CRTC Communications Monitoring Report

2011

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5.0 Telecommunications

This pie chart shows the wireless, local & access and long distance, data & private line, and internet revenues as a percentage of total telecommunications revenues in 2010. Mobile: 43%; Wireline voice: 30%; Data & private line: 11%; Internet: 16%; Telecommunications revenues: $41.7 billion.

5.1 Financial review

The Canadian telecommunications service industry. is dominated by a 10 large companies that collectively, with their affiliates, account for 95% of Canadian telecommunications revenues. The vast majority of the remaining entities are small entities with revenues of less than $5 million.

In 2010, companies operating in all six markets of the telecommunications service industry (i.e. local and access, long distance, Internet, data, private line, and wireless) accounted for approximately 91% of Canadian telecommunications revenues. Companies operating in only one market sector accounted for 1% of revenues.

This section provides a broad overview of the financial performance of the telecommunications service industry and examines various financial indicators such as revenue trends by market sector and by type of service provider, profitability, market share, capital intensity, average revenues per line, and penetration rates.

Telecommunications service industry at a glance

  2009 2010 %
Growth
Telecommunications revenues ($ billions) 41.0 41.7 1.8
Percentage of total telecommunications revenues      
Top 5 ILECs 66 66 0.0
Top 5 cable companies 28 29 3.5
Top 5 resellers 2 2 0
Capex expenditures ($ billions)      
Wireline 5.7 6.6 14.2
Wireless 2.2 1.8 -18.9
EBITDA margin (%)      
Wireline 24 21 -12.0
Wireless 43 41 -3.9
Average retail revenues per subscriber per month1 ($/subscriber/month)      
Wireless 59 58 -1.6

1. Average retail revenues per subscriber per month are obtained by dividing total retail revenues by the total number of retail subscribers by 12.

Source: CRTC data collection

Statistical information – Telecommunications

Table 5.1.1 Retail and wholesale telecommunications revenues1 ($ billions)

  CAGR
2006-2010
  2006 2007 2008 2009 2010
Wireline
Retail 20.5   20.8   21.1 # 21.0 # 20.6 0.1%
Annual growth -0.7%   1.5%   1.2% # -0.4% # -1.8%  
Wholesale 2.8 # 2.8 # 3.1   3.1   3.1 1.9%
Annual growth 0.2% # -0.4% # 10.1%   -1.3%   -0.3%  
Wireline total 23.4 # 23.6 # 24.2 # 24.0 # 23.7 0.3%
Annual growth -0.5% # 1.2% # 2.2% # -0.5% # -1.6%  
Wireless
Retail 12.2   14.0   15.6   16.3   17.5 9.4%
Annual growth 12.1%   14.6%   11.1%   4.9%   7.2%  
Wholesale 0.5   0.5   0.5   0.5   0.5 1.2%
Annual growth n.m.   9.5%   -8.0%   19.3%   -12.9%  
Wireless total 12.7   14.7   16.0   16.9   18.0 9.1%
Annual growth 15.2%   15.5%   9.3%   5.3%   6.6%  
Retail total 32.7   34.8   36.6 # 37.3 # 38.1 3.9%
Annual growth 3.8%   6.4%   5.2% #    1.8% # 2.2%  
Wholesale total 3.3 # 3.3 # 3.6   3.6   3.5 1.5%
Annual growth 12.7% # -0.2% # 7.4%   1.4%   -2.2%  
Total 36.1 # 38.2 # 40.3 # 41.0 # 41.7 3.7%
Annual growth 4.5% # 5.8% # 5.4% # 1.8% # 1.8%  

1. Estimates were used to capture the retail and wholesale revenues of the smaller TSPs that were not required to complete data forms. These estimates are based on the information TSPs provided in their registration forms.

Source: CRTC data collection

Figure 5.1.1 Telecommunications revenues and annual growth

This line stacked column chart shows both wireline and wireless revenues in billions of dollars and wireline and wireless growth in percent for each year between 2006 and 2010. Wireline: 23.4, 23.7, 24.2, 24.1, 23.6; Wireless: 12.7, 14.5, 16.0, 16.9, 18.0; Wireline: -0.5%, 0.8%, 2.3%, -0.5%, -2.0%; Wireless: 15.2%, 14.0%, 10.4%, 5.3%, 6.6%.

Source: CRTC data collection

Table 5.1.2 Telecommunications revenues, by market sector ($ billions)

  CAGR           
2006-2010
  2006 2007 2008 2009 2010
Wireline                    
Local and access 9.6   9.5   9.6   9.4   9.1 -1.3%
Annual growth -1.5%   -0.8%   0.1%   -1.9%   -2.7%  
Long distance 4.7   4.3   4.2   3.9   3.4 -7.8%
Annual growth -7.2%   -8.9%   -3.8%   -7.1%   -11.0%  
Voice subtotal 14.4   13.9   13.7   13.2   12.6 -3.3%
Annual growth -3.4%   -3.5%   -1.1%   -3.5%   -5.0%  
Internet 5.0 # 5.6 # 6.1 # 6.5 # 6.8 7.9%
Annual growth 11.0% # 12.3% # 9.1% # 6.1% # 4.2%  
Data and private line                    
Newer data protocols 1.0 # 1.3 # 1.5 # 1.7 # 1.8 15.3%
Annual growth 56.5% # 24.2% # 15.1% # 14.4% # 8.2%  
Legacy data, private line and other 2.9 # 2.9 # 2.8 # 2.6 # 2.5 -4.1%
Annual growth -14.6% # -2.3% # -0.4% # -8.3% # -5.3%  
Data and private line total 4.0 # 4.2 # 4.3 # 4.3 # 4.3 2.1%
Annual growth -3.0% # 4.6% # 4.4% # -0.5% # 0.0%  
Non-voice subtotal 9.0 # 9.8 # 10.5 # 10.8 # 11.1 5.3%
Annual growth 4.5% # 8.4% # 7.1% # 3.4% # 2.5%  
Wireline total 23.4 # 23.6 # 24.2 # 24.0 # 23.7 0.3%
Annual growth -0.5% # 1.1% # 2.3% # -0.5% # -1.6%  
Wireless 12.7   14.5   16.0   16.9   18.0 9.1%
Annual growth 15.2%   14.4%   10.4%   5.3%   6.6%  
Total 36.1 # 38.1 # 40.2 # 40.9 # 41.7 3.7%
Annual growth 4.5% # 5.8% # 5.4% # 1.8% # 1.8%  

Source: CRTC data collection

Figure 5.1.2 Annual revenue growth, by market sector

This clustered column charts shows the revenue growth from newer telecommunication services versus legacy telecommunication services in billions of dollars for each year between 2008 and 2010. Newer services consists of wireless, internet, and newer data protocols. Legacy services consists of local and access, legacy data and private line, and long distance. Wireless: 1.5, 0.9, 1.1; Internet: 0.5, 0.4, 0.2; Newer data protocols: 0.2, 0.2, 0.1; Local and access: 0.0, -0.2, -0.2; Legacy data and private line: 0.0, -0.2, -.1; Long distance: -0.2, -0.3, -0.4.

Source: CRTC data collection

Figure 5.1.3 Distribution of telecommunications revenues, by market sector

This is a side by side pie chart that shows the telecommunications revenue distribution by market segment for 2002 and 2010. The five market segments displayed in each of pie chart are local and access, long distance, internet, data and private line, and wireless. Local and access: 32%, 22%; Long distance: 21%, 8%; Internet: 10%, 16%; Data and private line: 14%, 10%; Wireless: 23%, 43%.

Source: CRTC data collection

Figure 5.1.4 Total telecommunications revenue market share, by type of TSP (2010)

This is a single pie chart that shows the telecommunications revenue market share by type of service provider in 2010. There are four types of service providers in this pie chart. Incumbent TSPs (excludes out of territory): 55%; Cable BDUs and other facilities based TSPs: 31%; Incumbent TSPs (out of territory): 10%; Resellers: 4%.

Source: CRTC data collection

Figure 5.1.5 Total telecommunications revenue market share, by type of TSP (2010)

This is a bar chart that shows the various types of telecommunications service providers’ revenue share and the total number of providers as a percent of total number of industry providers of telecommunication services in 2010. There are five types of service providers in this bar chart. Large incumbent TSPs (including out-of-territory): 64%, 0.6%; Small incumbent TSPs: 1%, 3.3%; Resellers: 4%, 72.2%; Other facilities-based TSPs: 2%, 13.8%; Cable BDUs: 28%, 10.1%.

Source: CRTC data collection

Table 5.1.3 Percentage of telecommunications revenues generated by companies operating in one or more market sectors

Number of markets1 2009 2010
6 92 91
5 1 2
4 3 3
3 2 2
2 1 1
1 1 1

1. The market include local and access, long distance, Internet, data, private line, and wireless.

  • Affiliates are included with thier parent company

Source: CRTC data collection

Table 5.1.4 Percentage of telecommunications revenues generated by companies operating in multiple markets (2010)

Number of
markets
Number of reporting
companies operating
in these markets
Percentage of
telecom revenues
generated in these
markets
6 12 91
5 11 2
4 24 3
3 31 2
2 34 1
1 63 1
  • Number of markets include local and access, long distance, Internet, data & private line, and wireless.
  • 2010 data restated to reflect industry players as of 30 March 2011.
  • Affiliates are included with thier parent company

Source: CRTC data collection

Table 5.1.5 Total telecommunications revenues, by type of service provider ($ millions)

  2007 2008 2009 2010
Incumbent TSPs              
Large incumbent TSPs 26,245.0   26,715.5   26,777.9   26,752.3
Small incumbent TSPs 465.2   436.0   401.8   417.5
Subtotal 26,710.2   27,151.5   27,179.7   27,169.8
Less: Incumbent TSPs (out-of-territory) 3,897.1   3,882.2   4,290.6   4,326.1
Incumbent TSPs (excl. out-of-territory) 22,813.2   23,269.3   22,889.1   22,843.7
Percent of total 60%   58%   56%   55%
Alternative TSPs              
Facilities-based alternative TSPs              
Incumbent TSPs (out-of-territory) 3,897.1   3,882.2   4,290.6   4,326.1
Cable BDUs 9,174.8 # 10,598.5 # 11,428.4 # 12,237.0
Utility telcos and other carriers 488.1   585.8   723.7   713.5
Subtotal alternative TSPs 13,560.0 # 15,066.5 # 16,442.6 # 17,276.5
Resellers 1,774.5   1,862.2   1,594.7   1,533.8
Total facilities-based alternative TSPs and resellers 15,334.5 # 16,928.6 # 18,037.2 # 18,810.3
Percent of total 40% # 42% # 44% # 45%
Total 38,147.7 # 40,198.0 # 40,926.4 # 41,654.0

Source: CRTC data collection

Table 5.1.6 Wireline telecommunications revenue market share (%), by type of TSP (2010)

  Retail Wholesale Total
Residential Business Total
 Incumbent TSPs (excl. out-of-territory) 56.6 69.6 62.4 64.8 62.7
Alternative TSPs          
Incumbent TSPs (out-of-territory) 0.1 11.4 5.1 16.1 6.5
Facilities-based non-incumbent TSPs 37.8 10.5 25.7 16.6 24.5
Resellers 5.5 8.6 6.8 2.6 6.3
Alternative TSPs subtotal 43.4 30.4 37.6 35.2 37.3

Source: CRTC data collection

Table 5.1.7 Percentage of revenues from forborne services

  2007 2008 2009 2010
Local and access 73 75 71 73
Long distance 95 94 96 96
Internet 98 98 99 98
Data and private line 75 80 82 81
Wireless 100 100 100 100
Overall 90 90 91 92

Source: CRTC data collection

Table 5.1.8 Canadian penetration rates – Wireline and wireless subscribers (per 100 households)

Year Wireline Wireless Wireline and/or wireless Wireless (only)
2002 97.0 51.6 98.7 1.7
2003 96.3 53.9 98.8 2.5
2004 96.2 58.9 98.9 2.7
2005 94.0 n/a 98.8 4.8
2006 93.6 66.8 98.6 5.0
2007 92.5 71.9 98.8 6.3
2008 91.1 74.3 99.1 8.0
2009 89.3 77.2 99.3 10.0
2010 n/a n/a n/a n/a
  • n/a: not available

Source: Statistics Canada Affordability Study (2002 - 2007), Survey of Household Spending (2008 - 2009)

Table 5.1.9 Canadian penetration rates by income quintile (2009) – Wireline and wireless subscribers (per 100 households)

Income quintile Wireline Wireless Wireline and/or
wireless
Wireline
only
Wireless
only
First 82.0 50.5 97.7 47.2 15.7
Second 87.1 70.8 99.5 28.7 12.4
Third 89.3 81.6 99.9 18.3 10.6
Fourth 92.4 90.4 100.0 9.6 7.6
Fifth 96.0 92.6 99.6 7.0 3.6
All households 89.3 77.2 99.3% 22.1 10.0
  • The upper bounds in 2009 for the first to the fourth quintiles are: $28K, $48K, $71K and $108K.
  • 2010 results not available

Source: Statistics Canada - Survey of household spending

Table 5.1.10 Monthly household telecommunications expenditures (2009) – Wireline and wireless

Income quintile Wireline local service Wireless service Internet access
First 37.50 35.00 30.00
Second 41.33 40.00 35.00
Third 42.67 50.00 39.42
Fourth 45.00 60.42 39.50
Fifth 50.00 70.83 43.00
All households 42.50 50.00 39.00
  • The upper bounds in 2009 for the first to the fourth quintiles are: $28K, $48K, $71K and $108K.

Source: Statistics Canada - Survey of household spending

Table 5.1.11 Number of connections (millions)

  CAGR
2008-2010
  2008 2009 2010
Local and access1 19.3 18.7 18.4 -2.4%
Annual growth 0.0%. -2.9% -1.7%  
Internet2 9.8 10.1 10.4 2.8%
Annual growth 5.6%. 3.1% 2.7%  
Wireless1 22.1 23.8 25.8 8.1%
Annual growth 9.0%. 7.8% 8.5%  
Total 51.2 52.6 54.6 3.3%
Annual growth 4.7%. 2.7% 3.8%  

1. Includes residential and business connections

2. Excludes business connections

Source: CRTC data collection

Figure 5.1.6 Total business market wireline revenue distribution, by customer size and type of TSP (2010)

This combination column chart shows the relative revenue market share for the total of local, long distance, data and private line, for small business, medium business, large business, and very large business, for Incumbent TSPs (excluding out-of-territory), non-incumbent Alternative TSPs, and Incumbent TSPs (out-of-territory).  The non-incumbent Alternative TSPs and the Incumbent TSPs (out-of-territory) are stacked, and the combined number will be known as Alternative TSP total. For small business: For Incumbent TSPs (excluding out-of-territory): 88%; For non-incumbent Alternative TSPs: 6%; For Incumbent TSPs (out-of-territory): 5%.  Alternative TSP total is 12%. For medium business: For Incumbent TSPs (excluding out-of-territory): 86%; For non-incumbent Alternative TSPs: 5%; For Incumbent TSPs (out-of-territory): 9%.  Alternative TSP total is 14%. For large business: For Incumbent TSPs (excluding out-of-territory): 75%; For non-incumbent Alternative TSPs: 12%; For Incumbent TSPs (out-of-territory): 13%.  Alternative TSP total is 25%. For very large business: For Incumbent TSPs (excluding out-of-territory): 78%; For non-incumbent Alternative TSPs: 10%; For Incumbent TSPs (out-of-territory): 12%.  Alternative TSP total is 22%.
  • Revenues include wireline revenues from local and access, long distance, and data and private line services.

Source: CRTC data collection

Table 5.1.12 Percentage of subscribers with local service bundled with other services

Number of services in a bundle1 2006 2007 2008 2009 2010
Two or more services 15 25 25 34 48

1. Local service bundled with Internet, wireless, and video distribution.

Source: CRTC data collection

Figure 5.1.7 Telecommunications revenues for the top 5 group of companies, the next top 5 group of companies and the remaining companies (2010)

This pie chart show telecommunications revenues for the top 5 group of companies, the next top 5 group of companies and the remaining companies. Top 5 companies: 87%; Next 5 companies: 8%; Remaining companies: 5%.
  • Revenues for the top companies include those of the companies’ affiliates.

Source: CRTC data collection

Figure 5.1.8 Telecommunications revenues and EBITDA margins

This line clustered column chart on two axes shows the wireline, wireless and total telecom revenues in billions of dollars and wireline and wireless EBITDA margins for each year between 2006 and 2010. Note that wireline EBITDA margins represent only Incumbent TSPs which includes their out of territory operations. Wireline: 23.4, 23.7, 24.3, 24.1, 23.7; Wireless: 12.7, 14.5, 16.0, 16.9, 18.0; Wireline: 27.2%, 25.1%, 23.7%, 24.2%, 21.3%; Wireless: 44.1%, 44.9%, 44.9%, 43.1%, 41.1%.

Source: CRTC data collection

Table 5.1.13 Capex, by type of TSP ($ billions)

  CAGR
2006-2010
  2006 2007 2008 2009 2010
Wireline            
Incumbent TSPs (including out-of-territory) 4.0 4.2 4.1 4.2 4.4 2.6%
Annual growth 11.4% 5.3% -1.4% 1.4% 5.1%  
Alternative TSPs            
Non-incumbent, facilities-based alternative TSPs 1.2 1.6 1.7 1.5 2.1 14.7%
Annual growth 109.0% 31.0% 5.6% -10.7% 40.2%  
Resellers 0.1 0.1 0.1 0.0 0.0 -22.2%
Annual growth -16.8% 41.8% -2.5% -59.0% -35.5%  
Alternative TSPs total 1.3 1.7 1.8 1.6 2.2 13.7%
Annual growth 96.1% 31.5% 5.2% -12.8% 38.7%  
Wireline total 5.3 5.9 5.9 5.7 6.6 5.6%
Annual growth 24.6% 11.8% 0.5% -2.9% 14.2%  
Wireless 1.7 1.9 6.1 2.2 1.8 2.0%
Annual growth 22.5% 12.7% 220.2% -63.0% -18.9%  
Wireline and wireless total 6.9 7.8 12.0 8.0 8.4 4.8%
Annual growth 24.1% 12.0% 54.1% -33.4% 4.9%  
  • n/a: not available

Source: CRTC data collection

Figure 5.1.9 Capex as a percentage of revenues, by type of TSP (includes AWS expenditures in 2010)

This line chart shows the capital expenditures as a percentage of revenues by type of TSP for each year between 2006 and 2010. There are three types of TSPs in this line chart. Wireless: 13%, 13%, 38%, 13%, 10%; Incumbent TSPs (including out of territory): 22%, 23%, 23%, 24%, 27%; Non incumbent facilities based alternative TSPs: 38%, 39%, 35%, 28%, 37%.

Source: CRTC data collection

Figure 5.1.10 Wireline inter carrier expenses as a percentage of revenues, by type of TSP

This clustered column chart shows the wireline intercarrier expenses as a percentage of revenues by type of provider in 2009 and 2010. There are three types of providers in this clustered column chart. Incumbent TSPs (including out of territory): 7.9%, 9.0%; Non incumbent facilities based alternative TSPs: 12.2%, 11.4%; Resellers: 38.3%, 40.6%.

Source: CRTC data collection

Figure 5.1.11 Price indices [TPI1, BDU2 (cable and satellite, including pay television), Internet access services, and CPI]

This line chart shows the following price indices from 2002 to 2010 Consumer price index (CPI): 100, 102.8, 104.7, 107, 109.1, 111.5, 114.1, 114.4 and 116.5; Telephone price index (TPI): 100, 100.2, 100.6, 101, 100.9, 101.6, 105.9, 106.5 and 111.2; Cablevision and satellite services (including pay television) index: 100, 104.8, 108.8, 112.5, 116.8. 122.7, 128.7, 135.8 and 143.4; Internet access services index: 100, 99.1, 99, 97.1, 96.7, 97.5, 95.8, 94.8 and 95.8.
  1. The TPI reflects the price changes experienced by a household for a basket of telephone services. The basket of telephone services reflects a weighted average of consumer expenditures on basic local service, other local services (such as options and features), and long distance, installation, and repair services. However, the TPI does not include wireless nor Internet service expenditures.
  2. The BDU price index reflects the price changes experienced by a household for a basket of cable television services. The basket includes both ‘Basic’ and ‘Extended’ cable services. Basic cable service is the minimum service to which all customers must subscribe. Extended cable service is the most popular package of additional channels. The index does not account for ‘bundling discounts.’

Source: Statistics Canada, CANSIM Table 326-0

5.2 Wireline voice market sector

This pie chart shows the wireline voice revenues as a percentage of total telecommunications revenues in 2010. Wireline voice: 30%; Telecommunications revenues: $41.7 billion.

Overview

In 2010, 91% of Canadian households subscribed to wireline voice communication services.

There were over 100 providers of local and access services and over 150 providers of long distance services in 2010. These service providers include the following:

  • large incumbent TSPs, which provide both local and long distance services, primarily over their own networks;
  • small incumbent TSPs, which operate in limited areas of Ontario, Quebec, and British Columbia, and include municipally owned, public, and private carriers;
  • cable BDUs, which provide network-based local and long distance services; and
  • resellers, which do not own their own facilities and tend to concentrate on the long distance market by offering dial-around or prepaid card services.

Wireline voice sector at a glance

  2009 2010 %
Change
Revenues ($ billions) 13.0 12.4 -4.9
Local and access1 9.2 9.0 -2.4
Long distance2 3.9 3.4 -11.0
Local lines (millions) 20.3 20.0 -1.7
Monthly retail local and long distance revenues per line $50.71 $48.71 -3.9
Monthly retail local revenues per line  $37.01 $36.78 -0.6
Residence $31.49 $31.35 -0.4
Business $48.64 $48.51 -0.3
Retail long distance revenues per minute $0.066 $0.061 -8.0
Residence $0.077 $0.072 -5.8
Business $0.052 $0.046 -11.0
Incumbent revenue market share (excluding out-of-territory)      
Local and access 79% 78%  
Long distance 60% 59%  

1. Revenues from telephony services that do not involve connectivity to the PSTN (i.e. computer to computer communication) and revenues from wireline terminal equipment sales (telephones and PBX equipment) are excluded from local and access revenues.

2. Long distance calls originating from mobile phones are included in the wireless section of this report. However, revenues and minutes from wireline and wireless long distance calls associated with calling cards are included in the wireline voice sector.

Source: CRTC data collection

Statistical information – Wireline voice market sector

Table 5.2.1 Local and access, and long distance revenues, local lines, and long distance minutes

        CAGR       
2006 – 2010
  2006 2007 2008 2009   2010
Total local and access
revenues ($ millions)
9,618 9,544 9,550 9,386 9,132 -1.3%
Annual Growth -1.5% -0.8% 0.1% -1.7%   -2.7%  
Less: contribution revenues
($ millions)
238 219 209 203  # 165 -8.8%
Local and access service revenues ($ millions) 9,380 9,324 9,342 9,183   8,967 -1.1%
Annual Growth -1.4% -0.6% 0.2% -1.7%   -2.4%  
Long distance revenues
($ millions)
4,742 4,318 4,153 3,856   3,432 -7.8%
Annual Growth -7.2% -8.9% -3.8% -7.1%   -11.0%  
Local and access and long distance revenues ($ millions) 14,122 13,642 13,494 13,039   12,399 -3.2%
Annual Growth -3.4% -3.4% -1.1% -3.4%   -4.9%  
Local lines including access-independent VoIP lines (thousands) 21,000 20,926 20,947 20,348   19,996 -1.2%
Annual Growth 1.1% -0.4% 0.1% -2.9%   -1.7%  
Access-independent VoIP lines (thousands) 161 167 153 161   n.a. -
Annual Growth n.a. 3.7% -8.5% 5.0%      
Long distance minutes
(millions)
71,998 72,345 70,231 70,035   70,922 -0.4%
Annual Growth 7.9% 0.5% -2.9% -0.3%   1.3%  

Source: CRTC data collection

Table 5.2.2 Local and access, and long distance forborne revenues and lines (Percent)

  2008 2009 2010
Forborne revenues      
Local and access 75 71 73
Long distance 94 96 96
Forborne local lines      
Residential 77 77 80
Business 68 68 72

Source: CRTC data collection

Table 5.2.3 Local and access and long distance revenues, by service category

  CAGR
2007 – 2010
  2007 2008 2009 2010
Local and access          
Residential 4,847 4,869 4,794 4,732 -0.8%
Annual Growth -2.0% 0.5% -1.5% -1.3%  
Business 3,581 3,552 3,514 3,386 -1.9%
Annual Growth 1.9% -0.8% -1.1% -3.7%  
Subtotal retail 8,428 8,421 8,308 8,117 -1.2%
Annual Growth -0.4% -0.1% -1.3% -2.3%  
Wholesale 814 851 824 798 -0.7%
Annual Growth -1.6% 4.6% -3.2% -3.1%  
Total local and access 9,242 9,272 9,132 8,915 -1.2%
Annual Growth -0.5% 0.3% -1.5% -2.4%  
Long distance          
Residential 2,251 2,170 1,999 1,728 -8.4%
Annual Growth -6.6% -3.6% -7.9% -13.6%  
Business 1,299 1,156 1,077 907 -11.3%
Annual Growth -11.3% -11.0% -6.9% -15.8%  
Subtotal retail 3,550 3,326 3,076 2,634 -9.5%
Annual Growth -8.4% -6.3% -7.5% -14.4%  
Wholesale 768 827 780 797 1.3%
Annual Growth -11.4% 7.7% -5.7% 2.2%  
Total long distance 4,318 4,153 3,856 3,432 -7.4%
Annual Growth -8.9% -3.8% -7.1% -11.0%  
Local and access, and
 long distance
         
Residential 7,098 7,039 6,793 6,459 -3.1%
Annual Growth -3.5% -0.8% -3.5% -4.9%  
Business 4,880 4,708 4,591 4,292 -4.2%
Annual Growth -2.0% -3.5% -2.5% -6.5%  
Subtotal retail 11,978 11,747 11,384 10,751 -3.5%
Annual Growth -2.9% -1.9% -3.1% -5.6%  
Wholesale 1,582 1,678 1,604 1,595 0.3%
Annual Growth -6.6% 6.1% -4.4% -0.5%  
Total local and access, and long distance 13,560 13,425 12,988 12,347 -3.1%
Annual Growth -3.4% -1.0% -3.3% -4.9%  

Source: CRTC data collection

Table 5.2.4 Local and access revenues, by type of TSP ($ millions)

  CAGR
2007 – 2010
  2007 2008 2009 2010
Residential          
Incumbent TSPs (excluding out-of-territory) 4,096 3,827 3,546 3,349 -6.5%
Annual Growth -8.1% -6.6% -7.3% -5.6%  
Incumbent TSPs (out-of-territory) 6 10 9 9 16.1%
Annual Growth 12.7% 69.4% -5.9% -1.8%  
Non-incumbent, alternative TSPs
 (excluding cable BDUs)
86 126 140 123 12.8%
Annual Growth 20.0% 47.7% 10.7% -12.2%  
Cable BDUs 659 906 1,099 1,252 23.8%
Annual Growth 59.4% 37.4% 21.3% 13.9%  
Total residential 4,847 4,869 4,794 4,732 -0.8%
Annual Growth -2.0% 0.5% -1.5% -1.3%  
Business          
Incumbent TSPs (excluding out-of-territory) 3,114 3,096 3,017 2,934 -2.0%
Annual Growth 3.0% -0.6% -2.6% -2.7%  
Incumbent TSPs (out-of-territory) 323 309 309 270 -5.8%
Annual Growth 3.2% -4.3% -0.1% -12.6%  
Non-incumbent, alternative TSPs 144 147 189 182 8.1%
Annual Growth -19.0% 2.0% 28.7% -3.9%  
Total business 3,581 3,552 3,514 3,386 -1.9%
Annual Growth 1.9% -0.8% -1.1% -3.7%  
Retail          
Incumbent TSPs (excluding out-of-territory) 7,210 6,923 6,563 6,282 -4.5%
Annual Growth -3.6% -4.0% -5.2% -4.3%  
Incumbent TSPs (out-of-territory) 329 319 318 279 -5.4%
Annual Growth 3.4% -3.1% -0.3% -12.3%  
Non-incumbent, alternative TSPs 889 1,180 1,428 1,556 20.5%
Annual Growth 34.1% 32.7% 21.0% 9.0%  
Total retail 8,428 8,421 8,308 8,117 -1.2%
Annual Growth -0.4% -0.1% -1.3% -2.3%  
Wholesale          
Incumbent TSPs (excluding out-of-territory) 664 686 660 653 -0.6%
Annual Growth -0.4% 3.2% -3.8% -1.1%  
Incumbent TSPs (out-of-territory) 109 114 115 105 -1.5%
Annual Growth -18.3% 4.3% 0.4% -8.6%  
Non-incumbent, alternative TSPs 40 51 49 41 0.3%
Annual Growth 54.4% 27.2% -3.7% -17.6%  
Total wholesale 814 851 824 798 -0.7%
Annual Growth -1.6% 4.6% -3.2% -3.1%  
Total          
Incumbent TSPs (excluding out-of-territory) 7,874 7,609 7,223 6,935 -4.1%
Annual Growth -3.3% -3.4% -5.1% -4.0%  
Incumbent TSPs (out-of-territory) 438 433 432 383 -4.4%
Annual Growth -3.0% -1.2% -0.1% -11.3%  
Non-incumbent, alternative TSPs 929 1,231 1,477 1,597 19.8%
Annual Growth 34.9% 32.4% 20.0% 8.1%  
Total revenues 9,242 9,272 9,132 8,915 -1.2%
Annual Growth -0.5% 0.3% -1.5% -2.4%  

Source: CRTC data collection

Table 5.2.5 Local and access lines, by type of TSP (thousands)

  CAGR
2007 – 2010
  2007 2008 2009 2010
Residential          
Incumbent TSPs (excluding out-of-territory) 10,356 9,541 8,818 8,142 -7.7%
Annual Growth -6.7% -7.9% -7.6% -7.7%  
Incumbent TSPs (out-of-territory) 26 27 28 27 0.3%
Annual Growth 25.4% 2.9% 4.6% -6.1%  
Non-incumbent, alternative TSPs
(excluding cable BDUs)
231 505 416 463 26.1%
Annual Growth -1.6% 118.7% -17.6% 11.3%  
Cable BDUs 2,313 2,917 3,425 3,947 19.5%
Annual Growth 45.5% 26.1% 17.4% 15.2%  
Total residential 12,927 12,990 12,687 12,578 -0.9%
Annual Growth -0.2% 0.5% -2.3% -0.9%  
Business          
Incumbent TSPs (excluding out-of-territory) 5,252 5,270 4,968 4,721 -3.5%
Annual Growth -0.2% 0.4% -5.7% -5.0%  
Incumbent TSPs (out-of-territory) 640 614 617 638 -0.1%
Annual Growth 4.2% -4.0% 0.5% 3.3%  
Non-incumbent, alternative TSPs 438 390 435 457 1.4%
Annual Growth 12.4% -11.1% 11.7% 5.0%  
Total business 6,330 6,274 6,021 5,815 -2.8%
Annual Growth 1.0% -0.9% -4.0% -3.4%  
Retail          
Incumbent TSPs (excluding out-of-territory) 15,608 14,811 13,786 12,863 -6.2%
Annual Growth -4.6% -5.1% -6.9% -6.7%  
Incumbent TSPs (out-of-territory) 666 641 646 664 -0.1%
Annual Growth 4.9% -3.8% 0.7% 2.9%  
Non-incumbent, alternative TSPs 2,983 3,812 4,276 4,867 17.7%
Annual Growth 34.7% 27.8% 12.2% 13.8%  
Total retail 19,257 19,264 18,708 18,394 -1.5%
Annual Growth 0.2% 0.0% -2.9% -1.7%  
Wholesale          
Incumbent TSPs (excluding out-of-territory) 551 623 533 515 -2.2%
Annual Growth 22.1% 13.2% -14.4% -3.4%  
Incumbent TSPs (out-of-territory) 405 262 300 266 -13.0%
Annual Growth -13.9% -35.4% 14.6% -11.2%  
Non-incumbent, alternative TSPs 84 97 99 88 1.4%
Annual Growth 75.6% 15.4% 1.7% -11.1%  
Total wholesale 1,040 982 932 870 -5.8%
Annual Growth 7.3% -5.5% -5.1% -6.7%  
Total          
Incumbent TSPs (excluding out-of-territory) 16,159 15,434 14,319 13,378 -6.1%
Annual Growth -3.9% -4.5% -7.2% -6.6%  
Incumbent TSPs (out-of-territory) 1,071 903 946 931 -4.6%
Annual Growth -3.1% -15.7% 4.7% -1.6%  
Non-incumbent, alternative TSPs 3,067 3,909 4,375 4,955 17.3%
Annual Growth 35.5% 27.5% 11.9% 13.2%  
Total lines 20,297 20,246 19,640 19,263 -1.7%
Annual Growth 0.5% -0.2% -3.0% -1.9%  

Source: CRTC data collection

Table 5.2.6 Local and long distance retail monthly revenues per line

  CAGR
2007 – 2010
  2007 2008 2009 2010
Local and long distance                        
Residential  45.76  45.15  44.62 42.79 -2.2%
Annual Growth -3.4% -1.3% -1.2% -4.1%  
Business  64.24  62.53  63.55 61.50 -1.4%
Annual Growth -2.9% -2.7% 1.6% -3.2%  
Total retail  51.83  50.81  50.71 48.71 -2.1%
Annual Growth -3.1% -2.0% -0.2% -3.9%  

Source: CRTC data collection

Table 5.2.7 Local and access retail monthly revenues ($), per line by type of TSP

  CAGR
2007 – 2010
  2007 2008 2009 2010
Residential          
Incumbent TSPs (excluding out-of-territory)  32.96  33.43 33.51  34.27 1.3%
Annual Growth -1.5% 1.4% 0.3% 2.3%  
Incumbent TSPs (out-of-territory)  17.83  29.36  26.42  27.62 15.7%
Annual Growth -10.1% 64.7% -10.0% 4.6%  
Non-incumbent, alternative TSPs
(excluding cable BDUs)
 30.91  20.87  28.04  22.10 -10.6%
Annual Growth 21.9% -32.5% 34.4% -21.2%  
Cable BDUs  23.75  25.88  26.73  26.42 3.6%
Annual Growth 9.6% 9.0% 3.3% -1.1%  
Total residential  31.25  31.24  31.49  31.35 0.1%
Annual Growth -1.9% 0.0% 0.8% -0.4%  
Business          
Incumbent TSPs (excluding out-of-territory)  49.41  48.95  50.60  51.79 1.6%
Annual Growth 3.2% -0.9% 3.4% 2.4%  
Incumbent TSPs (out-of-territory)  42.08  41.94  41.67  35.26 -5.7%
Annual Growth -0.9% -0.3% -0.6% -15.4%  
Non-incumbent, alternative TSPs  27.39  31.43  36.22  33.17 6.6%
Annual Growth -28.0% 14.7% 15.2% -8.4%  
Total business  47.14  47.18  48.64  48.51 1.0%
Annual Growth 0.9% 0.1% 3.1% -0.3%  
Retail          
Incumbent TSPs (excluding out-of-territory)  38.49  38.95  39.67  40.70 1.9%
Annual Growth 1.1% 1.2% 1.8% 2.6%  
Incumbent TSPs (out-of-territory)  41.12  41.41  41.00  34.95 -5.3%
Annual Growth -1.5% 0.7% -1.0% -14.8%  
Non-incumbent, alternative TSPs  24.84  25.79  27.82  26.65 2.4%
Annual Growth -0.4% 3.8% 7.9% -4.2%  
Total retail  36.47  36.43  37.01  36.78 0.3%
Annual Growth -0.6% -0.1% 1.6% -0.6%  

Source: CRTC data collection

Table 5.2.8 Incumbent TSP provincial retail local market share, by line

Province 2008 2009 2010
British Columbia 80.1% 75.6% 67.3%
Alberta 76.4% 71.7% 68.2%
Saskatchewan 95.9% 94.3% 93.0%
Manitoba 89.7% 87.1% 83.7%
Ontario 77.4% 73.4% 70.2%
Quebec 72.5% 67.0% 62.8%
New Brunswick 92.9% 87.5% 85.1%
Nova Scotia 73.8% 70.4% 67.8%
Prince Edward Island 82.5% 79.2% 74.7%
Newfoundland and Labrador 91.8% 90.6% 89.4%
All provinces 78.1% 73.8% 69.8%

Source: CRTC data collection

Table 5.2.9 Incumbent TSP residential and business local market share, by line for major centres1

Province Major centre Residential lines Business lines
2009 2010 2009 2010
British Columbia Vancouver 67.0% 57.6% 73.6% 70.8%
  Victoria 56.3% 47.1% 81.4% 84.2%
Alberta Calgary 58.3% 49.6% 70.1% 68.8%
  Edmonton 65.0% 58.1% 72.8% 71.8%
Saskatchewan Saskatoon 83.0% 77.1% 97.9% 99.1%
  Regina 88.5% 86.8% 99.0% 98.6%
Manitoba Winnipeg 70.3% 62.8% 97.1% 98.1%
Ontario Toronto 62.5% 60.3% 76.0% 73.3%
  Ottawa  – Gatineau 64.2% 60.4% 89.1% 88.6%
  Hamilton 62.9% 59.2% 80.8% 76.8%
  London 64.5% 62.3% 76.9% 76.5%
  Kitchener  – Waterloo 63.3% 60.5% 77.0% 76.8%
  St. Catharines  – Niagara 72.8% 68.2% 83.2% 80.5%
  Windsor 74.5% 70.3% 73.4% 69.7%
  Oshawa 60.5% 57.0% 86.1% 84.1%
Quebec Montréal 55.5% 51.7% 74.6% 74.4%
  Québec 51.3% 46.0% 71.5% 76.8%
New Brunswick Fredericton 76.4% 75.3% 99.3% 99.4%
Nova Scotia Halifax 51.3% 46.7% 77.0% 75.8%
Prince Edward Island Charlottetown 60.7% 56.0% 84.2% 84.1%
Newfoundland and Labrador St. John's 81.6% 77.0% 85.4% 88.2%

1. Major centre boundaries are defined using Statistics Canada’s census metropolitan area and census agglomeration definitions.

Source: CRTC data collection

Table 5.2.10 Local wholesale revenues, by major component ($ millions)

  CAGR
2006 – 2010
  2006 2007 2008 2009 2010
Interconnection 293 273 281 280 276 -1.5%
Centrex 106 104 97 97 89 -4.4%
PSTN access 256 261 280 290 288 3.0%
Unbundled loops 119 120 116 92 79 -9.8%
Other revenues 53 45 47 33 42 -5.5%
Total 827 802 821 792 774 -1.7%

Source: CRTC data collection

Figure 5.2.1 Alternative TSP local retail lines (excluding incumbent out-of-territory), by type of facility

This bar chart shows local retail lines in thousand, categorized by owned, leased and resold lines for the years 2006 through 2010. For 2006:  Owned lines 1,693, Leased lines 722, and Resold lines 395.  For 2007: Owned lines 2,234, Leased lines 859 and Resold lines 438. For 2008:  Owned lines 2,845, Leased lines 482, and Resold lines 145.  For 2009: Owned lines 3,487, Leased lines 283 and Resold lines 145. For 2010: Owned lines 4,078, Leased lines 181 and Resold lines 167.

Source: CRTC data collection

Figure 5.2.2 Alternative TSP local residential and business lines, by type of facility (2010)

This chart contains two pie graphs. The first, shows alternative TSP local share by type of facility for residence lines:  Owned lines 96%, Leased lines 1%, and Resold lines 3%.  The second graph shows alternative TSP local share by type of facility for business lines:  Owned lines 47%, Leased lines 37%, and Resold lines 16%.

Source: CRTC data collection

Figure 5.2.3 Large incumbent TSP pay telephone quantities and retail revenue per payphone

This chart contains a bar chart depicting the volume of payphones (in thousands) in 2006, 2007, 2008, 2009 and 2010 and a line chart showing retail revenues per payphone for the same years. Payphones: 2006: 110, 2007: 101, 2008: 95, 2009: 89, 2010: 82.  Retail revenue per payphone:  2006: $1,148, 2007:  $1,098, 2008: $1,091, 2009: $969, 2010: $860.

Source: CRTC data collection

Figure 5.2.4 Share of circuit-switched v. VoIP retail local lines

This chart contains two pie graphs. The first shows the share of circuit-switched vs VoIP local lines for the residential market:  Access dependent VoIP: 50%, Access Independent VoIP: 0% and Circuit-switched: 49%. The second shows the share of circuit-switched vs VoIP local lines for the business market:  Access dependent VoIP: 35%, Access Independent VoIP: 3% and Circuit-switched: 62%.

Source: CRTC data collection

Table 5.2.11 Long distance revenues, by type of TSP ($ millions)

  CAGR
2007 – 2010
  2007 2008 2009 2010
Residential          
Incumbent TSPs (excluding out-of-territory) 1,505 1,440 1,288 1,136 -8.9%
Annual Growth -9.0% -4.4% -10.6% -11.8%  
Incumbent TSPs (out-of-territory) 5 3 2 2 -29.9%
Annual Growth -0.2% -47.5% -21.5% -16.4%  
Non-incumbent, alternative TSPs 741 727 709 590 -7.3%
Annual Growth -1.3% -1.8% -2.5% -16.9%  
Total residential 2,251 2,170 1,999 1,728 -8.4%
Annual Growth -6.6% -3.6% -7.9% -13.6%  
Business          
Incumbent TSPs (excluding out-of-territory) 750 686 669 565 -9.0%
Annual Growth -7.6% -8.6% -2.4% -15.6%  
Incumbent TSPs (out-of-territory) 212 176 161 115 -18.4%
Annual Growth -11.6% -17.2% -8.4% -28.2%  
Non-incumbent, alternative TSPs 337 295 247 226 -12.4%
Annual Growth -18.3% -12.5% -16.2% -8.3%  
Total business 1,299 1,156 1,077 907 -11.3%
Annual Growth -11.3% -11.0% -6.9% -15.8%  
Retail          
Incumbent TSPs (excluding out-of-territory) 2,255 2,126 1,957 1,701 -9.0%
Annual Growth -8.6% -5.7% -7.9% -13.1%  
Incumbent TSPs (out-of-territory) 217 178 163 117 -18.6%
Annual Growth -11.4% -17.9% -8.6% -28.1%  
Non-incumbent, alternative TSPs 1,078 1,022 956 816 -8.8%
Annual Growth -7.3% -5.2% -6.4% -14.6%  
Total retail 3,550 3,326 3,076 2,634 -9.5%
Annual Growth -8.4% -6.3% -7.5% -14.4%  
Wholesale          
Incumbent TSPs (excluding out-of-territory) 414 420 373 311 -9.1%
Annual Growth 3.6% 1.4% -11.2% -16.6%  
Incumbent TSPs (out-of-territory) 217 262 231 229 1.8%
Annual Growth -19.7% 20.9% -11.8% -1.1%  
Non-incumbent, alternative TSPs 137 145 176 257 23.5%
Annual Growth -30.6% 6.0% 21.4% 46.3%  
Total wholesale 768 827 780 797 1.3%
Annual Growth -11.4% 7.7% -5.7% 2.2%  
Total          
Incumbent TSPs (excluding out-of-territory) 2,670 2,546 2,330 2,012 -9.0%
Annual Growth -6.9% -4.6% -8.5% -13.6%  
Incumbent TSPs (out-of-territory) 434 440 394 346 -7.3%
Annual Growth -15.7% 1.4% -10.5% -12.2%  
Non-incumbent, alternative TSPs 1,214 1,167 1,132 1,073 -4.0%
Annual Growth -10.7% -3.9% -3.0% -5.2%  
Total revenues 4,318 4,153 3,856 3,432 -7.4%
Annual Growth -8.9% -3.8% -7.1% -11.0%  

Source: CRTC data collection

Table 5.2.12 Long distance retail revenues ($) per minute, by type of TSP

        CAGR       
2007 – 2010
  2007 2008 2009 2010
Residential                                                                
Incumbent TSPs (excluding out-of-territory) 0.115 0.110 0.100 0.092 -7.3%
Annual Growth -5.8% -3.9% -9.5% -8.4%  
Incumbent TSPs (out-of-territory) 0.079 0.069 0.071 0.082 1.0%
Annual Growth -5.0% -12.7% 3.4% 14.1%  
Non-incumbent, alternative TSPs 0.059 0.058 0.054 0.052 -4.5%
Annual Growth -8.7% -2.5% -5.9% -4.9%  
Total residential 0.088 0.085 0.077 0.072 -6.2%
Annual Growth -8.3% -3.6% -9.0% -5.8%  
Business          
Incumbent TSPs (excluding out-of-territory) 0.066 0.067  0.067  0.059 -3.5%
Annual Growth -11.7% 1.0% 0.8% -11.7%  
Incumbent TSPs (out-of-territory)   0.043   0.038  0.037  0.028 -13.4%
Annual Growth 0.5% -10.9% -4.0% -24.0%  
Non-incumbent, alternative TSPs   0.055   0.046  0.039  0.038 -11.1%
Annual Growth -12.0% -15.9% -15.1% -1.7%  
Total business 0.058 0.054   0.052  0.046 -7.1%
Annual Growth -8.7% -6.1% -4.0% -11.0%  
Retail          
Incumbent TSPs (excluding out-of-territory)   0.092   0.091  0.086  0.078 -5.6%
Annual Growth -8.7% -1.2% -6.0% -9.4%  
Incumbent TSPs (out-of-territory)   0.044   0.039  0.037  0.028 -13.4%
Annual Growth 0.6% -11.3% -4.0% -23.7%  
Non-incumbent, alternative TSPs   0.058   0.054  0.049  0.047 -6.5%
Annual Growth -9.6% -6.8% -8.2% -4.5%  
Total retail   0.074   0.071  0.066  0.061 -6.3%
Annual Growth -8.1% -4.0% -6.8% -8.0%  

Source: CRTC data collection

Table 5.2.13 Large incumbent TSPs’ retail long distance revenue market share, by region

Region 2006 2007 2008 2009   2010
B.C., Alberta 66% 75% 73% 74%  # 68%
Saskatchewan 79% 86% 85% 84%   83%
Manitoba 84% 88% 83% 81%  # 78%
Ontario, Quebec 57% 55% 56% 55%  # 61%
Atlantic 79% 82% 81% 80%   81%

Source: CRTC data collection

Figure 5.2.5 Local business market revenue distribution, by customer size and type of provider (2010)

The following combination column chart shows the relative revenue market share for local and access, for small business, medium business, large business, and very large business, for Incumbent TSPs (excluding out-of-territory), non-incumbent Alternative TSPs, and Incumbent TSPs (out-of-territory).  The non-incumbent Alternative TSPs and the Incumbent TSPs (out-of-territory) are stacked, and the combined number will be known as Alternative TSP total. For small business: For Incumbent TSPs (excluding out-of-territory): 89%; For non-incumbent Alternative TSPs: 7%; For Incumbent TSPs (out-of-territory): 4%.  Alternative TSP total is 11%. For medium business: For Incumbent TSPs (excluding out-of-territory): 89%; For non-incumbent Alternative TSPs: 3%; For Incumbent TSPs (out-of-territory): 8%.  Alternative TSP total is 11%. For large business: For Incumbent TSPs (excluding out-of-territory): 86%; For non-incumbent Alternative TSPs: 4%; For Incumbent TSPs (out-of-territory): 11%.  Alternative TSP total is 14%. For very large business: For Incumbent TSPs (excluding out-of-territory): 91%; For non-incumbent Alternative TSPs: 1%; For Incumbent TSPs (out-of-territory): 8%.  Alternative TSP total is 9%.

Source: CRTC data collection

Figure 5.2.6 Long distance business market revenue distribution, by customer size and type of provider (2010)

The following combination column chart shows the relative revenue market share for long distance, for small business, medium business, large business, and very large business, for Incumbent TSPs (excluding out-of-territory), non-incumbent Alternative TSPs, and Incumbent TSPs (out-of-territory). The non-incumbent Alternative TSPs and the Incumbent TSPs (out-of-territory) are stacked, and the combined number will be known as Alternative TSP total. For small business: For Incumbent TSPs (excluding out-of-territory): 86%; For non-incumbent Alternative TSPs: 6%; For Incumbent TSPs (out-of-territory): 8%.  Alternative TSP total is 14%. For medium business: For Incumbent TSPs (excluding out-of-territory): 82%; For non-incumbent Alternative TSPs: 6%; For Incumbent TSPs (out-of-territory):12%.  Alternative TSP total is 18%. For large business: For Incumbent TSPs (excluding out-of-territory): 68%; For non-incumbent Alternative TSPs: 14%; For Incumbent TSPs (out-of-territory): 17%.  Alternative TSP total is 32%. For very large business: For Incumbent TSPs (excluding out-of-territory): 58%; For non-incumbent Alternative TSPs: 23%; For Incumbent TSPs (out-of-territory): 19%.  Alternative TSP total is 42%.

Source: CRTC data collection

5.3 Internet market sector and broadband availability

This pie chart shows the percentage of Internet revenues as a proportion of all telecommunications revenues.  In 2010, these revenues were 16% of all telecommunications revenues.

Overview

The Internet access industry consists of an estimated 500 entities.

Incumbent TSPs provide Internet services using mainly dial up, DSL, fibre optic, satellite, and fixed wireless facilities. Cable companies provide Internet services using cable modem, fibre optic, and fixed wireless facilities. Utility telcos, municipalities, and other TSPs provide Internet services using dial up, DSL, fibre optic, satellite, and fixed wireless facilities. Resellers essentially rely on facilities-based TSPs to provide them with facilities on a wholesale basis. Resellers provide mainly dial up Internet access service, as well as high-speed Internet service, generally using leased DSL facilities and, to a lesser extent, cable modem and fibre optic facilities.

Internet sector and broadband availability at a glance

  2009   2010 % Growth
Revenues ($ billions) 6.5 # 6.8 4.2
Internet access and transport        
Residential 4.3   4.5 5.9
Business 1.1   1.2 10.7
Wholesale 0.3   0.3 -0.3
Other 0.9   0.8 -11.0
Residential subscribers (millions) 10.1   10.4 3.1
Residential high-speed access revenues per subscriber per month $36.06   $36.99  
Internet access revenue market share        
Top 5 major ISPs (including affiliates) 76%   76%  
Cable operators 50%   50%  
ILECs (excluding out-of-territory) 38%   38%  
Residential broadband availability (excluding satellite)        
National 95%   96%  
Urban 100%   100%  
Rural 84%   85%  
National including HSPA+ -   98%  
Residential penetration: All speeds 75%   77%  
                 High-speed 72%   74%  
                 Broadband (1.5 Mbps and higher) 62%   70%  
                 Broadband (5 Mbps and higher) 44%   52%  
Average gigabytes downloaded per month per residential subscriber 12.0   14.8  
Average gigabytes uploaded per month per residential subscriber 3.4   3.7  
Monthly average residential high-speed service churn rate 1.57 # 1.62 3.11
Monthly average business high-speed service churn rate 1.56   1.56 -0.26
  • The average gigabytes uploaded and downloaded are based on a weighted average of the 15 largest providers in Canada.

Source: CRTC data collection

Statistical information – Internet market sector

Table 5.3.1 Internet revenues ($ millions)

   % growth  2009-2010      CAGR      2006-2010
                                                         2006 2007 2008 2009 2010    
Residential Incumbent TSPs (excluding out-of-territory)                      
   Dial-up 159   141   116   92   64 -30.3% -20.4%
   High-speed 1,160   1,331   1,406   1,506   1,588 5.4% 8.2%
 Subtotal 1,319   1,469   1,522   1,598   1,652 3.4% 5.8%
Cable BDUs                      
   Dial-up 8   5   2   1   1 -23.3% -39.4%
   High-speed 1,649   1,935   2,129   2,419   2,572 6.3% 11.8%
 Subtotal 1,657   1,940   2,131   2,420   2,573 6.3% 11.6%
Incumbent TSPs (excluding out-of-territory) and cable BDUs subtotal                      
   Dial-up 167   145   118   93   65 -30.2% -34.2%
   High-speed 2,809   3,264   3,535   3,925   4,160 6.0% 10.3%
Subtotal 2,976   3,409   3,654   4,018   4,225 5.1% 9.2%
Other TSPs                      
    Dial-up 112   83   71   48   31 -34.6% -27.4%
    High-speed 103   128   175   219   282 28.7% 28.6%
 Subtotal 215   214   245   267   313 17.4% 9.9%
Total                      
   Dial-up 279   228   189   141   96 -31.7% -23.4%
   High-speed 2,912   3,394   3,710   4,144   4,442 7.2% 11.1%
Residential total 3,191   3,622   3,899   4,285   4,538 5.9% 9.2%
Business Incumbent TSPs (excluding out-of-territory)                      
406   434   457   444   478 7.6% 4.2%
Cable BDUs 134   169   201   227   284 25.0% 20.7%
Incumbent TSPs (excluding out-of-
territory) and cable BDUs subtotal
                     
540   604   657   671   762 13.5% 9.0%
Other TSPs                      
Incumbent TSPs
  (out-of-territory)
98   112   98   93   81 -12.6% -4.6%
Resellers, utility telcos,
  and other carriers
236   223   241   255   282 10.7% 4.5%
Other TSPs subtotal 335   335   339   348   364 4.5% 2.1%
Business access total 874   938   997   1,019   1,125 10.4% 6.5%
Business transport total 50   73   76   67   77 15.2% 11.4%
Business total 924   1,011   1,073   1,086   1,202 10.7% 6.8%
Wholesale
Access
Higher capacity access and transport 77   54   54   48   42 -12.2% -14.1%
Lower capacity access 125   147   161   213   218 2.3% 15.0%
Wholesale total 202   201   215   261   260 -0.3% 6.6%
Other Applications, equipment, and other Internet-related services 679 # 778 # 939 # 868 # 772 -11.0% 3.3%
  Grand total 4,996 # 5,613 # 6,126 # 6,499 # 6,772 4.2% 7.9%
  • Wholesale Internet access and transport services are generally sold to ISPs. These services are used by the ISPs to provide Internet access service to their retail customers. Sales to non ISP entities, such as VoIP service providers, are included in the wholesale revenues presented in Table 5.3.1 as “Higher capacity access and transport” revenues.
  • “Lower capacity access” includes services such as Bell Canada's GAS, TCC's VPOP, DSL, and cable BDU-provided TPIA service, as well as satellite capacity and dial up bundled with Internet access sold to ISPs.
  • In previous years, modem rental fees for residential service were included with Internet access service revenues. However, the fees are no longer included as of 2008. In 2008, the fees were approximately $121 million.

Source: CRTC data collection

Figure 5.3.1 Internet access revenue share, by type of entity, 2010

These two pie charts describe the percentage revenue market share of various industry participant groups for residential and business Internet access markets: Residential pie chart: Incumbent TSPs (excluding out-of-territory): 36%; Cable BDUs: 57%; Incumbent TSPs (out-of-territory): 0%; Resellers, utility telcos, and other carriers: 7%. Business pie chart: Incumbent TSPs (excluding out-of-territory): 43%; Cable BDUs: 25%; Incumbent TSPs (out-of-territory): 7%; Resellers, utility telcos, and other carriers: 25%

Source: CRTC data collection

Figure 5.3.2 Business Internet access revenues, by access technology (2006 v. 2010)

These two pie charts describe the percentage of business access revenue by technology.  For 2006: DSL: 46%; Cable: 9%; Fiber: 28%; Other: 8%; Dial-up: 9%. And for 2010: DSL: 45%; Cable: 18%; Fiber: 27%; Other: 8%; Dial-up: 2%.
  • “Other” includes the remaining technologies, such as (but not limited to) ISDN, fixed wireless, and satellite technologies.

Source: CRTC data collection

Table 5.3.2 Residential Internet subscribers, by type of TSP

  2006 2007 2008 2009 2010      CAGR     
2006-2010
Incumbent TSPs (excluding out-of-territory)            
Dial-up 642 566 433 286 210 -24.4%
% annual growth   -11.8 -23.5 -33.9 -26.6  
% share of total dial-up 51.8 60.6 59.1 58.8 57.3  
High-speed 3,095 3,405 3,584 3,673 3,762 5.0%
% annual growth   10.0 5.3 2.5 2.4  
% share of total high-speed 41.5 40.7 39.5 38.4 37.6  
Subtotal 3,736 3,971 4,017 3,959 3,972 1.5%
% annual growth   6.3 1.2 -1.4 0.3  
% share of total 42.9 42.7 40.9 39.3 38.3  
Cable BDUs            
Dial-up 38 18 18 14 10 -27.7%
% annual growth   -53.8 1.9 -24.4 -23.0  
% share of total dial-up 3.1 1.9 2.4 2.8 2.8  
High-speed 4,041 4,573 4,990 5,358 5,642 8.7%
% annual growth   13.2 9.1 7.4 5.3  
% share of total high-speed 54.2 54.7 55.0 56.0 56.4  
Subtotal 4,079 4,590 5,008 5,372 5,653 8.5%
% annual growth   12.5 9.1 7.3 5.2  
% share of total 46.9 49.5 51.1 53.4 54.5  
Incumbent TSPs (excluding out-of-territory) and cable BDUs subtotal            
Dial-up 680 584 451 299 220 -24.5%
% annual growth   -14.1 -22.8 -33.6 -26.5  
% share of total dial-up 54.8 62.5 61.6 61.6 60.1  
High-speed 7,136 7,978 8,574 9,031 9,404 7.1%
% annual growth   11.8 7.5 5.3 4.1  
% share of total high-speed 95.6 95.5 94.5 94.3 94.0  
Subtotal 7,815 8,561 9,024 9,331 9,625 5.3%
% annual growth   9.5 5.4 3.4 3.1  
% share of total 89.8 92.2 92.0 92.7 92.8  
Other TSPs            
Dial-up 560 350 281 187 146 -28.5%
% annual growth   -37.4 -19.7 -33.6 -21.7  
% share of total dial-up 45.2 37.5 38.4 38.4 39.9  
High-speed 327 379 503 545 604 16.6%
% annual growth   16.0 32.9 8.2 10.8  
% share of total high-speed 4.4 4.5 5.5 5.7 6.0  
Subtotal 886 729 785 731 750 -4.1%
% annual growth   -17.7 32.9 8.2 2.5  
% share of total 10.2 7.8 8.0 7.3 7.2  
Total            
Dial-up 1,239 934 732 486 366 -26.3%
% annual growth   -24.7 -21.6 -33.6 -24.6  
% share of total 14.2 10.0 7.5 4.8 3.5  
High-speed 7,461 8,356 9,077 9,576 10,008 7.6%
% annual growth   12.0 8.6 5.5 4.5  
% share of total 85.8 90.0 92.5 95.2 96.5  
Grand total 8,700 9,290 9,809 10,062 10,375 4.5%
% annual growth   6.8 5.6 2.6 3.1  

Source: CRTC data collection

Table 5.3.3 Residential Internet plans and pricing

  2006 2007 2008 2009 2010
Downstream speed One-month revenue (%)
Lite and wideband up to 256 Kbps 6.6% 6.8% 2.9% 0.6% # 0.2%
Wideband 300 to 1400 Kbps 11.9% 12.2% 15.1% 8.6% # 4.3%
Broadband            
  1.5 to 4 Mbps 14.7% 14.0% 17.3% 20.9% # 20.9%
  5 to 9 Mbps 60.3% 58.0% 53.6% 46.5% # 49.1%
  10 to 15 Mbps 6.3% 8.7% 10.8% 22.4% # 22.8%
  16 to 100 Mbps 0.2% 0.2% 0.3% 1.0%   2.7%
Total sample 242.1 268.9 306.4 320.7 # 350.0
Downstream speed Subscribers (%) 
Lite and wideband up to 256 Kbps 10.1% 10.0% 4.3% 1.1% # 0.3%
Wideband 300 to 1400 Kbps 14.7% 15.3% 19.8% 12.2% # 5.8%
Broadband            
  1.5 to 4 Mbps 15.1% 15.3% 17.0% 24.5% # 24.2%
  5 to 9 Mbps 54.8% 52.5% 50.1% 42.6% # 45.3%
  10 to 15 Mbps 5.2% 6.8% 8.6% 19.0% # 22.4%
  16 to 100 Mbps 0.1% 0.1% 0.2% 0.6%   2.0%
Total sample 6,880.3 7,576.6 8,184.4 8,516.8 # 8,983.1
Downstream speed                       Average revenue per subscriber                      
Lite and wideband up to 256 Kbps $22.91 $24.37 $24.86 $19.55 # $25.18
Wideband 300 to 1400 Kbps $28.30 $28.29 $28.57 $26.84   $28.87
Broadband            
  1.5 to 4 Mbps $34.24 $32.53 $38.22 $32.46   $33.57
  5 to 9 Mbps $38.74 $39.26 $40.00 $41.14 # $42.23
  10 to 15 Mbps $43.17 $45.23 $47.06 $44.43   $39.67
  16 to 100 Mbps $81.30 $51.17 $63.06 $65.08   $53.71
Total sample $35.18 $35.50 $37.44 $37.80 # $38.96
Downstream speed Weighted-average upload speed (Kbps)
Lite and wideband up to 256 Kbps 94 118 131 152 # 209
Wideband 300 to 1400 Kbps 306 294 286 267 # 352
Broadband            
  1.5 to 4 Mbps 537 537 809 656 # 584
  5 to 9 Mbps 619 677 744 723 # 870
  10 to 15 Mbps 742 815 862 751   797
  16 to 100 Mbps 1,006 1,000 1,120 1,085   1,735
Total sample 514 552 649 652 # 769
Weighted-average download speed   3,826 4,227 4,928 5,945 # 7,060
Downstream speed  Weighted-average upload/download limit in gigabytes (GB) 
Lite and wideband up to 256 Kbps 8.50  11.75   -
Wideband 300 to 1400 Kbps 8.75 3.04    7.20
Broadband            
  1.5 to 4 Mbps 43.25  32.20   22.13
  5 to 9 Mbps 54.18  42.80   45.27
  10 to 15 Mbps 80.81  69.53   74.28
  16 to 25 Mbps 101.91  104.14   112.94
Total sample - - 42.34 40.32   45.04
  1. Weighted average download limits are calculated only for those plans that have limits.
  2. 2008, 2009 and 2010 data excludes terminal rental revenues.

Source: CRTC data collection

Figure 5.3.3 Residential Internet access technology mix (2006 v. 2010)

These two pie charts describe the percentage of residential subscriptions by technology.  For 2006: DSL: 38%; Cable: 50%; Dial-up: 10%; Other: 2%. And for 2010: DSL: 39%; Cable: 55%; Dial-up: 4%; Other: 3%.

Source: CRTC data collection

Figure 5.3.4 Broadband (greater than 1.5 Mbps) subscriptions

This two line chart describes, for the years 2006 to 2010, the number of subscriptions of broadband for Incumbent TSPs and for Cable BDUs.  For 2006: 2,440, 2,853; For 2007: 2756, 3206; For 2008: 3,009, 3,520; For 2009: 3,338, 4,495; For 2010: 3,553, 5,280

Source: CRTC data collection

Figure 5.3.5 Residential Internet Protocol provisioned service revenues

This column chart describes the revenue in billions of dollars delivered by various Internet Protocol based services.  IPTV is $0.2 billion, Internet Access is $4.5 billion, voice via cable is $1.2 billion.  Total revenues are $6.0 billion.

Source: CRTC data collection

Broadband availability - Statistical information

Table 5.3.4 Key telecommunications availability indicators


Platform
Availability (% of households)
2006 2007 2008 2009 2010
Mobile broadband              
3G / 3G equivalent na 78 91   96   98
HSPA+ na na na   na   97
Landline broadband              
DSL na na 84   85   85
Cable modem na na 80   80   82
Fixed wireless na na 80 # 81 # 82
IPTV 8 10 10   21 # 22
Digital satellite National National National National National
  • IPTV availability from 2006 to 2009 is as of 31 August. In 2010 the availability is as of 31 December.

Source: CRTC data collection

Figure 5.3.6 Broadband availability (percentage of households. 2010)

This column chart describes, for 2009 and 2010, the availability of broadband via various access means.  For 2009, DSL was at 85%, Cable modem was at 80%, Fixed-wireless and Satellite was at 82%, for a total availability of 96%.  For 2010, DSL was at 85%, Cable modem was at 82%, Fixed-wireless and Satellite was at 83%, Mobile was at 96%, for a total availability of 98%.

Source: CRTC data collection

Figure 5.3.7 Broadband availability, by speed (2010 v. 2009, percentage of households)

This column chart describes the availability of broadband by various download speeds, in Mbps for 2009 and 2010, excluding HSPA.  For 1.5 to 4.9 Mbps: 95%, 96%; for 5 to 9.9 Mbps: 82%, 86%; for 10 to 15.9 Mbps: 77%, 81%; for 16 to 24.9 Mbps: 45%, 70%; For 30 Mbps to 49.9 Mbps: 30%, 66%; 50 Mbps to 99.9 Mbps: 30%, 60%; and 100 Mbps and higher: 11%, 16%.
  • Excludes HSPA

Source: Industry Canada and CRTC data collection

Figure 5.3.8 Broadband availability – Urban v. rural (percentage of households) (2010)

This column chart shows broadband availability in urban and rural areas various download speeds, in Mbps.  For 1.5 to 4.9 Mbps: 100%, 85%, with an additional 11% in rural areas via HSPA; for 5 to 9.9 Mbps: 99%, 53%; for 10 to 15.9 Mbps: 98%, 41%; for 15 to 24.9 Mbps: 95%, 31%; For 30 Mbps to 49.9 Mbps: 84%, 20%; 50 Mbps to 99.9 Mbps: 71%, 17%; and 100 Mbps and higher: 21%, 3%.

Source: Industry Canada and CRTC data collection

Figure 5.3.9 Broadband availability v. broadband subscriptions (2010)

This stacked column chart describes, for the provinces of Canada, the availability of broadband via fixed technology, with a stacked element for the additional coverage provided by HSPA mobile technology.  In addition, it shows the subscriber take-up percentage of broadband subscriptions per province via fixed technology.  BC: 95%, HSPA adds 4%, take-up rate is 75%; AB: 97%, HSPA adds 3%, take-up rate is 71%; SK: 95% , HSPA adds 3%, take-up rate is 65%; MB: 89%, HSPA adds 0%, take-up rate 59%; ON: 98%, HSPA adds 2%, take-up rate is 71%; QC: 94%, HSPA adds 6%, take-up rate is 65%; NB: 100%, HSPA adds 0%, take-up rate is 65%; NS: 100%, HSPA adds 0%, take-up rate is 69%; PEI: 100%, HSPA adds 0%, take-up rate is 72%; NL: 82%, HSPA adds 17%, take-up rate is 70%; North: 79%, HSPA adds 1%, take-up rate is 69%; Canada: 96%, HSPA adds 2%, take-up rate is 70%.

Source: Industry Canada and CRTC data collection

Table 5.3.5 Number of households that can have broadband access (thousands)

Province 2008 2009 2010
British Columbia 1,659   1,691   1,731
Alberta 1,339   1,368   1,388
Saskatchewan 389   394   400
Manitoba 424 # 429 # 434
Ontario 4,738   4,812   4,853
Quebec 3,028   3,062   3,145
New Brunswick 257   304   305
Nova Scotia 387   388   389
Prince Edward Island 54   55   56
Newfoundland and Labrador 155   155   163
North 26   26   30
Canada 12,456 # 12,684 # 12,895

Source: CRTC data collection

Table 5.3.6 Broadband availability, by speed and province (2010, percentage of households)

Province 1.5 - 5 Mbps 5 – 10 Mbps 10 - 16 Mbps 16 - 25 Mbps 25-100 Mbps
British Columbia 95% 91% 90% 81% 69%
Alberta 97% 85% 84% 82% 75%
Saskatchewan 95% 73% 63% 54% 54%
Manitoba 89% 80% 58% 54% 54%
Ontario 98% 89% 85% 81% 72%
Quebec 94% 84% 80% 79% 73%
New Brunswick 100% 81% 72% 71% 71%
Nova Scotia 100% 79% 71% 50% 50%
Prince Edward Island 99% 71% 54% 44% 44%
Newfoundland and Labrador 82% 77% 64% 40% 40%
  • Excludes HSPA
  • Availability or speed greater than 25 Mbps have been combined due to the confidentiality of the data

Source: CRTC data collection

Table 5.3.7 Connected buildings with DS3 connections or higher in 32 major centres, by province

Province (number of major centres)  Number of buildings
of interest
Percent with a DS3
connection or higher
British Columbia (4) 15,096 17%
Alberta (4) 12,557 24%
Saskatchewan (2) 2,842 20%
Manitoba (1) 3,575 7%
Ontario (10) 40,751 13%
Quebec (5) 31,617 17%
New Brunswick (3) 1,901 18%
Nova Scotia (1) 1,661 24%
Prince Edward Island (1) 447 27%
Newfoundland & Labrador (1) 1,415 14%
Canada 111,862 16%
     
  Incumbent Competitor
Connection provider 62% 55%
  • “Buildings of interest” refers to buildings that have occupants with an industry classification that generally demands a DS3 connection, or higher, for their operations. Examples include office buildings, health services buildings, malls and shopping centres, large manufacturing, large warehouses, buildings containing professional and educational services, financial institutions, securities and commodity brokers, large museums, large insurance, telecommunications and other communications, large airports, large marine port, large freight transportation, large transportation services, and large hotels.
  • Major centres included: Abbotsford, Barrie, Calgary, Charlottetown, Chicoutimi, Edmonton, Fredericton, Halifax, Hamilton, Kelowna, Kingston, Kitchener-Waterloo, Lethbridge, London, Moncton, Montréal, Oshawa, Ottawa–Gatineau, Québec City, Red Deer, Regina, Saint John, Saint John’s, Saskatoon, Sherbrooke, St Catharines–Niagara, Toronto, Trois-Rivières, Windsor, Winnipeg, Victoria and Vancouver.
  • Analysis based on buildings with postal codes that cover less than 40,000 square metres.

Source: CRTC Data Collection

5.4 Data and private line market sector

This pie chart shows the data and private line revenues as a percentage of total telecommunications revenues in 2009. Data and private line: 10%; Telecommunications revenues: $41.7 billion.

Overview

Approximately 150 entities offered data and private line services in 2010. Of these, incumbent TSPs accounted for approximately 40%, and alternative TSPs, such as cable BDUs, utility telcos, and resellers, accounted for the remaining 60%.







Data and private line sector at a glance

  %Growth
  2009 2010
Revenues ($ billions) 4.3 4.3 -0.0
Data 2.7 2.8 3.7
Private line 1.6 1.5 -6.1
Private line revenues as a percent of total 37.9% 35.6%  
New data protocols      
Revenues ($ billions) 1.7 1.8 8.2
Percent of total data protocol revenues 84.2% 89.5%  
Data and private line revenue market share      
Incumbent TSPs (excluding out-of-territory)1 65% 69%  
Forborne services      
Percent of data revenues from forborne data services 94% 91%  
Percent of private line revenues from forborne private line services 63% 65%  
Number of forborne private line routes 3,800 4,823 26.9

1. Due to changes in company reporting, incumbent TSPs (out-of-territory) 2010 results may not be compatible with previous years.

Source: CRTC data collection

Data and private line market sector– Statistical information

Table 5.4.1 Data and private line revenues ($ millions)

  CAGR
2006-2010
  2006 2007 2008 2009 2010
Data            
Data protocols 1,604 1,769 1,890 2,020 2,055 6.4%
Annual Growth 18.6% 10.3% 6.9% 6.8% 1.8%  
Other 700 704 723 658  723 0.8%
Annual Growth -20.9% 0.5% 2.8% -9.0% 9.8%  
Total data and other 2,304 2,472 2,614 2,678              2,778 4.8%
Annual Growth 3.0% 7.3% 5.7% 2.5% 3.7%  
Private Line            
Short-haul 649 717 737 674  584 -2.6%
Annual Growth -17.6% 10.4% 2.8% -8.5% -13.4%  
Long-haul 1,016 964 985 961  952 -1.6%
Annual Growth -4.7% -5.2% 2.3% -2.4% -1.0%  
Total private line 1,665 1,680 1,722 1,636  1,536 -2.0%
Annual Growth -10.2% 0.9% 2.5% -5.0% -6.1%  
Total data and private line 3,969 4,153 4,336 4,313  4,314 2.1%
Annual Growth -3.0% 4.6% 4.4% -0.5% 0.0%  
  • Data services are classified into one of three categories: (1) legacy data protocols such as X.25, ATM, and frame relay, (2) newer protocols such as Ethernet and IP-VPN, and other protocols including managed services where specific protocols cannot be separated (3) other services such as network management, and networking equipment.
  • Inclusion of ‘other protocols’ with newer protocols has resulted in a restatement of data protocols and ‘other’ in previous years.

Source: CRTC data collection

Figure 5.4.1 Data and private line revenue market share, by type of TSP

These two pie charts describe the percentage revenue market share of various industry participant groups for the data and private line market for 2009 and 2010. For 2009: Incumbent TSPs (excluding out-of-territory): 65%; Incumbent TSPs (out-of-territory): 17%; Non-incumbent alternative TSPs: 18%.  For 2010: Incumbent TSPs (excluding out-of-territory): 69%; Incumbent TSPs (out-of-territory): 14%; Non-incumbent alternative TSPs: 17%.

Source: CRTC data collection

Figure 5.4.2 Data revenue market share, by type of TSP

These two pie charts describe the percentage revenue market share of various industry participant groups for the data market for 2009 and 2010. For 2009: Incumbent TSPs (excluding out-of-territory): 59%; Incumbent TSPs (out-of-territory): 18%; Non-incumbent alternative TSPs: 23%.  For 2010: Incumbent TSPs (excluding out-of-territory): 62%; Incumbent TSPs (out-of-territory): 16%; Non-incumbent alternative TSPs: 22%.

Source: CRTC data collection

Table 5.4.2 Data protocol revenues, by service category ($ millions)

  CAGR
2006-2010
  2006 2007 2008 2009 2010
New protocols            
Retail            
Ethernet 469.9 488.5 520.7 482.3 451.4 -1.0%
Annual Growth   4.0% 6.6% -7.4% -6.4%  
IP-VPN 362.9 535.2 710.1 870.8 995.9 28.7%
Annual Growth   47.5% 32.7% 22.6% 14.4%  
Other 78.0 103.9 77.5 126.4 118.9 11.1%
Annual Growth   33.2% -25.4% 63.0% -5.9%  
Total retail 910.8 1,127.5 1,308.4 1,479.5 1,566.2 14.5%
Annual Growth   23.8% 16.0% 13.1% 5.9%  
Wholesale            
Ethernet 86.7 90.0 122.4 173.2 196.8 22.8%
Annual Growth   3.9% 36.0% 41.5% 13.7%  
IP-VPN 11.0 11.3 17.4 11.8 41.7 39.5%
Annual Growth   2.4% 54.6% -32.3% 253.5%  
Other 30.8 62.4 37.5 35.1 35.0 3.2%
Annual Growth   102.3% -39.8% -6.4% -0.3%  
Total wholesale 128.5 163.7 177.4 220.1 273.6 20.8%
Annual Growth   27.3% 8.4% 24.1% 24.3%  
Total new protocols 1,039.3 1,291.2 1,485.7 1,699.7 1,839.8 15.3%
Annual Growth   24.2% 15.1% 14.4% 8.2%  
Legacy protocols            
Retail 509.0 415.2 343.8 264.2 173.6 -23.6%
Annual Growth   -18.4% -17.2% -23.2% -34.3%  
Wholesale 55.8 62.4 60.7 55.7 41.5 -7.1%
Annual Growth   11.8% -2.6% -8.3% -25.4%  
Total legacy 564.8 477.5 404.6 319.9 215.2 -21.4%
Annual Growth   -15.5% -15.3% -20.9% -32.7%  
Total data protocols        1,604.1 1,768.7 1,890.3 2,019.5 2,055.0 6.4%
Annual Growth   10.3% 6.9% 6.8% 1.8%  

Source: CRTC data collection

Table 5.4.3 Data protocol revenue market share, by service category (%)

  2006 2007 2008 2009 20101
New data          
Incumbent TSPs (excluding out-of-territory) 56% 50% 50% 51% 59%
Incumbent TSPs (out-of-territory) 29% 33% 24% 25% 17%
Non-incumbent alternative TSPs 16% 17% 26% 23% 24%
Legacy data          
Incumbent TSPs (excluding out-of-territory) 59% 57% 60% 59% 62%
Incumbent TSPs (out-of-territory) 19% 16% 13% 12% 7%
Non-incumbent alternative TSPs 23% 26% 26% 29% 31%
Total data protocols          
Incumbent TSPs (excluding out-of-territory) 57% 52% 52% 52% 59%
Incumbent TSPs (out-of-territory) 25% 28% 22% 23% 16%
Non-incumbent alternative TSPs 18% 19% 26% 24% 25%
  • Other protocols were included in incumbent TSPs (excluding out-of-territory) and non-incumbent alternative TSP for previous years, resulting in a restatement of previous years

1. Due to changes in company reporting, Incumbent TSPs (out-of-territory) results are not consistent with previous years. In addition, ‘Other Protocols’ were not separately reported for incumbent TSPs (out-of-territory) before 2010. This has less than a 2% impact on the results in 2010.

Source: CRTC data collection

Figure 5.4.3 Private line revenue market share, by type of TSP

These two pie charts describe the percentage revenue market share of various industry participant groups for the private line market for 2009 and 2010. For 2009: Incumbent TSPs (excluding out-of-territory): 76%; Incumbent TSPs (out-of-territory): 15%; Non-incumbent alternative TSPs: 10%.  For 2010: Incumbent TSPs (excluding out-of-territory): 80%; Incumbent TSPs (out-of-territory): 10%; Non-incumbent alternative TSPs: 10%.

Source: CRTC data collection

Table 5.4.4 Private line revenues, by service category ($ millions)

  CAGR
2006-2010
  2006 2007 2008 2009 2010
Private line            
Retail            
Short-haul 431 430 357 322 307 -8.1%
Annual Growth -14.3% -0.3% -16.9% -9.9% -4.5%  
Long-haul 634 576 536 521 500 -5.8%
Annual Growth -3.9% -9.1% -6.9% -2.9% -4.0%  
Total retail private line 1,065 1,006 894 843  807 -6.7%
Annual Growth -8.4% -5.6% -11.2% -5.7% -4.2%  
Wholesale            
Short-haul 217 287 380 352 277 6.3%
Annual Growth -23.9% 32.2% 32.4% -7.2% -21.4%  
Long-haul 382 387 449 440 452 4.3%
Annual Growth -5.9% 1.4% 15.8% -1.9% 2.7%  
Total wholesale private line 599 674 828 793 729 5.0%
Annual Growth -13.3% 12.6% 22.9% -4.3% -8.0%  
Total private line 1,665 1,680 1,722 1,636 1,536 -2.0%
Annual Growth -10.2% 0.9% 2.5% -5.0% -6.1%  

Source: CRTC data collection

Table 5.4.5 Private line - Short-haul and long-haul revenue market share (%)

  2006 2007 2008 2009 20101
Short-haul          
Incumbent TSPs (excluding out-of-territory) 84 84 82 78 79
Incumbent TSPs (out-of-territory) 14 13 15 15 15
Non-incumbent alternative TSPs 2 3 4 6 6
Long-haul          
Incumbent TSPs (excluding out-of-territory) 78 65 68 74 81
Incumbent TSPs (out-of-territory) 11 20 18 14 8
Non-incumbent alternative TSPs 10 15 14 12 11
Total          
Incumbent TSPs (excluding out-of-territory) 80 73 74 76 80
Incumbent TSPs (out-of-territory) 13 17 16 14 10
Non-incumbent alternative TSPs 7 10 10 10 10

1. Due to changes in company reporting, incumbent TSPs (out-of-territory) 2010 results may not be compatible with previous years.

Source: CRTC data collection

Figure 5.4.4 Data and private line service revenue distribution, by customer size and type of provider (2010)

The following combination column chart shows the relative revenue market share for data and private line for small business  medium business  large business  and very large business  for Incumbent TSPs (excluding out-of-territory)  non-incumbent Alternative TSPs  and Incumbent TSPs (out-of-territory).  The non-incumbent Alternative TSPs and the Incumbent TSPs (out-of-territory) are stacked  and the combined number will be known as Alternative TSP total. For small business: For Incumbent TSPs (excluding out-of-territory): 87%; For non-incumbent Alternative TSPs: 5%; For Incumbent TSPs (out-of-territory): 9%.  Alternative TSP total is 13%. For medium business: For Incumbent TSPs (excluding out-of-territory): 77%; For non-incumbent Alternative TSPs: 14%; For Incumbent TSPs (out-of-territory): 9%.  Alternative TSP total is 23%. For large business: For Incumbent TSPs (excluding out-of-territory): 64%; For non-incumbent Alternative TSPs: 22%; For Incumbent TSPs (out-of-territory): 14%.  Alternative TSP total is 36%. For very large business: For Incumbent TSPs (excluding out-of-territory): 74%; For non-incumbent Alternative TSPs: 13%; For Incumbent TSPs (out-of-territory): 14%.  Alternative TSP total is 26%.

Source: CRTC data collection

This pie chart shows the wireline and wireless revenues as a percentage of total telecommunications revenues in 2010. Wireline: 57%; Wireless: 43%; Telecommunications revenues: $41.7 billion.

5.5 Wireless market sector

The wireless network covers approximately 20% of Canada’s geographic area and is available to 99% of Canadians. The advanced wireless network which supports handsets such as smartphones and turbo sticks, is available to 97% of Canadians. Wireless market sector revenues are the largest component (43%) of total telecommunications revenues.

The wireless market sector consists of three large facilities-based national WSPs, a number of smaller regional facilities-based WSPs, and a small number of MVNOs.

A number of new facilities-based WSPs have recently entered, or have announced that they plan to enter, the wireless market sector.

Wireless sector at a glance

  % 
growth
  2009 2010
Revenues ($ billions) 16.8 18.0 6.6
Number of subscribers (millions) 23.8 25.8 8.5
Average revenues (excluding paging)      
ARPU per month $58.81 $57.86 -1.6
ARPM $0.10 $0.10 0.0
Wireless capex/Total telecom capex 29% 22%  
Average capital expenditure per user $8 $6 -26.2
Availability (population)      
Wireless 99% 99%  
3G availability 96% 98%  
HSPA+ na 97%  
Penetration (household)      
Wireless 77% n.a.  
Wireless only 10% n.a.  

Sources: CRTC data collection and Statistics Canada

Wireless sector – Statistical information

Table 5.5.1 Wireless and paging revenues and number of subscribers

  CAGR
2006-2010
  2006 2007 2008 2009 2010
Revenue ($ millions)            
Wireless 12,600.1 14,430.0 15,940.3 16,804.0 17,931.2 9.2%
Annual growth 15.6% 14.5% 10.5% 5.4% 6.7%  
Paging 96.1 92.8 96.1 89.2 71.8 -7.0%
Annual growth -20.5% -3.4% 3.5% -7.2% -19.5%  
Total revenues 12,696.2 14,522.8 16,036.4 16,893.2 18,003.0 9.1%
Annual growth 15.2% 14.4% 10.4% 5.3% 6.6%  
Subscribers (thousands)                 
Wireless 18,749.1 20,277.4 22,092.5 23,811.9 25,825.4 8.3%
Annual growth 10.2% 8.2% 9.0% 7.8% 8.5%  
Paging 504.6 390.4 319.3 253.6 187.5 -21.9%
Annual growth -18.2% -22.6% -18.2% -20.6% -26.1%  

Source: CRTC data collection

Figure 5.5.1 Wireless revenues, subscribers, and revenues per subscriber (excluding paging)

This line clustered column chart on two axes shows the mobile wireless revenues in billions of dollars and total number of subscriber in millions for each year between 2006 and 2010 on the first axis. The second axis shows the average revenue dollars per subscriber (ARPU) between 2006 and 2010. Wireless revenues: 12.6, 14.4, 15.9, 16.8, 17.9; Subscribers: 18.7, 20.3, 22.1, 23.8, 25.8; Revenues/subscriber: 56, 59, 60, 59, 58.

Source: CRTC data collection

Figure 5.5.2 Wireless revenue and subscriber growth rates (excluding paging)

This line chart shows the mobile wireless revenue and subscriber percentage growth for each year between 2006 and 2010. Wireless revenue growth: 15.6%, 14.5%, 10.5%, 5.4%, 6.7%. Subscriber: 10.2%, 8.2%, 9.0%, 7.8%, 8.5%.

Source: CRTC data collection

Table 5.5.2 Wireless and paging revenues components ($ millions)

  CAGR
2006-2010
  2006 2007 2008 2009 2010
Basic voice 9,110.1 10,117.0 10,481.9 10,323.5 10,343.7 3.2%
Annual growth 11.5% 11.1% 3.6% -1.5% 0.2%  
Long distance 918.8 1,075.7 1,224.0 1,204.9 1,276.5 8.6%
Annual growth 19.2% 17.1% 13.8% -1.6% 5.9%  
Paging 96.1 92.8 96.1 89.2 71.9 -7.0%
Annual growth -20.5% -3.4% 3.5% -7.2% -19.5%  
Terminal 611.4 699.5 803.0 1,106.3 1,171.8 17.7%
Annual growth -8.1% 14.4% 14.8% 37.8% 5.9%  
Data and other            
Data n.a. n.a n.a n.a 3,885.7 na
Roaming            
Voice n.a n.a n.a n.a 776.1 na
Data n.a n.a n.a n.a 390.6 na
Total roaming n.a n.a n.a n.a 1,166.7 na
Other n.a n.a n.a n.a 86.9 na
Total data and other 1,959.7 2,537.7 3,431.4 4,169.2 5,139.3 27.3%
Annual growth 52.3% 29.5% 35.2% 21.5% 23.3%  
Total 12,696.2 14,522.8 16,036.4 16,893.2 18,003.0 9.1%
Annual growth 15.2% 14.4% 10.4% 5.3% 6.6%  
  • n/a: data not available

Source: CRTC data collection

Figure 5.5.3 Revenues by major component (excluding basic voice)

This clustered column chart illustrates the total wireless revenues by major component as a percent of total mobile wireless and paging revenues for each year between 2006 and 2010. The components include long distance, paging, data and other, and terminal, however the chart excludes the basic voice component. Long distance: 7%, 7%, 8%, 7%, 7%; Paging: 1%, 1%, 1%, 1%, 0%: Data and other: 15%, 17%, 21%, 25%, 29%; Terminal: 5%, 5%, 5%, 7%, 7%.

Source: CRTC data collection

Table 5.5.3 Prepaid and post paid wireless revenues (basic voice and long distance) ($ millions)

  CAGR
2006-2010
  2006 2007 2008 2009 2010
Prepaid 738.9 934.6 912.9 846.4 851.5 3.6%
Annual growth 11.7% 26.5% -2.3% -7.3% 0.6%  
Post-paid 9,235.2 10,211.0 10,745.7 10,610.6 10,768.7 3.9%
Annual growth 12.0% 10.6% 5.2% -1.3% 1.5%  
Total 9,974.1 11,145.9 11,658.6 11,456.9 11,620.2 3.9%
Annual growth 12.0% 11.7% 4.6% -1.7% 1.4%  

Source: CRTC data collection

Figure 5.5.4 Number of prepaid and post paid subscribers as a percentage of total wireless subscribers

This clustered column chart shows the percentage of pre-paid versus post-paid mobile wireless subscribers for each year between 2008 and 2010. Pre-paid: 22%, 21%, 21%; Post-paid: 78%, 79%, 79%.

Source: CRTC data collection

Figure 5.5.5 Capex and ACEPU

This line column chart on two axes shows the total wireless capital expenditures in millions of dollars and the average capital expenditures per subscriber in dollars for each year between 2006 and 2010. CAPEX: 1690, 1720, 6080, 2250, 1820; ACEPU: 5.4, 7.5, 7.1, 22.9, 7.9 and 5.9.

*2008 Capex includes an additional $4.6 billion due to the AWS auction.

Source: CRTC data collection

Figure 5.5.6 Retail and wholesale revenue split

This horizontal bar chart shows the total retail and wholesale wireless revenues in millions of dollars for 2010. Retail: 17530; Wholesale: 470

Source: CRTC data collection

Figure 5.5.7 Wireless TSPs’ subscriber market share

This side by side pie chart shows the mobile wireless subscriber market share of Rogers, Bell Group, Telus, New entrants and Others for 2009 and 2010. Rogers: 37%, 37%; Bell Group: 30%, 29%; Telus: 28%, 27%; New entrants: n.a., 2%; Others: 5%, 5%.
  1. “Other” includes MTS Allstream, SaskTel, and smaller WSPs.
  2. “Bell Group” includes: Bell Canada, Northwestel Mobility, Bell Mobility, Télébec, NorthernTel, Skyterra, Virgin, and Latitude Wireless.
  3. “New entrants” refers to the new wireless entities that acquired spectrum in Industry Canada’s 2008 AWS spectrum auction

Source: CRTC data collection

Figure 5.5.8 Wireless TSPs’ revenue market share

This side by side pie chart shows the mobile wireless revenue market share of Rogers, Bell Group, Telus, New entrants and Others for 2009 and 2010. Rogers: 39%, 39%; Bell Group: 28%, 28%; Telus: 28%, 27%; New entrants: n.a., 1%; Others: 5%, 5%.
  1. “Other” includes MTS Allstream, SaskTel, and smaller WSPs.
  2. “Bell Group” includes: Bell Canada, Northwestel Mobility, Bell Mobility, Télébec, NorthernTel, Skyterra, Virgin, and Latitude Wireless.
  3. “New entrants” refers to the new wireless entities that acquired spectrum in Industry Canada’s 2008 AWS spectrum auction

Source: CRTC data collection

Table 5.5.4 Wireless subscriber market share, by province (2010)

Province Bell Group2 Telus Rogers New
entrants3
Other1
British Columbia 17% 40% 42% 1% 0%
Alberta 22% 50% 27% 1% 0%
Saskatchewan 4% 5% 13% 0% 78%
Manitoba 3% 10% 29% 0% 57%
Ontario 30% 20% 47% 2% 1%
Quebec 37% 27% 33% 3% 0%
New Brunswick 61% 18% 20% 0% 0%
Prince Edward Island 62% 21% 17% 0% 0%
Nova Scotia 56% 24% 20% 0% 0%
Newfoundland and Labrador 76% 21% 3% 0% 0%
The North4 90% 0% 0% 0% 10%
  1. “Other” includes MTS Allstream, SaskTel, and smaller WSPs.
  2. “Bell Group” includes: Bell Canada, Northwestel Mobility, Bell Mobility, Télébec, NorthernTel, Skyterra, Virgin, and Latitude Wireless.
  3. “New entrants” refers to the new wireless entities that acquired spectrum in Industry Canada’s 2008 AWS spectrum auction
  4. The North includes Yukon, the Northwest Territories, and Nunavut.

Source: CRTC data collection

Table 5.5.5 ARPU, by province (excluding paging)

Province 2006 2007 2008 2009 2010
British Columbia $59.00 $59.10 $63.53 $60.88 $60.45
Alberta $70.07 $73.81 $75.26 $70.28 $69.58
Saskatchewan $52.74 $55.11 $57.66 $58.11 $62.93
Manitoba $54.01 $54.46 $57.05 $52.88 $54.51
Ontario $54.40 $59.63 $60.61 $62.75 $58.72
Quebec $47.52 $50.21 $50.45 $52.15 $49.98
New Brunswick $48.84 $52.87 $50.00 $51.08 $52.03
Prince Edward Island $61.10 $63.58 $64.89 $56.18 $48.43
Nova Scotia $50.42 $54.59 $52.57 $52.70 $54.72
Newfoundland and Labrador $45.37 $50.29 $47.43 $48.22 $50.45

Source: CRTC data collection

Table 5.5.6 Average monthly churn rates (percent)

  2006 2007 2008 2009 2010
Bell Mobility 1.6 1.7 1.6 1.6 1.9
Rogers 1.8 1.6 1.5 1.4 1.5
TCC 1.3 1.5 1.6 1.6 1.6

Sources: Companies’ annual reports and CRTC data collection

Figure 5.5.9 Population coverage and penetration

This line column chart on two axes shows the wireless coverage, number of wireless subscribers and HSPA+ coverage as a percentage of population by province and nationally. The second axis shows the ARPU by province in 2010. BC: 99%, 78%, 99%, $60; AB: 100%, 95%, 100%, $70; SK: 99%, 71%, 91%, $63; MB: 98%, 70%, 61%, $55; ON: 100%, 78%, 99%, $59; QC: 99%, 63%, 98%, $50; NB: 100%, 69%, 99%, $52; PEI: 100%, 71%, 0%, $48; NS: 100%, 74%, 98%, $55; NL: 96%, 74%, 96%, $50; CDN: 99%, 75%, 97%, $58.

Source: CRTC data collection

Figure 5.5.10 Mobile data only plan revenues, subscriptions and average monthly revenues per subscriber by data plan capacity

This side by side pie chart shows the percent of revenues and subscribers for mobile data only plan for three categories, less than 501 MB, between 501 MB and 2 GB and greater than 2 GB. Revenues: 54%, 24%, 22%; Subscribers: 72%, 17%, 11%.
Capacity: Less than
501 MB
Between
501 MB and 2 GB
Greater than
2 GB
Average revenues per subscriber per month ($) 23 44 64
  • Data only plans include built-in and portable access devices such as hubs, sticks, dongles, laptops, etc.

Source: CRTC data collection

Figure 5.5.11 Total number of MMS and SMS messages

This bar chart shows the total and daily number of SMS and MMS messages for 2009 and 2010. SMS and MMS: 51B, 76B; SMS and MMS daily: 140M; 207M.
  • The number of mms and sms messages includes both incoming and outgoing messages.

Source: CRTC data collection

Figure 5.5.12 Established carriers’ coverage v. new entrants’ coverage

This bar chart shows established carriers’ versus new entrants’ national coverage for 2009 and 2010. Established carriers: 99%, 99%; New entrants: n.a., 47%.

Source: CRTC data collection

Table 5.5.7 Mobile broadband

  Number of
subscribers
(millions)
Percentage
of all
subscribers
Standard mobile broadband 9.1 35%
Dedicated mobile 0.9 4%
Total mobile broadband 10.0 39%

Source: CRTC data collection

Table 5.5.8 Canadian wireless monthly service rates - incumbents v. new entrants (2010)

Baskets Vancouver Toronto Montreal Average
Level 1 Basket (low-volume use, 150 minutes per month)
Incumbents 32.29 34.26 34.53 33.69
New entrants 23.40 25.27 30.58 26.41
Percentage Differential -28% -26% -11% -22%
Level 2 Basket (average use, 450 minutes and 200 text per month)
Incumbents 51.18 49.51 51.09 50.59
New entrants 43.05 45.37 51.45 46.62
Percentage Differential -16% -8% 1% -8%
Level 3 Basket (high-volume use, 1,200 minutes, 200 text and 1GB data per month)
Incumbents 99.88 99.88 98.48 99.41
New entrants 51.35 51.35 98.90 67.20
Percentage Differential -49% -49% 0% -342%
  • Averages calculated on a market share and population weighted basis.

Source: Price comparison study conducted for the CRTC in April 2011 by Wall Communications Inc.; see Appendix 4 for a summary of the assumptions and methodologies used.

Table 5.5.9 Canadian wireless monthly Internet service rates - incumbents v. new entrants (2010)

Baskets Vancouver Toronto Montreal Average
Incumbents 52.32 52.32 52.97 52.54
New entrants 40.00 40.00 34.96 38.32
Percentage Differential -24% -24% -34% -27%
  • Averages calculated on a market share and population weighted basis

Source: Price comparison study conducted for the CRTC in April 2011 by Wall Communications Inc.; see Appendix 4 for a summary of the assumptions and methodologies used.

Map 5.5.1 Presence of wireless facilities-based service providers

This map displays the presence and the number of wireless facilities-based service providers in Canada.

Source: CRTC data collection

Map 5.5.2 Presence of HSPA+ wireless facilities-based service providers

This map displays the presence and the number of HSPA+ wireless facilities-based service providers in Canada.

Source: CRTC data collection