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Who's Who in the Zoo: Canadian Telecommunications 2007 Competitive Analysis

Product Type: Market Research Report
Published by: IDC
Published: February 2008
Product Code: R104-33016
Description

This IDC study is the sixth edition of IDC Canada's popular annual guide to the Canadian telecommunications services sector.

New competitors continued to emerge and promise yet more upheaval in the C$36.6 billion-a-year Canadian communications landscape.

"Established telecom services providers are coming under siege," says Lawrence Surtees, vice president of Communications Research and principal analyst at IDC Canada Ltd. "As the lines between telecom and cable operators blurred in 2006, incumbent telecoms also face a prospective onslaught from the Googazon complex of global online search giants and stronger, consolidated hydro telecoms."

Table of Contents
Table of Contents

IDC Opinion

In This Study

Methodology

Executive Summary

Competitive Landscape: New Players Emerge

Incumbents

Market Segments

Wireline

Local Market

Long Distance Market

Data Market

Wireless Market

High-Speed Internet Market

Situation Overview

Introduction

"Googazon" Goes Mobile

Figure: Search Engine Preference in Canada, Estimated Number of Users, 2006

Figure: Google Ascendant: Top 5 Global Internet Firms, Total Market Capitalization, 1999?2007 ($US)

Figure: Competition in Canadian Telecommunications Markets, 2006

Market Size and Share

Canadian Teledensity Indicators

Figure: Canada's Population Density, 2001

Figure: Canada's Teledensity Penetration per 100 People, 1997?2006

Table: Global and Canadian Telecom and IT Indicators, 2006

Canadian Telecom Services Market in 2006

Table: Canadian Telecommunications Services Market Spending by Segment (Including Wholesale Revenue), 2002-2006 (C$M)

Figure: Canadian Telecommunications Services Market by Segment (Including Wholesale), 2001?2006 (C$M)

Figure: Canadian Telecommunications Services Market, Segment Contribution to Revenue (Wholesale Included), 2006

Figure: Canadian Retail Telecommunications Service Market by Service Segment (Excluding Wholesale), 2006

Figure: Canadian Telecom Market, Wireless Versus Wireline (Including Wholesale), 2000?2006 (C$M and % Revenue)

Canadian Telecom Capex Growth in 2006

Figure: Canadian Telecom Service Providers Capital Expenditures (Including Cable Companies), 2000?2006

Figure: Canadian Telecom Capex Spending Annual Change, 2001?2006

Figure: Canadian Telecom Revenue Versus Capital Spending, 1998?2006

Market Share by Provider Type

Figure: Canadian Telecom Service Provider Taxonomy and Players by Market Segment, 2006

Figure: Canadian Telecommunications Revenue Market Share by Provider Type, 2006

Figure: Canadian Telecom Provider Market Share by Revenue, 2006

Table: Top 20 Global Telecom Service Providers, 2006 (US$M)

Future Outlook

Incumbent Local Exchange Carriers

Market Size and Share: Incumbents Still Dominant Players

Figure: Canada's Leading Incumbent Telephone Companies Territory and Revenue, 2006

Figure: Canadian ILEC Wireline Capex Spending, 2000?2006 (C$M)

Figure: Canadian ILEC Capital Intensity Ratios (Capex as % of Revenue), Year-End 2006

Comparison of Bell and Telus Revenue Mix

Figure: Comparison of Bell's and Telus' Product Line Revenue, 2006

Local Market

Table: Canadian Local Services Market, Revenue and Access Lines, 2002-2006

Figure: Canadian Local Market Share by Revenue, 2006

Figure: Canadian Local NAS Lines by Carrier, 2006

Figure: Canadian Phone Lines, Circuit TDM Versus VoIP Line Equivalents, 2005 and 2006

Local Deregulation Enables ILECs to Go on the Offensive

Incumbent Local Exchange Carrier Vendor Profiles

BCE

BCE's Corporate Organization and Structure

Figure: BCE Revenue Sources, 2006

Honey, I Shrunk the Phone Company!

Figure: BCE Asset Disposition Proceeds, 2005?2006

Rogers Nears BCE in Value

BCE's Continuing Stable

Bell Canada

Figure: Bell Canada Unconsolidated Revenue by Service, with and Without ExpressVu, 2006

Table: Bell Canada at a Glance, 2006

Figure: Bell Canada Organizational Leadership, 2006

Bell Canada's Strategy

Bell Canada's Network

Figure: Bell Canada OC-192 Fibre Optic Network Rings and Points of Presence

Figure: Bell Canada North American Fibre Routes with Colocation Points, 2006?2007

Figure: Bell Canada Optical Network Speeds

Network Investment Priorities

Products and Services

IT Services

Figure: Bell Canada ICT Units

Managed Security Services

Bell Aliant Regional Communications

Figure: Bell Regional Income Trust Network Coverage Phase 1, 2006

Figure: Bell Aliant Regional Communications Service Territories, 2006

Figure: Bell Aliant Regional Communications Structure

Table: Bell Aliant Regional Communications Income Trust at a Glance, 2006

Figure: Bell Aliant Regional Communications Organization and Executives, 2006

Aliant Telecom

Figure: Bell Aliant Detailed Corporate Structure, 2006

Figure: Bell Aliant Regional Communications Revenue by Service Segment, 2006

Figure: Competitive Footprint in Bell Aliant Regional Territory, 2006 (% of Homes Passed)

Aliant's Strategies and Priorities

Bell Nordiq

Figure: Bell Nordiq Ownership Structure

Table: Bell Nordiq Group at a Glance, 2006

Bell Nordiq's Networks

Figure: Bell Nordiq Territory and Networks, 2006

Amtelecom Group

Figure: Amtelecom Ownership Structure

Table: Amtelecom Group at a Glance, 2006

Figure: Amtelecom Group's Serving Territories, 2006

Telus

Figure: Telus Executive Team, 2006

Table: Telus Communications at a Glance, 2006

Figure: Telus Revenue by Product Line, 2006

Figure: Telus Business Solutions

Figure: Telus Business Solutions Vertical Market Organization, 2006

Figure: Addressable Opportunity of Telus Targeted Vertical Markets, 2006?2011 (C$M)

Telus' Strategies and Priorities

Figure: Telus Quarterly Network Access Line Loss, 2006 (000s)

Capex Budget Increase

Telus Income Trust

Telus Networks

Figure: Telus Wireline and Wireless Network Coverage, 2006

Figure: Telus Toronto and Montreal Office Towers

IT Services

Telus TV Launch

Manitoba Telecom

Table: MTS-Allstream at a Glance, 2006

Figure: MTS-Allstream Revenue by Segment, 2006

MTS' Strategies and Priorities

Allstream Acquisition

Figure: MTS-Allstream Networks, 2006

Saskatchewan Telecommunications

Table: SaskTel at a Glance, 2006

Figure: SaskTel Telecommunications Revenue by Segment, 2006

SaskTel Capex Priorities

Northwestel

Figure: Northwestel's Operating Territory, 2006

Table: Northwestel at a Glance, 2006

Independent ILECs

Competitive Local Exchange Carrier Vendor Profiles

Market Size and Market Share

Figure: Incumbents' Local Line Share by Province, 2005 and 2006

Figure: Comparison of Canadian ILEC and CLEC Local Line Share by Customer Segment, 2006 (% Lines)

Figure: Canadian CLEC Local Retail Lines by Type, 2000?2006

Allstream

Figure: Allstream's Corporate Roots, 1847?Present

Table: Allstream at a Glance, 2006

Network

Figure: Allstream National Network and Points of Presence, 2006

Figure: Allstream Internet Datacentres, 2006

Extended Network Alliances

Service Offerings

Figure: Allstream's Enterprise Triple Play

IT and Hosted Infrastructure Services

Delphi Acquisition

Figure: Allstream Vertical Markets and Select National Accounts, 2006

Strategic Direction

IP Trunking Service

Figure: Allstream Strategic Focus, 2006

Challenges

Figure: Allstream Revenue and Capex, 2000?2006

Figure: Canadian Telecom Market Share of MTS-Allstream Compared with Competitors, 2006 (% Revenue)

Rogers Telecom

Figure: Rogers Communications Revenue by Segment, 2006

Table: Rogers Communications at a Glance, 2006

Figure: Revenue Comparison of Canada's Largest ILECs with Rogers, 2006

Figure: Rogers Communications Corporate Organization, 2006

Table: Rogers Telecom at a Glance, 2006

Figure: Rogers Telecom Estimated Revenue by Product, 2006

Figure: Canadian Business Telecom Market Share Estimate, 2006

Rogers Telecom's Networks

Figure: RBS Fibre-Optic Network, 2006

Figure: GT/360 Eastern Canadian Network Assets Acquired by Rogers Telecom, 2005?2006

RBS-Sprint Pact

Figure: Number of Countries Reached by Sprint's Global Network by Region and WAN Technology

Futureway Acquisition

Figure: Futureway Communications Serving Area, 2006

Bell West and Alberta SuperNet

Figure: Alberta SuperNet Network, 2006

Figure: Group Telecom Network Assets Acquired by Bell Canada

Table: Alberta SuperNet Public Sector Access Bandwidth Prices, 2006

Navigata

Navigata's Network

Figure: Navigata's National and BC Networks, 2006

Cable and IP Telephony

Table: Canadian Non-ILEC VoIP Connections, Revenue, and Average Monthly Churn, 2004-2006

Figure: Digital Cable Television Systems in Canada

Cable Telephony Penetration and Bundle Lift

Figure: North America Cumulative Cable Telephony Penetration by Operator, 2006

Table: Canadian Cable Company Capex Budgets, 2000-2006 (C$M)

Figure: Canadian Telecom Capex by Segment (Including Cable), 2000?2006

Rogers Cable

Figure: Rogers Cable Coverage Areas in Eastern Canada, 2006

Table: Rogers Cable Capex Program Additions, 2005-2006 (C$M)

Figure: Top 5 Canadian Telecom Capex Spenders (Including Cable Companies), 2000?2006

Shaw Communications

Table: Shaw Communications at a Glance, 2006

Figure: Shaw Cable Segment Revenue by Product, 2006

Figure: Shaw's Cable Territory

Shaw Business Solutions Network

Figure: Shaw Business Solutions Core IP Network

Vidéotron Télécom

Figure: Vidéotron Ownership Structure

Vidéotron's Networks

Figure: Vidéotron Télécom Backbone Network

Cogeco

Cogeco's Fibre-Optic Networks

Figure: Cogeco Ontario and Quebec Intercity Fibre-Optic Network, 2006

EastLink Cable

Figure: EastLink Fibre-Optic Network, 2006

Persona

Newfoundland Broadband Network

Figure: Newfoundland's Broadband Initiative

Vonage Canada

Figure: Vonage Canadian Network Reach, 2006

AOL Canada

Skype

Figure: Skype Outbound Long Distance Prices, 2006 (U.S. Cents per Minute)

Long Distance Interexchange Carriers and Resellers

Market Size and Market Share

Figure: Canadian Retail Long Distance Revenue and Traffic Share by Provider Type, 2006

Figure: Canadian Incumbents' Long Distance Revenue Share in ILEC Territories, 2006

Figure: Canadian Long Distance Market Share in Minutes by Customer Type, 2006

Figure: Canadian Long Distance Revenue Market Share by Provider, 2006

Table: Canadian Long Distance Plans, 2006-2007

Primus

Table: Primus Telecommunications Canada at a Glance, 2006

Figure: Primus Canada Estimated Revenue Breakdown, 2006

Primus Canada Network

Figure: Primus Canada Network, 2006

ADSL2+

Primus TalkBroadband

Yak Communications

Figure: Yak's Canadian Dial-Around Network Presence, 2006

Figure: Yak Dial-Around Long-Distance Call Path Within Canada

Yak High-Speed VoIP Service

Telehop

Long Distance Wholesale

Figure: Canadian Long Distance Wholesale Revenue, 2000?2006

Verizon-MCI Canada

MCI Canada's Networks

Figure: MCI-Verizon Global Network Presence, 2006

Figure: MCI-Verizon North American Global Network Connections, 2006

Teleglobe

Teleglobe's Networks

Table: Teleglobe's Ownership Stake in International Undersea and Terrestrial Cable Systems by Region, 2005

Figure: VSNL Teleglobe Global Network, 2006?2007

Data Communications

Figure: Canadian Telecommunications Competition Milestones, 1964?1996

Figure: Canadian Data Communication Revenue by Provider Type, 2006

AT&T Global Services

AT&T GS Network

Figure: AT&T Global Networks and Service Nodes, 2006

Figure: AT&T Global IP Backbone Network, 2006

Figure: AT&T Global Internet Datacentres

Figure: AT&T Global Networks Canadian Nodes, 2006

BT PLC

Networks

Table: BT's Data Communications Products and Global Availability, 2006

Geographic Coverage

Figure: BT Global Networks, 2006

Figure: BT North American Networks, 2006

BT's Global 21CN Next-Generation Network

MPLS-Based IP VPN

Table: BT MPLS-Based IP VPN Availability by Geography

IPSec-Based IP VPN

Table: BT IPSec-Based IP VPN Global Availability by Region

Fixed Mobile Convergence Offering

Deutsche Telekom (T-Systems)

Figure: Deutsche Telekom T-Systems Global Network

Orange (Formerly Equant)

Figure: Orange Global Networks

Utility Telecoms

Ontario Hydro Looks at Wireless Broadband

Hydro Telecoms Consolidation Looms

Hydro One

Figure: Hydro One Telecom Network

Atria Networks Emerges as Consolidator

Figure: Atria Networks Serving Territory, 2006?2007

Table: Atria Networks High-Speed Services

Table: FibreWired "EasyVPN" Service Fees (C$)

Table: Utilities Kingston Fibre-Optic Rates, One-Year Contract (C$)

Atria Picks Up SCBN Telecom and Simcoe Community Access Network

Figure: SCBN Simcoe County Fibre Network

Atria Buys PowerStream Network

Figure: PowerStream Service Area

Toronto Hydro

Figure: Toronto Hydro Telecom Fibre-Optic Backbone Network

Table: Toronto Hydro Telecom Services

Data Storage Transport Services

Telecom Ottawa

Figure: Telecom Ottawa Fibre-Optic Network, 2006

Blink Communications

Blinks Acquires Enersource Telecom

MaXess Networx

Figure: MaXess Networx Fibre-Optic Network in Southwestern Ontario

Sudbury SureNet

Figure: Greater Sudbury Hydro's Fibre-Optic Telecommunications Network

Ontera and North Bay Hydro

Figure: Ontera Northern Ontario Service Area, 2006

Enmax Envision

Figure: Enmax Envision Calgary Fibre-Optic Network, 2006

Hydro-Québec

Gaz Metropolitan and MTO Telecom

Figure: Gaz Metropolitan Montreal Fibre-Optic Network, 2006

Q9 Networks

Wireless

Figure: Canadian Wireless Canadian Wireless Subscriber Growth, 1995?2006

Figure: Mobile Penetration Rates, Canada and Select Countries, 2006

Figure: Canadian Wireless Subscribers Versus NAS Wireline Customers, 2003?2006

Figure: Canadian Coverage for All Wireless Providers Combined, 2006

Market Share

Figure: Canadian Wireless Market Share, 2006 (% Subscribers)

Wireless Data Stimulates ARPU

Table: Canadian Wireless Data Plans and Prices, 2006

Figure: Canadian Wireless ARPU, 1995?2006

Pricing and Discount Services

Rogers Wireless

Table: Rogers Wireless at a Glance, 2006

Rogers Wireless' Networks

Figure: Rogers and Fido Wireless Network Coverage, 2006

Table: Rogers Wireless Capex Program Additions, 2005-2006 (C$M)

Bell Mobility

Table: Bell Mobility at a Glance, 2006

Bell Mobility's Networks

Figure: Bell Mobility Network

EV-DO Upgrade

Figure: Bell Mobility 1x Coverage in Southern Ontario

Virgin Mobile Canada

Telus Mobility

Table: Telus Mobility at a Glance, 2006

Telus Mobility's Networks

Figure: Telus Mobility Network Coverage, 2006

SaskTel Mobility

Figure: SaskTel Mobility Network Coverage, 2006

MTS Mobility

Figure: MTS Mobility Network

TbayTel Mobility

Figure: TbayTel Mobility Coverage, 2006

Vidéotron

Muni Mesh and WiFi

Figure: Proliferation of U.S. Muni WiFi Mesh Networks, July 2005?December 2006

Table: Characteristics of Select Canadian Muni Mesh Networks, 2006

Toronto Hydro Telecom Mesh WiFi

Figure: Toronto Hydro Telecom Toronto Mesh WiFi Zone Phase 1, 2006

Atria Kitchener-Waterloo WiFi Mesh

Figure: Atria Networks Mesh Systems in Southwest Ontario, 2006

Fred E-zone

Figure: Fredericton Fred E-zone WiFi Coverage

Saskatchewan WiFi

FatPort

Internet Service Providers

Market Size and Market Share

Table: Canadian Internet Access Retail Market Revenue, 2004?2006

Table: Canadian High-Speed Internet Market Share, 2006

Figure: Canadian High-Speed Internet Market Share by Access Type, 2006 (% Subscribers)

Figure: Canadian High-Speed Internet Price Comparison, 2006 (C$ per Month)

Table: Comparison of Canadian High-Speed Internet Service Prices, Bandwidth, and Promotions, September 2006

Bandwidth Increases

Net Neutrality Debate

Telco IPTV

Table: Canadian Telecom IPTV Services, 2006

Other ISPs

AOL Canada

Alternative Broadband Access

Fixed Wireless Broadband

Figure: Canadian Fixed Wireless Frequency Allocations

Figure: Canadian Communities With and Without Broadband Access, 2006

TeraGo Networks

Figure: TeraGo Networks Wireless Broadband

Craig Wireless

Clearwire

Inukshuk and Rogers-Bell Coopetition

Primus

Satellite Broadband

Barrett Xplore

LinCsat

C-Com

Novanet

Internet Transport

Figure: Canadian Fibre-Optic Backbone Routes

Research Network Operators

CANARIE

Figure: CANARIE CA*net 4 Network, 2006

ORANO

Figure: ORANO's ORION Internet Backbone

Quebec's RISQ Network and Montreal Municipal Fibre Condominium

Figure: Quebec's RISQ Fibre-Optic Network

Communication Satellite Operators

Telesat Canada

Figure: Telesat Canada Geosynchronous Satellites Planned and in Orbit by Location, 2005?2008

Table: Telesat Canada Satellite Characteristics and Capacity, 2006

Figure: Telesat Canada Revenue by Segment, 2006

Direct-to-Home Providers

Figure: Canadian DTH Satellite Customers by Provider, 1999?2006

Bell ExpressVu

Star Choice

Essential Guidance

Figure: Preliminary IDC Leadership Grid of Top 4 Canadian National Telecom Providers, 2006

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