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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.
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 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 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).
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%.
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.
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.
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.
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.
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.