadband availability – Urban v. rural (Percent of households)
Figure 5.3.7 Broadband availability v. broadband subscriptions
Figure 5.4.1 Data and private line revenue market share, by type of TSP
Figure 5.4.2 Data revenue market share, by type of TSP
Figure 5.4.3 Private line revenue market share, by type of TSP
Figure 5.5.1 Wireless revenues, subscribers, and revenues per subscriber (excluding paging)
Figure 5.5.2 Wireless revenue and subscriber growth rates (excluding paging)
Figure 5.5.3 Revenues by major component (excluding basic voice)
Figure 5.5.4 Percent of prepaid and post-paid subscribers
Figure 5.5.5 Capital expenditures (CAPEX) and average capital expenditure per user (ACEPU)
Figure 5.5.6 Retail and Wholesale Revenue Split
Figure 5.5.7 Wireless TSPs' subscriber market share
Figure 5.5.8 Wireless TSPs' revenue market share
Figure 5.5.9 Population coverage and penetration
Figure 6.1.1 Global telecommunications service revenues
Figure 6.1.2 Communications retail revenues per capita
Figure 6.1.3 Average monthly telecommunications retail revenues
Figure 6.1.4 International penetration
Figure 6.1.5 Fixed broadband connections 2004-2009, year-over-year growth
Figure 6.1.6 Average measured broadband speeds, 2008 and 2009
Figure 6.1.7Availability of mobile broadband (3G), 2007 and 2008
Figure 6.1.8Wireless ARPU – monthly mobile revenues, including data share
Figure 6.1.9Prepaid share of mobile subscriptions, 2004 and 2009
Figure 6.1.10Primary television platforms, 2009 (% of TV households)
List of maps
Map 5.5.1 Presence of wireless facilities-based service providers
Map 5.5.2 Presence of 3G or 3G-equivalent wireless facilities-based service providers
Notes:
[1] Revenues per subscriber per month were derived by dividing total revenues by the number of subscribers and by the number of months in the year.
