Communications Monitoring Report 2013: The Communications service industry

 

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3.0 The Communications service industry

This pie chart shows the broadcasting and telecommunications revenues as a percentage of total Industry revenues in 2012. Broadcasting: 28%; Telecommunications: 72%; Industry revenues: $60.7 billion.

3.1 Overview

This section provides an overview of the broadcasting and telecommunications service industries (the Canadian communications service industry).

It presents the financial performance of Canadian communications entities and a number of financial indicators, such as revenues over a five-year period. Some of the characteristics of the industry such as ownership and the extent to which industry participants offer communications services outside their traditional core services are examined. In 2005, revenues of incumbent TSPs and cable companies, as a percent of total communications revenues, were approximately 59% and 23%, respectively. At the end of 2012, their revenues represented 50% and 32% of total communications revenues. The financial performance of individual sectors within broadcasting and telecommunications is found in sections 4 and 5.

 

Communications service industry at a glance ($ billions)
  2011 2012 %
Growth
Communications revenues 59.4# 60.7 2.3%
Broadcasting 16.6 16.8 1.3%
Radio 1.6 1.6 0.4%
TV 6.4 6.5 1.9%
BDU 8.6 8.7 1.1%
Telecommunications 42.8# 43.9 2.7%
Communications revenues by type of provider
Incumbent TSPs 29.8# 30.3 1.7%
Cable companies 19.2 19.6 2.2%
Other 10.4 10.8 4.3%

Source: CRTC data collection

Statistical information – Financial overview

a) Industry revenues

Table 3.1.1 Communications revenues ($ billions)
  2008 2009 2010 2011 2012 CAGR
2008-2012
Telecommunications
Wireline 24.2 24.0 23.7 23.7# 23.5 -0.6%
Percentage growth 2.2 -0.5 -1.6 0.0 -0.5  
Wireless 16.0 16.9 18.0 19.1 20.4 6.2%
Percentage growth 10.4 5.3 6.6 6.2 6.5  
Subtotal 40.2 40.9 41.7 42.8 43.9 2.2%
Percentage growth 5.3 1.8 1.8 2.7 2.7  
Broadcasting
Radio AM/FM 1.6 1.5 1.6 1.6 1.6 0.4%
Percentage growth 6.1 -5.4 2.9 3.9 0.4  
Television 5.5 5.5 6.1 6.4 6.5 4.4%
Percentage growth 4.3 0.1 10.6 5.4 1.9  
BDU 6.9 7.4 8.1 8.6 8.7 5.9%
Percentage growth 9.7 7.6 9.3 5.8 1.1  
Subtotal 14.0 14.4 15.8 16.6 16.8 4.7%
 Percentage growth 7.1 3.2 9.1 5.4 1.4  
Total revenues 54.2 55.4 57.4 59.4 60.7 2.9%
Percentage growth 5.8 2.2 3.7 3.5 2.3  

Source: CRTC data collection

Figure 3.1.1 Broadcasting and telecommunications annual revenue growth rates

This line chart shows the broadcasting and telecommunications annual revenue growth rate for each year between 2008 and 2012. Telecommunications: 5.3%, 1.8%, 1.8%, 2.7% and 2.7%; Broadcasting 7.1%, 3.0%, 9.2%, 5.4% and 1.3%.

Source: CRTC data collection

Table 3.1.2 Industry revenues by type of provider ($ thousands)
  2009 2010 2011 2012 CAGR
2009-2012
Incumbent TSPs
Telecommunications 27.2 27.2 27.7# 28.0 0.9%
Percentage growth 0.1 0.0 1.9 1.0  
BDUs 1.7 1.9 2.1 2.4 12.3%
Percentage growth 10.1 14.2 12.6 10.3  
Subtotal 28.8 29.1 29.8 30.3 1.7%
Percentage growth 0.6 0.8 2.6 1.7  
Utility telcos and other TSPs 0.7 0.7 0.8 1.1 16.7%
Percentage growth 23.5 -1.4 19.1 35.2  
Resellers 1.6 1.5 1.5 1.5 -1.1%
Percentage growth -14.4 -3.8 -0.7 1.2  
Cable Companies
Telecommunications 11.4 12.2 12.7 13.3 5.1%
Percentage growth 7.8 7.1 4.1 4.2  
BDUs 5.8# 6.2# 6.5# 6.3 3.1%
Percentage growth 6.9 7.9 3.7 -1.9  
Subtotal 17.2 18.5 19.2 19.6 4.5%
Percentage growth 7.5 7.3 3.9 2.2  
Broadcasting - Other entities 7.0# 7.6# 8.0# 8.1 5.2%
Percentage growth -1.1 9.0 5.1 1.6  
Total 55.4 57.4 59.4 60.7 3.1%
Percentage growth 2.1 3.7 3.4 2.3  

Source: CRTC data collection

b) Industry characteristics

Table 3.1.3 Industry convergence: Cable v. Telecommunications
Year Percentage of incumbent BDUs’ revenues from telecom services1 Percentage of ILECs’ revenues from BDU services
2012 67.7 7.8
2011 66.3 7.2
2010 66.2 6.5
2009 66.4 5.8
2008 66.1 5.3
2007 64.7 4.7

1. Telecom services include local and access, long distance, Internet, data and private line, and wireless.

Source: CRTC data collection

Table 3.1.4 Percent of broadcasting and telecommunications revenues generated by companies operating in multiple sectors
Number of sectors in which companies offer service Number of reporting companies
operating in these sectors
Percent of broadcasting and
telecommunications revenues
generated in these sectors
  2010 2011 2012 2010 2011 2012
11 3 3 3 63 62 61
10 0 0 0 0 0 0
9 1 1 1 4 5 5
8 3 4 5 21 23 24
7 2 1 1 3 1 1
6 4 6 3 0 0 0
5 12 11 14 0 0 0
4 24 22 24 3 3 3
3 27 35 39 1 1 2
2 42 44 36 2 2 2
1 218 217 233 2 2 3

Source: CRTC data collection

Figure 3.1.2 Broadcasting and telecommunications revenues for the top 5 company groups, the next 5 company groups, and the remaining company groups

This bar chart shows broadcasting and telecommunications revenues for the top 5 group of companies, the next top 5 group and the remaining companies for 2010, 2011 and 2012. Top 5 companies: 83%, 83% and 83%; next 5 companies: 9%, 10% and 10%; remaining companies: 8%, 8% and 8%.

Source: CRTC data collection

Figure 3.1.3 Broadcasting and telecommunications revenues by type of provider, 2012

This pie chart shows the total broadcasting and telecommunications revenue market share by type of provider in 2012. Data is taken from table 3.1.2. There are five types of providers in this pie chart. Incumbent TSPs: 50%; Broadcasting and other entities: 13%; Cable companies: 32%; Resellers: 3% and Other facilities-based TSPs: 2%.

Source: CRTC data collection

Figure 3.1.4 Commercial broadcasting and telecommunications revenues (excluding non-programming and exempt services)

This clustered column chart shows the telecommunications, broadcasting, and combined broadcasting and telecommunications revenues in billions of dollars for each year between 2008 and 2012. Telecommunications: 40.2, 40.9, 41.7, 42.8 and 43.9; Broadcasting: 14.0, 14.4, 15.8, 16.6 and 16.8; Combined broadcasting and telecommunications: 54.2, 55.4, 57.4, 59.4 and 60.7.

Source: CRTC data collection

Figure 3.1.5 BDU revenues by service type

This combination of a clustered column and plotted dot chart shows BDU revenues in millions of dollars by type of service for each year between 2008 and 2012. Revenues from basic and non basic programming services: 6,922, 7,440, 8,132, 8,600 and 8,696; Revenues from exempted programming and non programming services: 3,455, 4,073, 4,502, 5,026 and 5,513; Total BDU revenues from all services: 10,404, 11,542, 12,661, 13,650 and 14,233.

Source: CRTC data collection

Figure 3.1.6 Canadian broadcasting and telecommunications revenue composition for a select number of large companies

This bubble chart measures the Canadian broadcasting and telecommunications revenue composition for eight large company groups for 2012. Revenue size of each company group, relative to each other, is reflected by the size of the bubble. The revenue composition is represented by the placement of the bubble.  Company groups with revenues that are telecom centric are placed closer to the y-axis, while company groups that are broadcasting centric are placed closer to the x-axis. Largest to smallest: Bell Group, Rogers Group, Telus Group, Shaw Group, Quebecor Group, MTS Allstream Group, Cogeco Group, SaskTel. y-axis (telecom centric) to x-axis (broadcasting centric): Telus Group, MTS Allstream Group, Sasktel Group, Bell Group, Rogers Group, Quebecor Group, Cogeco Group, Shaw Group.

Source: CRTC data collection

c) Financial performance

Figure 3.1.7 BDU – EBITDA margins achieved from all services (programming, exempted, and non-programming)

This line chart shows the EBITDA margins achieved by Cable, DTH and MDS, and Cable, DTH and MDS combined for each year between 2008 and 2012.  These margins reflect operating results from all services (programming, exempted programming and non programming services. Cable: 44.5%, 45.1%, 45.4%, 44.2% and 44.1%; DTH and MDS: 18.9%, 20.6%, 24.1%, 23.5% and 30.2%; Cable, DTH and MDS combined: 39.4%, 40.4%, 41.3%, 40.3% and 41.7%.

Source: CRTC data collection

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