Institutional links

• Quick Links

  • Today's Releases
  • Decisions, Notices and Orders
  • Public Proceedings

• Resources

  • Glossary

Privacy and Security
Transparency

Appendix 3

Classification of Canadian telecommunications service providers

Telecommunications service providers (TSPs) operating in Canada are classified into two broad categories, incumbent TSPs and alternative TSPs, as outlined below. The category into which a given TSP falls may change from one year to the next as a result of consolidation in the industry.

1) Incumbent TSPs are the telephone companies that provided telecommunications services on a monopoly basis prior to the introduction of competition. For this report, the operating results of these companies from their activities outside their traditional operating territory are included with the alternative TSPs group discussed below.

a) Large incumbent TSPs are those incumbent telephone companies serving relatively large geographical areas, usually including both rural and urban populations, and providing local, long distance, wireless, Internet, data, private line, and other services. The large incumbents include Bell Aliant Regional Communications, Limited Partership, Bell Canada, MTS Allstream Inc., Saskatchewan Telecommunications, and TELUS Communications Company (TCC), as well as Northwestel Inc., Télébec, Limited Parternship, and TELUS Communications (Québec) Inc. (now part of TCC).

b) Small incumbent TSPs are those incumbent telephone companies serving relatively small geographical areas (mostly municipal areas generally located in less densely populated areas) in Ontario, Quebec and, in one instance, British Columbia. Due to the limited size of their serving areas, they typically do not provide facilities based long distance services. However, they do provide a range of local voice, data, Internet, and wireless services. The small incumbents include companies such as NorthernTel, Limited Partnership and TBayTel.

2) Alternative TSPs are telecommunications service providers that are not incumbent telephone companies as described in 1) above. However, this group includes incumbent TSP out of territory operations, such as Bell Canada's operations in Alberta and British Columbia. Alternative TSPs are subdivided as follows:

a) Facilities based alternative TSPs are the alternative TSPs that own and operate a telecommunications network. This includes companies such as cable broadcasting distribution undertakings (BDUs) and utility companies. This group is further subdivided into:

i. Incumbent TSPs (out of territory), and

ii. Facilities based, non incumbent TSPs

• Cable BDUs include the former cable monopolies that also provide telecommunications services (e.g. Internet, wireless, and voice services). These cable BDUs include such companies as Rogers Communications Inc., Shaw Communications Inc., Le Groupe Vidéotron ltée, Cogeco Inc., and Bragg Communications Incorporated.
• Utility telcos and other carriers category encompasses two smaller groups of TSPs: Utility telcos whose market entry into telecommunications services, or whose corporate group's market entry into telecommunications services, was preceded by a group member company's activity in the electricity, gas or other utility business; and other carriers that own physical transmission facilities (e.g. inter city, intra city, or local). These service providers include such companies as Hydro One Telecom Inc., Toronto Hydro Telecom Inc., FibreWired Network, and FCI Broadband (a division of Futureway Communications Inc.).

b) Non-facilities based TSPs are providers of telecommunications services that do not own and operate a telecommunications network. These companies are generally referred to as resellers since they generally acquire telecommunications services from another TSP to either resell the service or they create their own network from which to provide service to their customers. Examples include Primus Telecommunications Canada Inc., Distributel Communications Limited, YAK Communications (Canada) Inc., and many others, including independent Internet service providers (ISPs).

In the classification structure above, wireless companies are classified based on the affiliate relationship with one of the service providers.