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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.
Approximately 98% of Canadian households are located within a 1.5 Mbps broadband footprint, consisting of either landline or mobile (i.e., HSPA+) facilities. On a provincial basis the footprint encompasses all households in the following 5 provinces: Alberta, Ontario, New Brunswick, Nova Scotia, and Prince Edward Island. For the remaining provinces it encompasses at least 89% of the households. With respect to Canada’s mobile network, 97% of Canadians are within the mobile broadband footprint.
Broadband penetration continues to increase. Seventy percent of households subscribe to 1.5 Mbps broadband Internet service in 2010 compared to 62% in 2009 and 52% subscribe to 5 Mbps service compared to 44% in 2009. With respect to mobile broadband, 39% of wireless devices are either handheld or dedicated devices that allow the user to access broadband services. Canada’s extensive broadband footprint provides Canadians with the means to actively participate in Canada’s digital economy and new media activities.
Communications service revenue growth
Canadian communications service revenues continued its year-over-year increase, going from $55.4 billion in 2009 to $57.4 billion in 2010, or by 3.6%. The growth was driven by the 8.9% increase in broadcasting revenues and the 1.8% increase in telecommunications revenues.
Broadcasting revenues went from $14.4 billion in 2009 to $15.7 billion in 2010. The increase was due to revenue growth in all of the broadcasting sectors: 8.9% in BDU revenues, which increased from $7.4 billion to $8.1 billion; 11.1% in Pay, PPV, VOD and specialty service revenues, which increased from $3.1 billion to $3.5 billion; 9.9% in conventional television, including the CBC, which increased from $2.4 billion to $2.6 billion; and 2.9% revenue growth in radio revenues which increased from $1.5 billion to $1.6 billion.
Telecommunications service revenues increased from $40.9 billion in 2009 to $41.7 billion in 2010, or by 1.8%. The increase was due to newer, or non-legacy data services, and broadband Internet and wireless service revenues which, collectively, increased from $25.0 billion in 2009 to $26.5 billion in 2010 or by 6.2%
Non-legacy data revenues increased from $1.7 billion to $1.8 billion, or by 8.2%. Internet service revenues increased from $6.5 billion to $6.8 billion, or by 4.2%. Wireless revenues increased from $16.9 billion to $18.0 billion, or by 6.6%. These increases were partially offset by the following decreases: -11% in long distance revenues, which went from $3.9 billion to $3.4 billion; -5.3% in legacy data and private line revenues, from $2.6 billion to $2.5 billion, and -2.7% in local and access revenues, from $9.4 billion to $9.1 billion.
The communications industry
In 2010, the five largest companies in the communication industry captured 83% of the industry’s revenues. The next five captured 9%. Collectively these companies have 92% of the revenues. Of the 11 markets1 in the industry, three companies offered services in all of these markets, representing 63% of the industry revenues. These companies are positioned to provide service bundles. In 2010, approximately 48% 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 91% of telecommunications revenues were from TSPs operating in all of the telecommunications market sectors and 68% of broadcasting revenues were from companies operating in all of the broadcasting sectors.
The alternative TSPs’ share of total wireline telecommunications revenues remained relatively unchanged at 37% in 2010. The alternative TSPs’ market share included the incumbent telephone companies’ operations outside of their traditional territories. The incumbent telephone companies’ operations outside of their traditional operating territories decreased from 8% in 2009 to 7% in 2010, other facilities-based TSPs such as cable companies and hydro utility companies with telecommunications activities increased from 23% in 2009 to 25% in 2010, and resellers remained relatively unchanged at 6%.
The cable companies were major providers of high speed Internet service, as they had approximately 57% of high speed residential Internet subscribers in 2010. In 2005, these companies started to provide local telephone service generally over a managed IP network, and by year-end 2010, had captured approximately 31% 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 15%. Competitor business lines increased 4%.
New wireless entrants collectively captured approximately 2% of the wireless subscribers and 1% of revenues in 2010. Overall, the new entrants stimulated the market as the number of wireless subscribers increased by 8.5% in 2010 compared to 7.8% in 2009. The average revenues per subscribers decreased 1.6%, from $58.81 to $57.86 in 2010 due in large part to the lower prices for service by new entrants.
There were 1208 radio and audio services in Canada in 2010. 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 remained relatively unchanged at 17.6 hours in 2010. On a per-listener basis, average weekly hours tuned also remained relatively unchanged at 19.4 hours per listener.
Overall viewing of Canadian programs on Canadian English-language services was 88% in 2010, 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 2010, 81% and 67% of English- and French-language drama and comedy programs were non-Canadian, respectively.
In 2010, approximately 11.5 million or 91% of Canadian households subscribed to a BDU for television service, an increase of 2.5% over the previous year. Of those subscribing to BDUs, 25% subscribed to either a DTH provider or a MDS BDU. The top four cable BDUs and the two DTH providers captured 89% of all BDU subscribers in 2010.
BDU programming revenues per subscriber per month2 increased by $3.55 or 6%, to $59.73 in 2010.
New media broadcasting
A growing number of Anglophone and Francophone Canadians are adopting new media broadcasting. The adoption rates of Anglphones for video on demand, Internet video, and video on a cell phone are 15%, 51% and 9%, respectively and 17%, 49% and 4% respectively for Francophones. More Canadians are watching television programming online. Of those viewing online TV, Anglophones spend 2.6 hours per week and Francophones spend 1.5 hours per week in such an activity.
Anglophones that stream online radio, tend to do more streaming than their francophone counterparts. The anglophones spend 6.1 hours per week streaming audio compared to 5.3 hours for Francophones.
The number of mobile phone subscribers increased 9% in 2010 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 5%. In 2010, approximately 70% of Canadian households had broadband Internet service and 74% had high-speed Internet service.
Newer data services that meet business customer requirements for increased speed, functionality, and cost-efficiency now represent 90% of data protocol revenues, with data services such as Ethernet and IP-based private networks having a combined revenue growth of 10% in 2010.
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 2010 and telecommunications data was for the twelve-month period ending 31 December 2010.
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 across all regions of Canada. The data, jointly collected, assists Industry Canada in its administration and monitoring of broadband deployment initiatives.