Canada Telecommunications Report Q3 2011
Business Monitor International Ltd Page 8
Canada Mobile SWOT
Five locally owned mobile operators have invested heavily in the market.
Low penetration rate means ample scope for continued growth.
New operator launches to bring some dynamism to the market.
Market is predominantly postpaid leading to slower growth but high revenues.
All mobile operators have launched 3G services.
Market only tends to see slow steady growth.
Size of Canada and spread of population makes truly nationwide coverage a difficult taskfor operators.
Take-up of 3G has been slower than expected
New operators, which launched in 2010, could provide the boost to the market that willdrive growth.
Subscribers are increasingly using VAS, providing opportunities for operators to expandtheir services and generate higher revenues from new sources.
Network and infrastructure sharing agreements could see coverage expanded to newregions of Canada, enabling more subscribers to acquire mobile services.
The auction of 700MHz and 2.5GHz of spectrum will give scope for smaller operators tostep up their role in the mobile market.
Financial crisis has already made its impact on the buyout of BCE, as well as playing apart in the Nortel bankruptcy filing, showing how squeezed credit markets have putpressure on the telecoms industry.
Some of the new mobile operators are focusing on low-cost prepaid services in order togain traction; this may lead to a price war, with ARPUs likely to be the obvious casualties.
Canada Wireline Market SWOT
Competition in the fixed-line market is fierce, with presence of traditional operators andcable operators.
Broadband growth remains robust and is fastest-growing area of the market.
Cable operators capturing many of the lost subscriptions reported by fixed-line operators.
High interest in triple-play services has expanded competition in this arena.
Fixed-line market continues to decline with young subscribers more likely to choosewireless options over wireline.
Large number of operators means market is somewhat fragmented.
Limits of mobile coverage in many areas means that fixed-line services remain important.
Faster services will encourage greater spending from subscribers, although this will notdrive up net additions.
Bundled services have successfully encouraged retention of fixed-line services.
The financial crisis has already made an impact on the buyout of BCE, as well as playing apart in the Nortel bankruptcy filing, showing how squeezed credit markets have putpressure on the telecoms industry.