Canada Telecommunications Report Q1 2015

BMI Research
December 31, 2014
102 Pages - SKU: BMI5432495
Countries covered: Canada

Canada Telecommunications Report Q1 2015

BMI View: The exit of VimpelCom represents a bearish signal for the mobile market, which has beenunable to support new entrants to challenge the established three operators. The regulator has also blockedattempts by Rogers, Bell Wireless and Telus to acquire the smaller players in the market such as Wind andMobilicity, resulting in the new entrants struggling to remain afloat. It's unclear what strategy the newowners take but it could become a market consolidator and a tie up with Videotron would be mutuallybeneficial and create a strong fourth player. With some of the highest ARPUs in the world, a low coststrategy would have some success in attracting subscribers. However, the Canadian market ispredominantly postpaid and 3G/4G focused, with customers willing to pay higher rates for better quality,speed and coverage.

Key Data

The first half of 2014 saw highly variable subscriber growth among the leading mobile operators, withnet losses being recorded by several players. Wind Mobile was the outperformer, although itsachievements remained modest and it remained only a minor player on the market after five years.



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