New Fixed Networks market report from Business Monitor International: "Canada Telecommunications Report Q4 2012"
Boston, MA -- (SBWIRE) -- 01/04/2013 -- BMI View: Mobile subscriber growth in Canada is steadily slowing down although the market is still a distance away from 100% penetration rate. With increasing subscriber acquisition cost, especially given that a portion of untapped consumers are in rural regions, operators are instead turning their attention to transitioning subscribers to postpaid subscriptions or more expensive mobile data plans. This, in turn, also has a negative impact on fixed services, namely traditional fixed voice and broadband.
- Although mobile growth rebounded in Q212, the market is still expected to expand at a slower pace compared with 2011.
- The relatively underdeveloped 3G phone market is forecast to grow by an average of 25% between 2012 and 2016 to 14.383mn.
- The broadband sector is expected to be led by mobile technologies in light of operators' expanding network coverage and marketing efforts. We envisage 35.555mn broadband subscribers in 2016.
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Key Trends & Developments
Canada's Globalive (Wind) has submitted a filing to the CRTC, the country's telecoms regulator, accusing Telus of exceeding foreign ownership rules for telecommunications companies operating in the country. Foreign ownership cannot exceed 33.3% of shares in operators under Canadian law, and Wind has accused Telus of having around 48% foreign ownership. Although Telus contests this, BMI believes the move may help encourage greater transparency in shareholder structure, which would benefit the market.
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, the operator will offer unlimited and pay-as-you-go plans and target major urban centres, such as Vancouver, Toronto and Montreal.
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