New Report Available: Canada Telecommunications Report Q1 2013
New Fixed Networks research report from Business Monitor International is now available from Fast Market Research
| Published on 19 February 2013 |
by Bill Thompson
(WireNews+Co)
Boston, MA
BMI View: While Canada's mobile market continues to show slow but steady growth, operators began reporting an increase in ARPU in mid-2012. While too soon to suggest a turnaround in the market's trends, an increase is good news for operators across the board as costly investments in next-generation networks are ongoing. Canada's good economic outlook is also positive for operators in the market, suggesting ARPUs could continue to grow or at least stabilise. The news also bodes well for content providers and fixed broadband operators trying to encourage greater growth in services.
Key Data
- Our broadband forecasts were revised downwards to only include dedicated mobile broadband subscriptions. We believe mobile broadband will remain a minor technology in the market but overall market growth will push penetration to 40% by 2017.
- Launches of LTE and higher speed 3G will help push 3G and 4G to account for around two-thirds of all mobile subscriptions by the end of our forecast period.
- Fixed-line voice services continue to diminish in terms of operator revenues and will continue to negatively impact operator bottom lines in the medium term.
View Full Report Details and Table of Contents (http://www.fastmr.com/prod/536409_canada_telecommunications_report_q1_2013.aspx?afid=201)
Key Trends & Developments
Several operators upgraded their networks to LTE or 3G+ services, offering subscribers higher speed mobile data services. BMI believes this will drive ARPUs, which increased in Q212 and Q312. Eastlink, Riogers, Mobilicity, SaskTel and MTS made announcements about network upgrades in Q412.
UK-based MVNO Lycamobile is planning to launch its low-cost international mobile services in Canada, reports the Globe and Mail. The operator, which is in discussions with several Canadian wireless firms, will target immigrants and other ethnic consumers who regularly talk and text with family and friends living overseas. The operator is aiming to roll out its services in late 2012. Initially, it will offer unlimited and payas- you-go plans and target major urban centres, such as Vancouver, Toronto and Montreal.
Market share weighted mobile ARPU increased for the second quarter in a row in Q312. Although it remains below CAD60, BMI believes there are good signs that ARPUs may continue a slow path upwards. 3G and 4G growth is set to be strong and the economic outlook for Canada is good in comparison to peer markets. While we do not discount further declines, there is little overall subscriber growth left in the market, leaving operators only able to improve their performances based on existing subscriber spending.
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- Fast Market Research, Inc.
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Posted 2013-02-19 18:13:00














