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Communications Monitoring Report 2013: Telecommunications service industry

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5.0 Telecommunications service industry

5.1 Financial review

In 2012, the Canadian telecommunications service industry was dominated by 10 large companies that collectively, with their affiliates, accounted for 93% of Canadian telecommunications revenues of $43.9 billion. The remaining entities were smaller, with annual combined revenues of less than $2.9 billion, placing each company well below 10% of total Canadian telecommunications revenues as set out in subsection 16(6) of the Telecommunications Act, as amended.

Section 16 of the Telecommunications Act addresses the eligibility of Canadian carriers to operate as telecommunications common carriers. For the purposes of applying the provisions of this section, the Commission has determined that, for the period between the date of release of the 2013 Communications Monitoring Report and the date of release of the 2014 Communications Monitoring Report, the total annual revenues from the provision of telecommunications services in Canada is $43.9 billion.

In 2012, companies operating in all six markets of the telecommunications service industry (i.e. local and access, long distance, Internet, data, private line, and wireless) accounted for approximately 87% of Canadian telecommunications revenues. Companies operating in only one market sector accounted for 1% of revenues.

This section provides a broad overview of the financial performance of the telecommunications service industry and examines various financial indicators such as revenue trends by market sector and by type of service provider, profitability, market share, capital intensity, and average revenues per line.

Telecommunications service industry at a glance

		2011	2012	% Growth
Telecommunications revenues1 ($ billions)		42.8#	43.9	2.7
Percentage of telecommunications revenues	Top 5 ILECs	65	65	5.2
	Top 5 cable companies	30	30	4.2
	Top 5 resellers	2	2	-0.6
Capex ($ billions)	Wireline	7.2#	7.1	-1.3
	Wireless3	2.3	2.5	9.2
EBITDA margin (%)	Wireline	21	22	6.8
	Wireless	43	40	-6.3
Average wireless retail revenues2 ($/subscriber/month)		57.00#	58.60	2.8%

1. Excludes landline terminal revenues.
2. Average retail revenues per subscriber per month are obtained by dividing total retail revenues by the total number of retail subscribers, then dividing this number by 12.
3. Globalive, Public Mobile and Data & Audio expenditures were excluded.

Source: CRTC data collection

Statistical information – Telecommunications

a) Industry revenues

Table 5.1.1 Retail and wholesale telecommunications revenues¹ ($ billions)

		2008	2009	2010	2011	2012	CAGR 2008-2012
Wireline	Retail2	21.1	21.0	20.6	20.6#	20.6	-0.5%
	Percentage growth	1.2	-0.4	-1.8	0.2	0.0
	Wholesale	3.1	3.1	3.1	3.0#	2.9	-1.7%
	Percentage growth	10.1	-1.3	-0.3	-1.4	-3.6
	Wireline total	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	Retail	15.6	16.3	17.5	18.4	19.5	5.8%
	Percentage growth	11.1	4.9	7.2	5.0	6.1
	Wholesale	0.5	0.5	0.5	0.7	0.8	16.5%
	Percentage growth	-8.0	19.3	-12.9	50.6	17.6
	Wireless total	16.0	16.9	18.0	19.1	20.4	6.2%
	Percentage growth	9.3	5.3	6.6	6.2	6.5
Retail total		36.6	37.3	38.1	39.1	40.2	2.3%
Percentage growth		5.2	1.8	2.2	2.4	2.9
Wholesale total		3.6	3.6	3.5	3.7	3.7	1.2%
Percentage growth		7.4	1.4	-2.2	5.6	0.5
Total		40.3	41.0	41.7	42.8	43.9	2.2%
Percentage growth		5.4	1.8	1.8	2.7	2.7

1. Estimates were made to capture revenues of the smaller TSPs that were not required to complete detailed survey forms.
2. Local and Access terminal equipment and other non-telecommunications revenues were excluded.

Source: CRTC data collection

Figure 5.1.1 Telecommunications revenues and annual growth

Source: CRTC data collection

Table 5.1.2 Telecommunications revenues, by market sector ($ billions)

			2008	2009	2010	2011	2012	CAGR 2008-2012
Wireline	Voice	Local and access	9.6	9.4	9.1	9.0#	8.6	-2.6%
		Percentage growth	0.1	-1.9	-2.7	-1.9	-4.2
		Long distance	4.2	3.9	3.4	3.0#	2.7	-10.3%
		Percentage growth	-3.8	-7.1	-11.0	-11.8	-11.2
		Voice subtotal	13.7	13.2	12.6	12.0	11.3	-4.8%
		Percentage growth	-1.1	-3.5	-5.0	-4.6	-6.0
	Non-voice	Internet	6.1	6.5	6.8	7.2	7.6	5.6%
		Percentage growth	9.1	6.1	4.2	6.3	5.9
		Newer data protocols	1.5	1.7	1.8	2.1	2.2	10.5%
		Percentage growth	15.1	14.4	8.3	12.2	7.2
		Legacy data, private line, and other	2.8	2.6	2.5	2.4	2.4	-3.8%
		Percentage growth	-0.4	-8.3	-5.3	-2.9	1.6
		Data and private line subtotal	4.3	4.3	4.3	4.5	4.7	1.8%
		Percentage growth	4.4	-0.5	0.0	3.5	4.1
		Non-voice subtotal	10.5	10.8	11.1	11.7	12.3	4.1%
		Percentage growth	7.1	3.4	2.5	5.3	5.2
	Total wireline		24.2	24.0	23.7	23.7	23.5	-0.6%
	Percentage growth		2.3	-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
Total			40.3	41.0	41.7	42.8	43.9	2.2%
Percentage growth			5.4	1.8	1.8	2.7	2.7

Source: CRTC data collection

b) Technology indicators

Figure 5.1.2 Annual telecommunications revenue growth, by market sector

Source: CRTC data collection

Figure 5.1.3 Residential IP-provisioned service revenues

Source: CRTC data collection

Figure 5.1.4 Total telecommunications revenue market share, by type of TSP, 2012

Source: CRTC data collection

c) Industry characteristics

Table 5.1.3 Wireline telecommunications revenue market share (%), by type of TSP, 2012

		Retail			Wholesale	Total
		Residential	Business	Total
Incumbent TSPs (excl. out-of-territory)		51.7	65.7	57.9	72.1	59.7
Alternative TSPs	Incumbent TSPs (out-of-territory)	0.1	12.3	5.5	12.7	6.4
	Facilities-based non-incumbent TSPs	42.8	13.2	29.7	12.1	27.5
	Resellers	5.3	8.8	6.9	3.1	6.4
	Alternative TSPs subtotal	48.6	33.2	41.8	25.6	39.8

Source: CRTC data collection

Figure 5.1.5 Distribution of telecommunications revenues, by market sector

Source: CRTC data collection

Table 5.1.4 Percentage of telecommunications revenues generated by companies operating in multiple markets

Number of markets1	Number of reporting companies operating in these markets2			Percentage of telecom revenues generated in these markets
	2010	2011	2012	2010	2011	2012
6	10	10	10	89	88	87
5	12	14	15	5	5	6
4	23	19	22	3	2	2
3	29	38	41	2	2	2
2	31	33	26	1	2	1
1	56	52	65	1	1	1

• Markets includes local and access, long distance, Internet, data and private line, and wireless markets.
• Affiliates are included with their parent company.

Source: CRTC data collection

Figure 5.1.6 Telecommunications revenues for the top 5 company groups, the next 5 company groups, and the remaining company groups

• Top 5 are Bell, MTS, Rogers, Shaw and TCC.
• Next 5 are Bragg, Cogeco, Quebecor, SaskTel and Telesat Canada

Source: CRTC data collection

Figure 5.1.7 Total telecommunications revenue market share, by type of TSP, 2012

Source: CRTC data collection

Table 5.1.5 Total telecommunications revenues, by type of service provider ($ millions)

				2009	2010	2011	2012
Incumbent TSPs	Large incumbent TSPs			26,777.9	26,752.3	27,203.0#	27,478.5
	Small incumbent TSPs			401.8	417.5	469.9	474.4
	Subtotal			27,179.7	27,169.8	27,672.9#	27,952.9
	Less: out-of-territory			4,290.6	4,326.1	4,105.6 #	4,934.6
	Incumbents (excl. out-of-territory)			22,889.1	22,843.7	23,567.3	23,018.3
	Percent of total			56%	55%	55%	52%
Alternative TSPs	Facilities-based carriers		Incumbents (out-of-territory)	4,290.6	4,326.1	4,105.6	4,934.6
			Cable BDUs	11,428.4	12,237.0	12,734.9	13,272.9
			Utility telcos and other	723.7	713.5	849.8	1,148.7
			Subtotal alternative TSPs	16,442.6	17,276.5	17,690.3	19,356.2
	Resellers			1,594.7	1,533.8	1,522.8	1,540.7
	Total facilities-based and resellers			18,037.2	18,810.3	19,213.1	20,896.9
	Percent of total			44%	45%	45%	48%
Total				40,926.4	41,654.0	42,780.4	43,915.2

Source: CRTC data collection

d) Financial performance

Figure 5.1.8 Telecommunications revenues and EBITDA margins

• 2010 Wireline – Incumbent TSPs (including out-of-territory) EBITDA figure has been restated due to company adjustments.

Source: CRTC data collection

Table 5.1.6 Telecommunications capex, by type of TSP ($ billions)

			2008	2009	2010	2011	2012	CAGR 2008-2012
Wireline	Incumbent TSPs1		4.1	4.2	4.4	4.6	4.4	1.6%
	Percentage growth		-1.4	1.4	5.1	5.4	-5.0
	Alternative TSPs2	Facilities-based TSPs	1.7	1.5	2.1	2.6#	2.7	12.1%
		Percentage growth	5.6	-10.7	40.2	20.5	4.8
		Resellers	0.1	0.0	0.0	0.0	0.0	-14.8%
		Percentage growth	-2.5	-59.0	-35.5	33.6	48.8
		Alternative TSPs total	1.8	1.6	2.2	2.6#	2.7	11.3%
		Percentage growth	5.2	-12.8	38.7	20.7	5.2
	Wireline total		5.9	5.7	6.6	7.2	7.1	4.8%
	Percentage growth		0.5	-2.9	14.2	10.4	-1.3
Wireless			6.1	2.2	1.8	2.3#	2.5	-19.7%
Percentage growth			220.2	-63.0	-18.9	27.2	9.2
Wireline and wireless total			12.0	8.0	8.4	9.6	9.7	-5.2%
Percentage growth			54.1	-33.4	4.9	14.1	1.2

1. Included out-of-territory operations

2. Excludes incumbent out-of-territory operations

• Globalive, Public Mobile and Data & Audio expenditures were excluded due to insufficient data.

Source: CRTC data collection

Figure 5.1.9 Telecommunications capex as a percentage of revenues, by type of TSP¹

1. Incumbent TSPs (including out-of-territory) and cable BDUs and other facilities-based TSPs exclude their respective wireless services.

• Globalive, Public Mobile and Data & Audio expenditures were excluded due to insufficient data.

Source: CRTC data collection

e) Forbearance and wholesale revenue data

Table 5.1.7 Percentage of telecommunications revenues generated by forborne services

	2008	2009	2010	2011	2012
Local and access1	75	71	73	76	77
Long distance	94	96	96	95	99
Internet	98	99	98	98	98
Data and private line1	80	82	81	83	84
Wireless	100	100	100	100	100
Overall	90	91	92	93	93

• Additional companies reported in 2012

Source: CRTC data collection     

Figure 5.1.10 Telecommunications wholesale service revenues, tariff v. off-tariff v. non-tariff, 2012

Source: CRTC data collection

Figure 5.1.11 Telecommunications wholesale service revenues, by type of service, 2012

Source: CRTC data collection

5.2 Wireline voice market sector

Overview

Canadians were served by over 100 providers of local telephone service and over 150 providers of long distance service in 2012. These service providers included the following:

• large incumbent TSPs, which provide both local and long distance services, primarily over their own networks;
• small incumbent TSPs, which operate in limited areas of Ontario, Quebec, and British Columbia, and include municipally owned, public, and private carriers;
• cable BDUs, which provide network-based local and long distance services on a managed network;
• ISPs which provide local and/or long distance service over the public Internet network; and
• resellers, which do not own their own facilities and tend to concentrate on the long distance market by offering dial-around or prepaid card services.

This section presents revenue and demand quantities (i.e., number of local subscriber lines, payphones and long distance minutes) generally over a five-year period to display the trends in the sector. Performance and technology indicators, such as ARPU and market share data, and measurement data identifying innovation and technology deployment in the network and service offerings are also provided, generally for a five-year period.

Wireline voice sector at a glance

	2011	2012	% change
Revenues ($ billions)	11.8	11.1	-5.8
Local and access1	8.8	8.5	-4.0
Long distance2	3.0	2.7	-11.2
Local lines (millions)	19.9	19.4	-2.7
Monthly retail local and long distance revenues per line	$47.31#	$46.27	-2.2
Monthly retail local revenues per line	$36.28#	$36.19	-0.3
Residence	$31.23#	$30.80	-1.3
Business	$46.65#	$47.35	1.5
Retail long distance revenues per minute	$0.058#	$0.055	-5.0
Residence	$0.068#	$0.067	-0.8
Business	$0.044#	$0.040	-10.0
Incumbent revenue market share (excluding out-of-territory)
Local and access	76%	74%
Long distance	61%#	63%

1. Revenues from telephony services that do not involve connectivity to the PSTN (i.e. computer‑to‑computer communication) and revenues from wireline terminal equipment sales (telephones and PBX equipment) are excluded from local and access revenues.
2. Long distance calls originating from mobile phones are included in the wireless section of this report. However, revenues and minutes from wireline and wireless long distance calls associated with calling cards are included in the wireline voice sector.

Source: CRTC data collection

Statistical information – Wireline voice market sector

a) Industry revenues

Table 5.2.1 Local and access, and long distance revenues

	2008	2009	2010	2011	2012	CAGR 2008 – 2012
Total local and access revenues ($ millions)	9,550	9,386	9,132	8,962#	8,584	-2.6%
Annual growth (%)	0.1	-1.7	-2.7	-1.9	-4.2
Less: contribution revenues ($ millions)	209	203	165	157	132	-10.9%
Local and access service revenues ($ millions)	9,342	9,183	8,967	8,806#	8,453	-2.5%
Annual growth (%)	0.2	-1.7	-2.4	-1.8	-4.0
Long distance revenues ($ millions)	4,153	3,856	3,432	3,026#	2,687	-10.3%
Annual growth (%)	-3.8	-7.1	-11.0	-11.8	-11.2
Local and access and long distance revenues ($ millions)	13,494	13,039	12,399	11,831#	11,140	-4.7 %
Annual growth (%)	-1.1	-3.4	-4.9	-4.6	-5.8

• Excludes revenues from small, access-independent VoIP providers.

Source: CRTC data collection

Figure 5.2.1 Large incumbent TSPs’ payphone revenues and quantities

• Approximately 10% of payphones are equipped with teletypewriter (TTY) capability.

Source: CRTC data collection

Table 5.2.2 Local and access revenues, by type of TSP ($ millions)

	2009	2010	2011	2012	CAGR 2009 – 2012
Residential
Incumbent TSPs (excluding out-of-territory)	3,546	3,349	3,129	2,906	-6.4 %
Annual growth %	-7.3	-5.6	-6.6	-7.1
Incumbent TSPs (out-of-territory)	9	9	12#	16	20.2 %
Annual growth %	-5.9	-1.8	31.7	34.2
Non-incumbent, alternative TSPs (excluding cable BDUs)	140	123	161#	173	7.3 %
Annual growth %	10.7	-12.2	30.7	7.6
Cable BDUs	1,099	1,252	1,285	1,307	6.0 %
Annual growth %	21.3	13.9	2.6	1.7
Total residential	4,794	4,732	4,586	4,401	-2.8 %
Annual growth %	-1.5	-1.3	-3.1	-4.0
Business
Incumbent TSPs (excluding out-of-territory)	3,017	2,934	2,813#	2,664	-4.1 %
Annual growth %	-2.6	-2.7	-4.1	-5.3
Incumbent TSPs (out-of-territory)	309	270	259#	306	-0.3 %
Annual growth %	-0.1	-12.6	-4.0	18.1
Non-incumbent, alternative TSPs	189	182	266#	291	15.5 %
Annual growth %	28.7	-3.9	46.3	9.4
Total business	3,514	3,386	3,339#	3,261	-2.5 %
Annual growth %	-1.1	-3.7	-1.4	-2.3
Retail
Incumbent TSPs (excluding out-of-territory)	6,563	6,282	5,942#	5,570	-5.3 %
Annual growth %	-5.2	-4.3	-5.4	-6.3
Incumbent TSPs (out-of-territory)	318	279	271#	322	0.4 %
Annual growth %	-0.3	-12.3	-2.9	18.8
Non-incumbent, alternative TSPs	1,428	1,556	1,711 #	1,771	7.4 %
Annual growth %	21.0	9.0	10.0	3.5
Total retail	8,308	8,117	7,924#	7,663	-2.7 %
Annual growth %	-1.3	-2.3	-2.4	-3.3
Wholesale
Incumbent TSPs (excluding out-of-territory)	660	653	682#	623	-1.9 %
Annual growth %	-3.8	-1.1	4.5	-8.7
Incumbent TSPs (out-of-territory)	115	105	112#	85	-9.7 %
Annual growth %	0.4	-8.6	6.5	-24.2
Non-incumbent, alternative TSPs	49	41	39#	44	-3.7 %
Annual growth %	-3.7	-17.6	-4.6	13.6
Total wholesale	824	798	832#	751	-3.0 %
Annual growth %	-3.2	-3.1	4.3	-9.8
Total
Incumbent TSPs (excluding out-of-territory)	7,223	6,935	6,624#	6,193	-5.0 %
Annual growth %	-5.1	-4.0	-4.5	-6.5
Incumbent TSPs (out-of-territory)	432	383	382#	406	-2.1 %
Annual growth %	-0.1	-11.3	-0.3	6.2
Non-incumbent, alternative TSPs	1,477	1,597	1,750#	1,815	7.1 %
Annual growth %	20.0	8.1	9.6	3.7
Total revenues	9,132	8,915	8,756#	8,414	-2.7 %
Annual growth %	-1.5	-2.4	-1.8	-3.9

Source: CRTC data collection

Table 5.2.3 Local wholesale revenues, by major component ($ millions)

	2008	2009	2010	2011	2012	CAGR 2008 – 2012
Interconnection	281	280	276	254	220	-5.9%
Centrex	97	97	89	88	76	-5.9%
PSTN access	280	290	288	354	327	4.0%
Unbundled loops	116	92	79	60	47	-20.3%
Other revenues	47	33	42	42	44	-1.9%
Total	821	792	774	798	714	-3.4%

Source: CRTC data collection

Table 5.2.4 Long distance revenues, by type of TSP ($ millions)

	2009	2010	2011	2012	CAGR 2009 – 2012
Residential
Incumbent TSPs (excluding out-of-territory)	1,288	1,136	1,051#	931	-10.2%
Annual growth %	-10.6	-11.8	-7.5	-11.4
Incumbent TSPs (out-of-territory)	2	2	1	1	-26.0%
Annual growth %	-21.5	-16.4	-21.8	-38.1
Non-incumbent, alternative TSPs	709	590	554	492	-11.5%
Annual growth %	-2.5	-16.9	-6.0	-11.2
Total residential	1,999	1,728	1,606#	1,424	-10.7%
Annual growth %	-7.9	-13.6	-7.0	-11.3
Business
Incumbent TSPs (excluding out-of-territory)	669	565	491#	449	-12.5%
Annual growth %	-2.4	-15.6	-13.1	-8.5
Incumbent TSPs (out-of-territory)	161	115	119#	89	-17.9%
Annual growth %	-8.4	-28.2	2.7	-25.0
Non-incumbent, alternative TSPs	247	226	193	173	-11.1%
Annual growth %	-16.2	-8.3	-14.8	-10.2
Total business	1,077	907	802#	711	-12.9%
Annual growth %	-6.9	-15.8	-11.5	-11.3
Retail
Incumbent TSPs (excluding out-of-territory)	1,957	1,701	1,542#	1,380	-11.0%
Annual growth %	-7.9	-13.1	-9.4	-10.5
Incumbent TSPs (out-of-territory)	163	117	120#	90	-18.0%
Annual growth %	-8.6	-28.1	2.3	-25.1
Non-incumbent, alternative TSPs	956	816	747	665	-11.4%
Annual growth %	-6.4	-14.6	-8.5	-11.0
Total retail	3,076	2,634	2,408#	2,135	-11.5%
Annual growth %	-7.5	-14.4	-8.6	-11.3
Wholesale
Incumbent TSPs (excluding out-of-territory)	373	311	315#	323	-4.6%
Annual growth %	-11.2	-16.6	1.3	2.6
Incumbent TSPs (out-of-territory)	231	229	205#	138	-15.8%
Annual growth %	-11.8	-1.1	-10.5	-32.5
Non-incumbent, alternative TSPs	176	257	97	90	-20.0%
Annual growth %	21.4	46.3	-62.3	-7.1
Total wholesale	780	797	617#	552	-10.9%
Annual growth %	-5.7	2.2	-22.6	-10.6
Total
Incumbent TSPs (excluding out-of-territory)	2,330	2,012	1,857#	1,704	-9.9%
Annual growth %	-8.5	-13.6	-7.7	-8.2
Incumbent TSPs (out-of-territory)	394	346	325#	228	-16.7%
Annual growth %	-10.5	-12.2	-6.2	-29.8
Non-incumbent, alternative TSPs	1,132	1,073	844	755	-12.6%
Annual growth %	-3.0	-5.2	-21.4	-10.5
Total revenues	3,856	3,432	3,026#	2,687	-11.3%
Annual growth %	-7.1	-11.0	-11.8	-11.2

Source: CRTC data collection

b) Subscriber line and minute data

Table 5.2.5 Number of local telephone lines, access dependent v. access independent (thousands)

	2008	2009	2010	2011	2012	CAGR 2008 – 2012
Local lines excluding  access-independent VoIP providers	20,947	20,348	19,996	19,918 #	19,388	-1.9%
Annual growth %	0.1	-2.9	-1.7	-0.4	-2.7
Access-independent VoIP lines	153	161	n/a	356	812	51.8 %
Annual growth %	-8.5	5.0	n/a	n/a	128.5

• Additional companies responded in 2012.
• Includes non-revenue generating lines.

Source: CRTC data collection

Figure 5.2.2 Access-independent and access-dependent retail VoIP local lines, by market 2012

Source: CRTC data collection

Table 5.2.6 Local and access lines, by type of TSP (thousands)

	2009	2010	2011	2012	CAGR 2009 – 2012
Residential
Incumbent TSPs (excluding out-of-territory)	8,818	8,142	7,543	6,942	-7.7%
Annual growth %	-7.6	-7.7	-7.4	-8.0
Incumbent TSPs (out-of-territory)	28	27	34	33	4.7%
Annual growth %	4.6	-6.1	26.7	-3.5
Non-incumbent, alternative TSPs (excluding cable BDUs)	416	463	600	674	17.4%
Annual growth %	-17.6	11.3	29.5	12.3
Cable BDUs	3,425	3,947	4,061	4,258	7.5%
Annual growth %	17.4	15.2	2.9	4.8
Total residential	12,687	12,578	12,238	11,907	-2.1%
Annual growth %	-2.3	-0.9	-2.7	-2.7
Business
Incumbent TSPs (excluding out-of-territory)	4,968	4,721	4,598#	4,441	-3.7%
Annual growth %	-5.7	-5.0	-2.6	-3.4
Incumbent TSPs (out-of-territory)	617	638	752	639	1.2%
Annual growth %	0.5	3.3	17.9	-15.0
Non-incumbent, alternative TSPs	435	457	614	660	14.9%
Annual growth %	11.7	5.0	34.5	7.4
Total business	6,021	5,815	5,964#	5,740	-1.6%
Annual growth %	-4.0	-3.4	2.6	-3.8
Retail
Incumbent TSPs (excluding out-of-territory)	13,786	12,863	12,140#	11,383	-6.2%
Annual growth %	-6.9	-6.7	-5.6	-6.2
Incumbent TSPs (out-of-territory)	646	664	786	671	1.3%
Annual growth %	0.7	2.9	18.3	-14.5
Non-incumbent, alternative TSPs	4,276	4,867	5,276	5,592	9.4%
Annual growth %	12.2	13.8	8.4	6.0
Total retail	18,708	18,394	18,202#	17,647	-1.9%
Annual growth %	-2.9	-1.7	-1.0	-3.0
Wholesale
Incumbent TSPs (excluding out-of-territory)	533	515	525#	495	-2.5%
Annual growth %	-14.4	-3.4	1.9	-5.8
Incumbent TSPs (out-of-territory)	300	266	322	247	-6.2%
Annual growth %	14.6	-11.2	21.0	-23.3
Non-incumbent, alternative TSPs	99	88	151#	300	44.7%
Annual growth %	1.7	-11.1	71.7	98.6
Total wholesale	932	870	999#	1,042	3.8%
Annual growth %	-5.1	-6.7	14.8	4.4
Total
Incumbent TSPs (excluding out-of-territory)	14,319	13,378	12,655#	11,878	-6.0%
Annual growth %	-7.2	-6.6	-5.4	-6.1
Incumbent TSPs (out-of-territory)	946	931	1,108	919	-1.0%
Annual growth %	4.7	-1.6	19.1	-17.1
Non-incumbent, alternative TSPs	4,375	4,955	5,437	5,892	10.4%
Annual growth %	11.9	13.2	9.7	8.4
Total lines	19,640	19,263	19,200#	18,689	-1.6%
Annual growth %	-3.0	-1.9	-0.3	-2.7

Source: CRTC data collection

Figure 5.2.3 Alternative TSP local retail lines (excluding incumbent out-of-territory), by type of facility

Source: CRTC data collection

Figure 5.2.4 Alternative TSP local residential and business lines, by type of facility, 2012

Source: CRTC data collection

c) Performance and technology indicators

Table 5.2.7 Local and long distance retail monthly revenues per line ($)

Local and long distance	2009	2010	2011	2012	CAGR 2009 – 2012
Residential	44.62	42.79	42.17#	40.77	-3.0%
Annual growth %	-1.2	-4.1	-1.5	-3.3
Business	63.55	61.50	57.85#	57.67	-3.2%
Annual growth %	1.6	-3.2	-5.9	-0.3
Total retail	50.71	48.71	47.31#	46.27	- 3.0%
Annual growth %	-0.2	-3.9	-2.9	-2.2

Source: CRTC data collection

Table 5.2.8 Local and access retail monthly revenues ($), per line by type of TSP

	2009	2010	2011	2012	CAGR 2009 – 2012
Residential
Incumbent TSPs (excluding out-of-territory)	33.51	34.27	34.57	34.88	1.3%
Annual growth %	0.3	2.3	0.9	0.9
Incumbent TSPs (out-of-territory)	26.42	27.62	28.71#	39.93	14.8%
Annual growth %	-10.0	4.6	3.9	39.1
Non-incumbent, alternative TSPs (excluding cable BDUs)	28.04	22.10	22.31#	21.38	-8.6%
Annual growth %	34.4	-21.2	0.9	-4.2
Cable BDUs	26.73	26.42	26.36	25.58	-1.5%
Annual growth %	3.3	-1.1	-0.2	-3.0
Total residential	31.49	31.35	31.23	30.80	-0.7%
Annual growth %	0.8	-0.4	-0.4	-1.3
Business
Incumbent TSPs (excluding out-of-territory)	50.60	51.79	50.99#	49.99	-0.4%
Annual growth %	3.4	2.4	-1.5	2.0
Incumbent TSPs (out-of-territory)	41.67	35.26	28.71#	39.91	-1.4%
Annual growth %	-0.6	-15.4	-18.6	39.0
Non-incumbent, alternative TSPs	36.22	33.17	36.09#	36.76	0.5%
Annual growth %	15.2	-8.4	8.8	1.9
Total business	48.64	48.51	46.65#	47.35	-0.9%
Annual growth %	3.1	-0.3	-3.8	1.5
Retail
Incumbent TSPs (excluding out-of-territory)	39.67	40.70	40.79#	40.78	0.9%
Annual growth %	1.8	2.6	0.2	0.0
Incumbent TSPs (out-of-territory)	41.00	34.95	28.71#	39.91	-0.9%
Annual growth %	-1.0	-14.8	-17.9	39.0
Non-incumbent, alternative TSPs	27.82	26.65	27.03#	26.39	-1.7%
Annual growth %	7.9	-4.2	1.4	-2.4
Total retail	37.01	36.78	36.28#	36.19	-0.7%
Annual growth %	1.6	-0.6	-1.3	-0.3

Source: CRTC data collection

Table 5.2.9 Local and access, and long distance forborne revenues and lines (%)

	2009	2010	2011	2012
Forborne revenues
Local and access1	71	73	76	72
Long distance	96	96	95	96
Forborne local lines
Residential	77	80	82	84
Business	68	72	76	78

1. Additional companies responded in 2012.

Source: CRTC data collection

Table 5.2.10 Incumbent TSP provincial retail local market share, by line (%)

Province	2009	2010	2011	2012
British Columbia	75.6	67.3	65.2	60.9
Alberta	71.7	68.2	66.8	64.6
Saskatchewan	94.3	93.0	92.5	90.9
Manitoba	87.1	83.7	80.2	77.4
Ontario	73.4	70.2	67.6	66.4
Quebec	67.0	62.8	58.0	55.5
New Brunswick	87.5	85.1	83.1	81.6
Nova Scotia	70.4	67.8	65.1	65.8
Prince Edward Island	79.2	74.7	71.7	71.3
Newfoundland and Labrador	90.6	89.4	90.9	81.2
All provinces	73.8	69.8	66.9	64.8

Source: CRTC data collection

Table 5.2.11 Incumbent TSP residential and business local market share (%), by line for major centres

Province	Major centre	Residential lines		Business lines
		2011	2012	2011	2012
British Columbia	Vancouver	61.1	56.5	62.8	62.3
	Victoria	48.5	45.1	66.1	61.6
Alberta	Calgary	52.3	49.6	62.2	61.0
	Edmonton	58.8	56.1	64.7	62.2
Saskatchewan	Saskatoon	76.8	72.7	96.1	94.2
	Regina	85.6	83.0	98.1	97.6
Manitoba	Winnipeg	62.7	56.1	84.5	82.6
Ontario	Toronto	57.9	55.4	72.9	75.9
	Ottawa  – Gatineau	56.7	53.4	88.4	88.8
	Hamilton	54.8	50.9	75.0	75.1
	London	59.5	56.3	75.3	76.9
	Kitchener  – Waterloo	56.9	53.8	76.3	76.7
	St. Catharines  – Niagara	63.4	59.6	80.2	80.8
	Windsor	65.3	61.9	67.2	68.1
	Oshawa	53.8	52.1	83.9	86.4
Quebec	Montréal	48.4	44.6	73.6	72.6
	Québec	39.9	38.0	69.5	68.2
New Brunswick	Fredericton	72.9	72.4	99.5	99.6
Nova Scotia	Halifax	45.6	48.8	76.0	75.6
Prince Edward Island	Charlottetown	53.0	51.7	76.3	75.2
Newfoundland and Labrador	St. John's	75.6	70.3	99.7	99.3

• Major centre boundaries are defined using Statistics Canada’s census metropolitan area and census agglomeration definitions.

Source: CRTC data collection

Figure 5.2.5 Number of payphones per 1000 households

Source: CRTC data collection

Table 5.2.12 Large incumbent TSPs’ retail long distance revenue market share (%), by region

Region	2008	2009	2010	2011	2012
B.C., Alberta	73	74	68	74	75
Saskatchewan	85	84	83	92	92
Manitoba	83	81	78	84	83
Ontario, Quebec	56	55	61	71	70
Atlantic	81	80	81	83	83

Source: CRTC data collection

Table 5.2.13 Long distance retail revenues ($) per minute, by type of TSP

	2009	2010	2011	2012	CAGR 2009 - 2012
Residential
Incumbent TSPs (excluding out-of-territory)	0.100	0.092	0.089#	0.088	-4.3 %
Annual growth %	-9.5	-8.4	-2.3	-2.0
Incumbent TSPs (out-of-territory)	0.071	0.082	0.084	0.072	0.4%
Annual growth %	3.4	14.1	2.9	-13.8
Non-incumbent, alternative TSPs	0.054	0.052	0.046	0.047	-5.1%
Annual growth %	-5.9	-4.9	-10.4	0.4
Total residential	0.077	0.072	0.068#	0.067	-4.5 %
Annual growth %	-9.0	-5.8	-6.6	-0.8
Business
Incumbent TSPs (excluding out-of-territory)	0.067	0.059	0.061#	0.049	-9.7%
Annual growth %	0.8	-11.7	2.6	-18.8
Incumbent TSPs (out-of-territory)	0.037	0.028	0.031#	0.027	-10.1%
Annual growth %	-4.0	-24.0	12.1	-14.7
Non-incumbent, alternative TSPs	0.039	0.038	0.031	0.032	-6.7%
Annual growth %	-15.1	-1.7	-20.2	3.6
Total business	0.052	0.046	0.044#	0.040	-8.6 %
Annual growth %	-4.0	-11.0	-4.7	-10.0

Source: CRTC data collection

Figure 5.2.6 Fibre-based lines (FTTN and FTTP) as a percentage of total lines, 2012

Source: CRTC data collection

5.3 Internet market sector

Overview

Canadians were served by over 500 Internet service providers. Incumbent TSPs provided Internet services using mainly DSL, fibre-optic and dial-up  facilities. Cable companies provided service mainly via cable modem and fibre-optic, facilities. Utility telcos, municipalities, and other TSPs provided Internet services using DSL, fibre-optic, satellite, fixed-wireless, and dial-up facilities. Resellers essentially rely on facilities-based TSPs to provide them with facilities on a wholesale basis. Resellers provided Internet access service, generally using leased DSL facilities and, to a lesser extent, cable-modem, and fibre-optic facilities.

This section presents revenue and demand quantities (i.e., number of Internet subscribers) generally over a five-year period to display the trends in the sector. Performance and technology indicators, such as ARPU and market share data, as well as plans and pricing data are also presented.

Internet sector and broadband availability at a glance

	2011	2012	% Growth
Revenues ($ billions)	7.2	7.6	5.9
Internet access and transport
Residential	4.9	5.4	9.1
Business	1.2	1.2	0.7
Wholesale	0.3	0.3	9.3
Other	0.8	0.7	-7.9
Residential subscribers (millions)	10.7	11.0	3.0
Residential high-speed access revenues per subscriber per month	$38.79	$41.05
Internet access revenue market share
Top five major ISPs (including affiliates)	76%	76%
Cable operators	51%	52%
ILECs (excluding out-of-territory)	37%	37%
Residential penetration:   All speeds	78%	79%
High-speed	76%	78%
Broadband (1.5 Mbps and higher)	72%	75%
Broadband (5 Mbps and higher)	54%	62%
Average GB downloaded per month per residential subscriber	17.9	28.4	56.2
Average GB uploaded per month per residential subscriber	3.8	5.4	42.2
Monthly average residential high-speed service churn rate	1.65%	1.83%
Monthly average business high-speed service churn rate	1.57%	2.49%

• Rural is defined as areas with a density of fewer than 400 people per square kilometre, or population centres with fewer than 1,000 people.
• The top five major ISPs are Bell Canada, Quebecor, Rogers, Shaw and TCC.
• Churn rate is a measure of subscriber turnover, expressed as an average annual percentage. It is derived by dividing the number of subscribers that have left by the total number of Internet subscribers.  

Source: CRTC data collection

Statistical information – Internet market sector

a) Industry revenues

Table 5.3.1 Internet revenues, by type of service ($ millions)

		2008	2009	2010	2011	2012	Growth 2011-2012	CAGR 2008-2012
Residential	Incumbent TSPs (excluding out-of-territory)
	Dial-up	116	92	64	46	30	-34.1%	-28.5%
	High-speed	1,406	1,506	1,588	1,732	1,860	7.4%	7.2%
	Total	1,522	1,598	1,652	1,778	1,890	6.3%	5.6%
	Cable BDUs
	Dial-up	2	1	1	1	0	-32.4%	-32.2%
	High-speed	2,129	2,419	2,572	2,811	3,065	9.0%	9.5%
	Total	2,131	2,420	2,573	2,811	3,065	9.0%	9.5%
	Incumbent TSPs (excluding out-of-territory) plus cable BDUs
	Dial-up	118	93	65	47	31	-34.1%	-28.6%
	High-speed	3,535	3,925	4,160	4,543	4,925	8.4%	8.6%
	Total	3,654	4,018	4,225	4,590	4,956	8.0%	7.9%
	Other TSPs
	Dial-up	71	48	31	23	12	-44.8%	-35.2%
	High-speed	175	219	282	310	400	29.0%	23.0%
	Total	245	267	313	332	413	24.0%	13.9%
	Total of the above
	Dial-up	189	141	96	69	43	-37.6%	-30.8%
	High-speed	3,710	4,144	4,442	4,853	5,325	9.7%	9.5%
	Residential total	3,899	4,285	4,538	4,923	5,369	9.1%	8.3%
Business	Incumbent TSPs (excluding out-of-territory)	457	444	478	481	499	3.6%	2.2%
	Cable BDUs	201	227	284	309	273	-11.4%	8.0%
	Total	657	671	762	790	772	-2.3%	4.1%
	Other TSPs
	Incumbent TSPs  (out-of-territory)	98	93	81	81	81	-0.1%	-4.7%
	Resellers, utility telcos, and other carriers	241	255	282	272	285	4.9%	4.2%
	Total	339	348	364	353	366	3.7%	1.9%
	Business access total	997	1,019	1,125	1,142	1,138	-0.4%	3.4%
	Business transport total	76	67	77	521	651	25.0%	-4.0%
	Business total	1,073	1,086	1,202	1,194	1,202	0.7%	2.9%
Wholesale access	Higher capacity access and transport	54	48	42	53	45	-15.7%	-4.5%
	Lower capacity access	161	213	218	266	303	14.2%	17.1%
	Wholesale total	215	261	260	319	348	9.3%	12.8%
Other	Applications, equipment, and other Internet-related services	939	868	772	766	706	-7.9%	-6.9%
Grand total		6,126	6,499	6,772	7,202	7,625	5.9%	5.6%

• Wholesale Internet access and transport services are generally sold to ISPs. ISPs use these services to provide Internet access service to their retail customers. Sales to non‑ISP entities, such as VoIP service providers, are included in the wholesale revenues presented in Table 5.3.1 as “Higher capacity access and transport” revenues.
• “Lower capacity access” includes services such as Bell Canada's GAS, TCC's VPOP, DSL, and cable BDU-provided TPIA service, as well as satellite capacity and dial‑up bundled with Internet access sold to ISPs.
• In previous years, modem rental fees for residential service were included with Internet access service revenues.  However, the fees are no longer included as of 2008. In 2008, the fees were approximately $121 million.

1. Due to changes in company reporting, the business transport totals in 2011 and 2012 are not comparable to previous years.

Source: CRTC data collection

b) Subscriber data

Table 5.3.2 Residential Internet subscribers, by type of TSP (thousands)

	2008	2009	2010	2011	2012	CAGR 2008-2012
Incumbent TSPs (excluding out-of-territory)
Dial-up	433	286	210	137	97	-31.1%
Annual growth (%)	-23.5	-33.9	-26.6	-34.9	-28.8
Share of total dial-up (%)	59.1	58.8	57.3	55.5	53.2
High-speed	3,584	3,673	3,762	3,874	4,014	2.9%
Annual growth (%)	5.3	2.5	2.4	3.0	3.6
Share of total high-speed (%)	39.5	38.4	37.6	37.2	37.1
Total	4,017	3,959	3,972	4,011	4,111	0.6%
Annual growth (%)	1.2	-1.4	0.3	1.0	2.5
Share of total (%)	40.9	39.3	38.3	37.6	37.4
Cable BDUs
Dial-up	18	14	10	7	6	-22.9%
Annual growth (%)	1.9	-24.4	-23.0	-28.9	-14.6
Share of total dial-up (%)	2.4	2.8	2.8	3.0	3.5
High-speed	4,990	5,358	5,642	5,839	5,925	4.4%
Annual growth (%)	9.1	7.4	5.3	3.5	1.5
Share of total high-speed (%)	55.0	56.0	56.4	56.0	54.8
Total	5,008	5,372	5,653	5,846	5,932	4.3%
Annual growth (%)	9.1	7.3	5.2	3.4	1.5
Share of total (%)	51.1	53.4	54.5	54.8	54.0
Incumbent TSPs (excluding out-of-territory) plus cable BDUs total
Dial-up	451	299	220	144	104	-30.8%
Annual growth (%)	-22.8	-33.6	-26.5	-34.6	-28.1
Share of total dial-up (%)	61.6	61.6	60.1	58.5	56.6
High-speed	8,574	9,031	9,404	9,713	9,939	3.8%
Annual growth (%)	7.5	5.3	4.1	3.3	2.3
Share of total high-speed (%)	94.5	94.3	94.0	93.2	91.9
Total	9,024	9,331	9,625	9,857	10,043	2.7%
Annual growth (%)	5.4	3.4	3.1	2.4	1.9
Share of total (%)	92.0	92.7	92.8	92.4	91.4
Other TSPs
Dial-up	281	187	146	102	79	-27.1%
Annual growth (%)	-19.7	-33.6	-21.7	-30.1	-22.3
Share of total dial-up (%)	38.4	38.4	39.9	41.5	43.4
High-speed	503	545	604	712	870	14.7%
Annual growth (%)	32.9	8.2	10.8	18.0	22.1
Share of total high-speed (%)	5.5	5.7	6.0	6.8	8.1
Total	785	731	750	815	950	4.9%
Annual growth (%)	32.9	8.2	2.5	8.6	16.6
Share of total (%)	8.0	7.3	7.2	7.6	8.6
Dial-up	732	486	366	246	183	-29.3%
Annual growth (%)	-21.6	-33.6	-24.6	-32.8	-25.7
Share of total (%)	7.5	4.8	3.5	2.3	1.7
High-speed	9,077	9,576	10,008	10,426	10,809	4.5%
Annual growth (%)	8.6	5.5	4.5	4.2	3.7
Share of total (%)	92.5	95.2	96.5	97.7	98.3
Grand total	9,809	10,062	10,375	10,672	10,992	2.9%
Annual growth (%)	5.6	2.6	3.1	2.9	3.0

Source: CRTC data collection

Table 5.3.3 Number of business Internet access subscriptions, by type of TSP (thousands)

	2008	2009	2010	2011	2012	CAGR 2008-2012
Dial-up	138	113	84	72	61	-18.3%
Annual growth (%)		-18.1	-26.0	-13.5	-15.2
High-speed
Incumbent TSPs (excluding out-of-territory)	431	431	447	452	444	0.8%
Annual growth (%)		0.0	3.6	1.3	-1.8
Share of total high-speed (%)	56.3	55.5	55.2	52.8	50.4
Cable BDUs	157	176	199	232	268	14.2%
Annual growth (%)		12.0	13.3	16.6	15.1
Share of total high-speed (%)	20.5	22.6	24.6	27.1	30.4
Total	588	607	646	685	712	4.7%
Annual growth (%)		3.2	6.5	6.0	3.9
Share of total high-speed (%)	76.9	78.1	79.8	80.0	80.8
Other TSPs
Incumbent TSPs   (out-of-territory)	15	12	11	19	19	5.2%
Annual growth (%)		-21.3	-8.2	76.5	-3.9
Share of total high-speed (%)	2.0	1.5	1.4	2.3	2.1
Resellers, utility telcos and other carriers	162	158	152	152	150	-1.9%
Annual growth (%)		-2.3	-3.8	-0.2	-1.1
Share of total high-speed (%)	21.2	20.4	18.8	17.7	17.1
Total	177	170	163	171	169	-1.2%
Annual growth (%)		-3.9	-4.1	5.0	-1.4
Share of total high-speed (%)	23.1	21.9	20.2	20.0	19.2
Total high-speed	765	777	809	856	881	3.6%
Annual growth (%)		1.5	4.1	5.8	2.8

Source: CRTC data collection

Figure 5.3.1 Broadband subscriptions - Incumbent TSP v. Cable BDU

Source: CRTC data collection

c) Plans and pricing

Figure 5.3.2 High-speed residential subscribers by GB downloadable capacity

Source: CRTC data collection

Table 5.3.4 Residential Internet speeds and pricing

Downstream Speed	2008	2009	2010	2011	2012
One-month revenue (%)
Lite and wideband up to 256 Kbps	2.9	0.6	0.2	0.3	0.3
Wideband 300 to 1400 Kbps	15.1	8.6	4.3	3.6	1.9
Broadband
1.5 to 4 Mbps	17.3	20.9	20.9	20.3	16.7
5 to 9 Mbps	53.6	46.5	49.1	47.0	42.0
10 to 15 Mbps	10.8	22.4	22.8	16.5	9.4
16 Mbps and higher	0.3	1.0	2.7	12.3	29.7
16 to 49 Mbps	-	-	2.4	11.8	24.6
50 Mbps and higher	-	-	0.3	0.6	5.1
Total sample	306.4	320.7	350.0	375.7	418.0
Subscribers (%)
Lite and wideband up to 256 Kbps	4.3	1.1	0.3	0.4	0.3
Wideband 300 to 1400 Kbps	19.8	12.2	5.8	4.3	2.6
Broadband
1.5 to 4 Mbps	17.0	24.5	24.2	24.6	17.7
5 to 9 Mbps	50.1	42.6	45.3	45.6	41.6
10 to 15 Mbps	8.6	19.0	22.4	15.6	10.2
16 Mbps and higher	0.2	0.6	2.0	9.5	27.6
16 to 49 Mbps	-	-	1.8	9.2	23.9
50 Mbps and higher	-	-	0.2	0.3	3.7
Total sample	8,184.4	8,516.8	8,983.1	9,440.3	9,618.4
ARPU
Lite and wideband up to 256 Kbps	$24.86	$19.55	$25.18	$33.86	$35.97
Wideband 300 to 1400 Kbps	$28.57	$26.84	$28.87	$33.03	$30.96
Broadband
1.5 to 4 Mbps	$38.22	$32.46	$33.57	$32.87	$40.78
5 to 9 Mbps	$40.00	$41.14	$42.23	$40.97	$43.97
10 to 15 Mbps	$47.06	$44.43	$39.67	$42.11	$40.34
16 Mbps and higher	$63.06	$65.08	$53.71	$51.63	$46.83
16 to 49 Mbps	-	-	$51.66	$50.76	$44.85
50 Mbps and higher	-	-	$75.80	$78.06	$59.69
Total sample	$37.44	$37.80	$38.96	$39.80	$43.46
Weighted-average upload speed (Kbps)
Lite and wideband up to 256 Kbps	131	152	209	178	168
Wideband 300 to 1400 Kbps	286	267	352	314	303
Broadband
1.5 to 4 Mbps	809	656	584	666	652
5 to 9 Mbps	744	723	870	855	1,122
10 to 15 Mbps	862	751	797	876	2,527
16 Mbps and higher	1,120	1,085	1,735	2,693	4,291
16 to 49 Mbps	-	-	1,661	2,662	2,912
50 Mbps and higher	-	-	2,529	3,667	13,199
Total sample	649	652	769	961	2,031
Weighted-average download speed	4,928	5,945	7,060	8,238	12,796
Weighted-average upload/download limit (GB)
Lite and wideband up to 256 Kbps	8.50	11.75	-	-	-
Wideband 300 to 1400 Kbps	8.75	3.04	7.20	14.9	17.75
Broadband
1.5 to 4 Mbps	43.25	32.20	22.13	69.06	98.34
5 to 9 Mbps	54.18	42.80	45.27	80.81	77.33
10 to 15 Mbps	80.81	69.53	74.28	74.22	107.18
16 Mbps and higher	101.91	104.14	112.94	179.58	160.23
16 to 49 Mbps	-	-	108.25	176.98	131.50
50 Mbps and higher	-	-	163.22	236.54	364.80
Total sample	42.34	40.32	45.04	81.11	104.90

1. Weighted-average download limits are calculated only for those plans that have limits.
2. All data excludes terminal rental revenues.

Source: CRTC data collection

d) Performance and technology indicators

Figure 5.3.3 Internet access revenue shares, by type of of ISP, 2012

Source: CRTC data collection

Figure 5.3.4 Business Internet access revenues, by access technology, 2008 v. 2012

• Other” includes the remaining technologies, such as, but not limited to, ISDN, fixed wireless, and satellite technologies.

Source: CRTC data collection

Figure 5.3.5 Residential Internet access technology mix, 2008 v. 2012

Source: CRTC data collection

5.4 Data and private line market sector

Overview

The data and private line services are sold to business customers. Examples of data services include Ethernet and IP, as well as, legacy services such as X.25, ATM and Frame Relay. Examples of private line service are OC-3 and DS-1. Data and private line services are also provided to other TSPs, on a wholesale basis, for inclusion in their network in the provision of service to their retail customers or for resale purposes.

Canadian businesses were served by approximately 150 entities offering data and private line services in 2012. Of these, incumbent TSPs accounted for approximately 20%, and alternative TSPs, such as cable BDUs, utility telcos, and resellers, accounted for the remaining 80%.

This section presents revenue details generally over a five-year period to display the trends in the data and private line market sector. Performance and technology indicators, such as market share data and technology trends are also presented.

Data and private line sector at a glance

	2011	2012	% Growth
Revenues ($ billions)	4.5	4.7	4.1
Data	3.0	3.2	6.2
Private line	1.5	1.5	0.0
Data revenues as a percentage of total	66.7%	68.0%
Private line revenues as a percentage of total	33.3%	32.0%
New data protocols
Revenues ($ billions)	2.1	2.2	7.1
Percentage of total data protocol revenues	93.5%	95.6%
Data and private line revenue market share
Incumbent TSPs (excluding out-of-territory)	69%	65%
Forborne services
Percentage of data revenues from forborne data services	91%	91%
Percentage of private line revenues from forborne private line services	67%	69%
Number of forborne private line routes	5,108	5,394	5.6

Source: CRTC data collection

Data and private line market sector – Statistical information

a) Industry revenues

Table 5.4.1 Data and private line revenues ($ millions)

Data	2008	2009	2010	2011	2012	CAGR 2008-2012
Data protocols	1,890	2,020	2,055	2,209	2,313	5.2%
Percentage growth	6.9	6.8	1.8	7.5	4.7
Other	723	658	723	770	851	4.1%
Percentage growth	2.8	-9.0	9.8	6.6	10.4
Total data and other	2,614	2,678	2,778	2,979	3,164	4.9%
Percentage growth	5.7	2.5	3.7	7.2	6.2
Private line	1,722	1,636	1,536	1,488	1,488	-3.6%
Percentage growth	2.5	-5.0	-6.1	-3.1	0.0
Total data and private line	4,336	4,313	4,314	4,467	4,652	1.8%
Percentage growth	4.4	-0.5	0.0	3.5	4.1

• Data services are classified into one of three categories: (1) legacy data protocols such as X.25, ATM, and frame relay; (2) newer protocols such as Ethernet and IP-VPN, and other protocols including managed services where specific protocols cannot be separated; and (3) other services such as network management and networking equipment.

Source: CRTC data collection

Table 5.4.2 Data protocol revenues, by service category ($ millions)

New protocols	2008	2009	2010	2011	2012	CAGR 2008-2012
Retail
Ethernet	520.7	482.3	451.4	478.6	482.7	-1.9%
Percentage growth	6.6	-7.4	-6.4	6.0	0.9
IP	710.1	870.8	995.9	1,124.4	1,189.7	13.8%
Percentage growth	32.7	22.6	14.4	12.9	5.8
Other	77.5	126.4	118.9	125.9	154.0	18.7%
Percentage growth	-25.4	63.0	-5.9	5.7	22.3
Total retail	1,308.4	1,479.5	1,566.2	1,728.9	1,826.4	8.7%
Percentage growth	16.0	13.1	5.9	10.4	5.6
Wholesale
Ethernet	122.4	173.2	196.8	221.3	225.4	16.5%
Percentage growth	36.0	41.5	13.7	12.4	1.8
IP	17.4	11.8	41.7	68.8	98.5	54.2%
Percentage growth	54.6	-32.3	253.5	65.0	43.2
Other	37.5	35.1	35.0	45.4	61.3	13.2%
Percentage growth	-39.8	-6.4	-0.3	29.2	35.2
Total wholesale	177.4	220.1	273.6	335.4	385.2	21.4%
Percentage growth	8.4	24.1	24.3	22.6	14.8
Total new protocols	1,485.7	1,699.7	1,839.8	2,064.4	2,211.6	10.5%
Percentage growth	15.1	14.4	8.2	12.2	7.1
Legacy protocols
Retail	343.8	264.2	173.6	103.6	67.1	-33.5%
Percentage growth	-17.2	-23.2	-34.3	-40.3	-35.3
Wholesale	60.7	55.7	41.5	40.6	34.7	-13.0%
Percentage growth	-2.6	-8.3	-25.4	-2.2	-14.5
Total legacy	404.6	319.9	215.2	144.2	101.8	-29.2%
Percentage growth	-15.3	-20.9	-32.7	-33.0	-29.4
Total data protocols	1,890.3	2,019.5	2,055.0	2,208.6	2,313.4	5.2%
Percentage growth	6.9	6.8	1.8	7.5	4.7

Source: CRTC data collection

Table 5.4.3 Private line revenues, by service category ($ millions)

Private line	2008	2009	2010	2011	2012	CAGR 2008-2012
Retail	894	843	807	751	793	-2.9%
Percentage growth	-11.2	-5.7	-4.2	-7.0	5.6
Wholesale	828	793	729	737	695	-4.9%
Percentage growth	22.9	-4.3	-8.0	1.1	-5.7
Total private line	1,722	1,636	1,536	1,488	1,488	-3.6%
Percentage growth	2.5	-5.0	-6.1	-3.1	0.0

Source: CRTC data collection

b) Performance and technology indicators

Figure 5.4.1 Data and private line revenue market share, by type of TSP

Source: CRTC data collection

Figure 5.4.2 Data revenue market share, by type of TSP

Source: CRTC data collection

Table 5.4.4 Data protocol revenue market share, by service category (%)

	2008	2009	20101	20111	2012
New data
Incumbent TSPs (excluding out-of-territory)	53	55	59	55 #	55
Incumbent TSPs (out-of-territory)	19	19	17	18 #	16
Non-incumbent alternative TSPs	28	26	24	27	29
Legacy data
Incumbent TSPs (excluding out-of-territory)	60	59	62	68	66
Incumbent TSPs (out-of-territory)	13	12	7	6	6
Non-incumbent alternative TSPs	26	29	31	26	28
Total data protocols
Incumbent TSPs (excluding out-of-territory)	55	56	59	56 #	56
Incumbent TSPs (out-of-territory)	17	17	16	17 #	16
Non-incumbent alternative TSPs	28	27	25	26	29

1. Due to changes in company reporting in both 2010 and 2011, incumbent TSPs (out-of-territory) results are not consistent with previous years. In addition, Other Protocols were not separately reported for incumbent TSPs (out-of-territory) before 2010. This had less than a 2% impact on the results in 2010.

Source: CRTC data collection

Table 5.4.5 Private line – revenue market share (%)

	2008	2009	20101	20111	2012
Incumbent TSPs (excluding out-of-territory)	74	76	80	80 #	77
Incumbent TSPs (out-of-territory)	16	14	10	9 #	8
Non-incumbent alternative TSPs2	10	10	10	11	14

1. Due to changes in company reporting in both 2010 and 2011, incumbent TSPs (out-of-territory) results are not consistent with previous years.
2. Due to new reporting by non-incumbent alternative TSPs, 2012 results may not be comparable to previous years.

Source: CRTC data collection

5.5 Wireless market sector

Wireless networks cover approximately 20% of Canada’s geographic area and are available to 99% of Canadians. The advanced wireless network that supports handsets such as smartphones and turbo sticks is available to 99% of Canadians. The LTE network is available to approximately 72% of Canadians. Canadians’ expenditure on wireless services constitutes the largest component (51%) of their expenditure on telecommunications services.

Canadians are served by three large facilities-based national WSPs, a number of smaller regional facilities-based WSPs, and a small number of MVNOs.
A number of new facilities-based WSPs have entered the wireless market sector. Mobile services provided by these new WSPs are accessible to 58% of Canadians.

This section presents revenue and subscriber details, generally over a five-year period to display the trends in the sector. Performance and technology indicators, such as ARPU, penetration and market share data, as well as broadband and coverage data are also presented.

Wireless market sector at a glance

	2011	2012	% growth
Revenues ($ billions)	19.1	20.4	6.5
Number of subscribers (millions)	27.4	27.9	1.8
ARPU per month, excluding paging	$57.98	$60.71	4.7
ARPM, excluding paging	$0.10	$0.09	-8.5
Wireless capex as a percentage of total telecom capex	24%	26%
Average capex per user per month	$7.06	$7.56	7.2
Wireless availability, percent of population	99	99	nil
3G availability (percent of population)	99	99	nil
HSPA+ broadband availability (percent of population)	99	99	nil
LTE broadband availability (percent of population)	45	72	61.0
Wireless penetration (percent of households)	79.4	n/a
Wireless only penetration (percent of households)	12.8	n/a

Sources: CRTC data collection and Statistics Canada

Wireless sector – Statistical information

a) Revenue and subscriber data

Table 5.5.1 Wireless and paging revenues and number of subscribers

		2008	2009	2010	2011	2012	CAGR 2008-2012
Revenues ($ millions)	Wireless	15,940.3	16,804.0	17,931.2	19,056.3	20,316.6	6.3%
	Annual growth	10.5%	5.4%	6.7%	6.3%	6.6%
	Paging	96.1	89.2	71.9	67.1	50.2	-15.0%
	Annual growth	3.5%	-7.2%	-19.5%	-6.6%	-25.1%
	Total revenues	16,036.4	16,893.2	18,003.0	19,123.4	20,366.8	6.2%
	Annual growth	10.4%	5.3%	6.6%	6.2%	6.5%
Subscribers (thousands)	Wireless	22,092.5	23,811.9	25,825.4	27,387.2	27,888.0	6.0%
	Annual growth	9.0%	7.8%	8.5%	6.0%	1.8%
	Paging	319.3	253.6	241.3	219.0	187.4	-12.5%
	Annual growth	-18.2%	-20.6%	-4.8%	-9.3%	-14.4%
ARPU ($/month)	Wireless	60.1	58.8	57.9	58.0	60.7
	Annual growth	1.3%	-2.2%	-1.5%	0.2%	4.7%

Source: CRTC data collection

Figure 5.5.1 Wireless revenue and subscriber growth rates
(excluding paging)

Source: CRTC data collection

Table 5.5.2 Wireless and paging revenue components ($ millions)

		2008	2009	2010	2011	2012	CAGR 2008-2012
Basic voice		10,481.9	10,323.5	10,343.7	9,855.5	9,510.9	-2.4%
Annual growth		3.6%	-1.5%	0.2%	-4.7%	-3.5%
Long distance		1,224.0	1,204.9	1,276.5	1,289.5	1,257.8	0.7%
Annual growth		13.8%	-1.6%	5.9%	1.0%	-2.5%
Paging		96.1	89.2	71.9	67.1	50.2	-15.0%
Annual growth		3.5%	-7.2%	-19.5%	-6.6%	-25.1%
Terminal equipment and handheld devices		803.0	1,106.3	1,171.8	1,419.3	1,556.7	18.0%
Annual growth		14.8%	37.8%	5.9%	21.1%	9.7%
Data and other	Data	n.a	n/a	3,885.7	5,066.4	6,257.9	n/a
	Annual growth				30.4%	23.5%
	Roaming (Voice)	n.a	n/a	776.1	830.9	799.0	n/a
	Roaming (Data)	n.a	n/a	390.6	525.3	784.6	n/a
	Subtotal	n.a	n/a	1,166.7	1,356.2	1,583.6	n/a
	Annual growth				16.2%	16.8%
	Other	n.a	n/a	86.9	69.3	149.7	n/a
	Total data, roaming and other	3,431.4	4,169.2	5,139.3	6,491.9	7,991.2	23.5%
	Annual growth	35.2%	21.5%	23.3%	26.3%	23.1%
Total		16,036.4	16,893.2	18,003.0	19,123.4	20,366.8	6.2%
Annual growth		10.4%	5.3%	6.6%	6.2%	6.5%

Source: CRTC data collection

Table 5.5.3 Prepaid and post-paid wireless revenues (basic voice and long distance) ($ millions)

	2008	2009	2010	2011	2012	CAGR 2008-2012
Prepaid	912.9	846.4	851.5	777.2	664.3	-7.6%
Annual growth	-2.3%	-7.3%	0.6%	-8.7%	-14.5%
Post-paid	10,745.7	10,610.6	10,768.7	10,317.1	10,065.9	-1.6%
Annual growth	5.2%	-1.3%	1.5%	-4.2%	-2.4%
Total	11,658.6	11,456.9	11,620.2	11,094.3	10,730.2	-2.1%
Annual growth	4.6%	-1.7%	1.4%	-4.5%	-3.3%

Source: CRTC data collection

Table 5.5.4 Number of post-paid subscribers as a percentage of total wireless subscribers

	2008	2009	2010	2011	2012
Post-paid	78	79	79	78	81

Source: CRTC data collection

b) Capital expenditures and wholesale revenue data

Figure 5.5.2 Wireless Capex and ACEPU

• Globalive, Public Mobile and Data & Audio expenditures were excluded due to insufficient data.

Source: CRTC data collection

Figure 5.5.3 Wireless retail and wholesale revenues, 2012

Source: CRTC data collection

c) Performance and technology indicators

Figure 5.5.4 TSPs’ wireless subscriber market share

1. Other” includes MTS Allstream, SaskTel, and smaller WSPs.
2. “Bell Group” includes Bell Canada, Northwestel Mobility, Bell Mobility, Télébec, NorthernTel, Skyterra, Virgin Mobile, and Latitude Wireless.
3. “New entrants” refers to the new wireless entities that acquired spectrum in Industry Canada’s 2008 AWS spectrum auction.

Source: CRTC data collection

Figure 5.5.5 TSPs’ wireless revenue market share

1. “Other” includes MTS Allstream, SaskTel, and smaller WSPs
2. “Bell Group” includes Bell Canada, Northwestel Mobility, Bell Mobility, Télébec, NorthernTel, Skyterra, Virgin Mobile, and Latitude Wireless.
3. “New entrants” refers to the new wireless entities that acquired spectrum in Industry Canada’s 2008 AWS spectrum auction.

Source: CRTC data collection

Table 5.5.5 Wireless subscriber market share, by province, 2012 (%)

Province	Bell Group2	TCC	Rogers	New entrants3	Other1
British Columbia	18	40	39	3	0
Alberta	23	50	24	3	0
Saskatchewan	10	10	9	0	71
Manitoba	5	9	33	0	53
Ontario	28	20	44	6	1
Quebec	33	28	29	10	0
New Brunswick	58	23	19	0	0
Nova Scotia	54	29	16	0	0
Prince Edward Island	58	27	15	0	0
Newfoundland and Labrador	73	25	2	0	0
The North4	90	0	0	0	10

1. “Other” includes MTS Allstream, SaskTel, and smaller WSPs.
2. “Bell Group” includes Bell Canada, Northwestel Mobility, Bell Mobility, Télébec, NorthernTel, SkyTerra, Virgin, and Latitude Wireless.
3. “New entrants” refers to the new wireless entities that acquired spectrum in Industry Canada’s 2008 AWS spectrum auction.
4. The North includes Yukon, the Northwest Territories, and Nunavut

Source: CRTC data collection

Table 5.5.6 Advanced handheld devices, by province, 2012

Province	Number of advanced handheld devices	Percentage of total handheld devices
British Columbia	2,002,719	13
Alberta	2,066,054	14
Saskatchewan	734,314	5
Manitoba	730,018	5
Ontario	5,659,999	38
Quebec	2,884,597	19
New Brunswick	258,440	2
Nova Scotia	348,422	2
Prince Edward Island	48,210	0
Newfoundland and Labrador	187,908	1
The North1	4,660	0

1. The North includes Yukon, the Northwest Territories, and Nunavut.

Source: CRTC data collection

Table 5.5.7 Wireless ARPU, by province (excluding paging)

Province	2008	2009	2010	2011	2012
British Columbia	$63.53	$60.88	$60.45	$62.78	$63.56
Alberta	$75.26	$70.28	$69.58	$74.96	$73.50
Saskatchewan	$57.66	$58.11	$62.93	$57.14	$63.30
Manitoba	$57.05	$52.88	$54.51	$55.73	$59.31
Ontario	$60.61	$62.75	$58.72	$56.76	$61.87
Quebec	$50.45	$52.15	$49.98	$50.36	$51.95
New Brunswick	$50.00	$51.08	$52.03	$54.19	$55.32
Nova Scotia	$52.57	$52.70	$54.72	$56.34	$58.94
Prince Edward Island	$64.89	$56.18	$48.43	$52.33	$53.08
Newfoundland and Labrador	$47.43	$48.22	$50.45	$55.40	$59.69
The North1	n/a	n/a	$111.41	$97.10	$83.62

1. The North includes Yukon, the Northwest Territories, and Nunavut.

Source: CRTC data collection

Table 5.5.8 Wireless average monthly churn rates (percentage)

	2008	2009	2010	2011	2012
Bell Mobility	1.6	1.6	1.9	2.0	1.7
Rogers	1.5	1.4	1.5	1.8	1.8
TCC	1.6	1.6	1.6	1.7	1.5

• Churn rate is a measure of subscriber turnover, expressed as an average annual rate. It is derived by dividing the number of subscribers that have left by the total number of wireless subscribers.

Sources:   Companies’ annual reports and CRTC data collection

Figure 5.5.6 Mobile data-only plan1 revenues, subscribers, and monthly ARPU, by data plan capacity, 2012

ARPU per month ($)

Capacity	Less than 501 MB	Between 501 MB and 2 GB	Greater than 2 GB
2011	39	58	75
2012	41	48	77

1. Data-only plans include built-in and portable access devices such as hubs, sticks, dongles, laptops, etc.

Source: CRTC data collection

Figure 5.5.7 Total number of MMS and SMS messages

• The number of MMS and SMS messages includes both incoming and outgoing messages.
• Northwestel, NorthernTel, Télébec and Telus were unable to provide data details.

Source: CRTC data collection

Table 5.5.9 Mobile broadband subscribers

	2011	2012	% growth
Standard mobile broadband
Number of subscribers (millions)	12.0	13.0	8.3
Percentage of all subscribers	44%	47%
Dedicated mobile
Number of subscribers (millions)	1.2	1.3	8.3
Percentage of all subscribers	4%	5%
Total mobile broadband
Number of subscribers (millions)	13.2	14.3	8.3
Percentage of all subscribers	48%	52%

Source: CRTC data collection

Figure 5.5.8 Percent of mobile revenues, voice v. standard broadband v. dedicated broadband, 2012

1. “Standard mobile broadband” refers to subscribers who own smartphones, rocket hubs, or regular cell phones with a subscription to a data and voice plan. Standard mobile broadband includes BlackBerry (BB) plans (BB unlimited social networking, BB unlimited email, BB regular bucket-based data plans, and non-BB regular based data plans). Excluded are mobile phone plans with browsing only.
2. “Dedicated mobile broadband” refers to subscribers with subscriptions to dedicated data services over a mobile network. These subscriptions are purchased separately from voice services, either as a stand-alone service (modem/dongle) or as an add-on data package to voice services, which requires an additional subscription.

Source: CRTC data collection

d) Coverage / availability details

Source: CRTC data collection

Figure 5.5.9 Wireless coverage, penetration, and ARPU by province, 2012

Source: CRTC data collection

Table 5.5.10 Wireless coverage, penetration, and ARPU, by province, 2012

	Coverage (%)			Penetration rate (%)	ARPU ($/month)
	wireless	HSPA+	LTE
British Columbia	99.0	98.8	87.0	81.5	63.56
Alberta	99.8	99.8	82.0	98.2	73.50
Saskatchewan	99.3	97.8	37.8	78.8	63.30
Manitoba	98.4	97.5	61.1	74.1	59.31
Ontario	99.8	99.7	77.5	80.3	61.87
Quebec	99.3	98.9	70.1	66.8	51.95
New Brunswick	99.7	99.6	15.7	70.7	55.32
Nova Scotia	99.8	99.7	37.3	75.1	58.94
Prince Edward Island	99.9	99.9	0.0	71.9	53.08
Newfoundland and Labrador	96.4	96.0	30.0	76.8	59.69
The North	70.4	51.9	36.7	9.7	83.62
Canada	99.4	99.1	72.0	78.4	61.47

Source: CRTC data collection

Table 5.5.11 Percentage of population with access to one, two, three, or four or more facilities-based WSPs, by province, 2012

	Number of facilities-based wireless service providers
	none	1 only	2 only	3 only	4 or more
British Columbia	1%	2%	32%	6%	59%
Alberta	0%	1%	32%	11%	55%
Saskatchewan	1%	16%	75%	8%	0%
Manitoba	2%	2%	18%	78%	0%
Ontario	0%	1%	3%	33%	63%
Quebec	1%	4%	6%	8%	82%
New Brunswick	0%	4%	73%	22%	0%
Nova Scotia	0%	4%	53%	43%	0%
Prince Edward Island	0%	4%	96%	0%	0%
Newfoundland and Labrador	4%	39%	18%	40%	0%
The North1	30%	63%	7%	0%	0%
Canada	1%	3%	17%	22%	57%

1. The North includes Yukon, the Northwest Territories, and Nunavut.

Source: CRTC data collection

Figure 5.5.10 Established carriers’ coverage and penetration v. new entrants’ coverage and penetration

• ‘New entrants’ refers to the new wireless entities that acquired spectrum in Industry Canada’s 2008 AWS spectrum auction.

Source: CRTC data collection

Map 5.5.1 Wireless service availability, by number of facilities-based providers, 2012

Source: CRTC data collection

Map 5.5.2 Wireless HSPA+ service availability, by number of facilities-based providers, 2012

Source: CRTC data collection