Canadian Communications Services Forecast, 2021–2025: Telecom Still Inside Out from COVID-19

Canadian Communications Services Forecast, 2021–2025: Telecom Still Inside Out from COVID-19

This IDC study presents IDC Canada's five-year forecasts for communications services spending by market and customer segments, company size, industry sector, and region for 2021–2025 based on the annual update of IDC Canada's custom Communications Market Model and replaces our previous comprehensive spring and fall 2020 forecasts (see Lawrence Surtees, Meng Cong, and Manish Nargas, Canadian Communications Services Forecast, 2020–2024: COVID-19 Turns Telecom Inside Out, IDC #CA45063520, May 2020). This five-year forecast document is based on our current assumptions of the COVID-19 pandemic in 2021.However, the course of the COVID-19 pandemic is still uncertain and continues to produce economic impacts on a scale not seen since the Great Depression as well as introducing many uncertainties and factors that change almost weekly. Clients are cautioned that this forecast document, unlike previous years, is based on a temporary snapshot of macroeconomic forecasts and conditionsthat existed in mid-to-late April. Readers are urged to visit IDC's COVID-19 micro-website (at for frequent updates on the impact of COVID-19 on the global and Canadian ICT sectors.Readers should note the adjustments made in this study and rely on this current forecast for initial 2021 planning purposes. This study addresses the following questions:How does current and projected spending on Canadian communication services differ by: market segment, customer segment, company size, region, and industry vertical sector?Which customer segments, company size, industry, and regional segments of the Canadian communications services market are poised for growth, and which are the best opportunities for communication service providers (SPs) over the new five-year forecast period?"The duration of the COVID-19 pandemic remains unknown, but experience in 2020 shows the communications service sector remains better insulated than most to weather the uncertainty," says study coauthor Lawrence Surtees, vice president of Communications Research and principal analyst at IDC Canada Ltd. "Continued investment and deployment of next-generation network technologies are key to coping with the triple challenges in 2021 of mitigating COVID-related revenue loss, meeting unparalleled network demand, and pursuing potential new revenue streams in a forthcoming 'new normal.'"

Please Note: Extended description available upon request.

IDC Market Forecast Figure
Executive Summary
Advice for Technology Suppliers
Market Forecast
Canadian Communications Services Market in 2020
Comparison of Year-End Results with Previous IDC Forecast
Communications Service Market Segment Trends
Wireless Remains Key to Competitive Position
Video Segment Declining
Enterprise TV Revenue Not a Panacea
Telecom Service Customer Segment Trends
Enterprise Sector Trends
Regional Trends
Communications Service Sector Forecast, 2021–2025
Impact of the COVID-19 Pandemic
Mutated Variants of Concern Add to Uncertainty
Communications Revenue Forecast, 2021–2025
Local Wireline
Circuit Switch Decline
VoIP, Cable Telephony, and SIP Trunk
SIP Trunk and UCCaaS
Long Distance
Enterprise Over the Top: Cloud Computing and Datacenters
Multi-Access Edge Computing
Wireless Service Revenue Hit by COVID-19 Restrictions
Customer Segment Forecast
Consumer (Home) Segment
Enterprise Market
Industry Verticals Forecast
Regional Forecast
Market Context
Drivers and Inhibitors
Wireline Voice Service
Increased Toll-Free Long Distance Use and Conferencing
Demographics and Mobile Workforce
Mobile Substitution
SIP Trunks
Internet and Video
Fibre-Optic Rollouts Accelerate
Gigabit Internet and Increasing Data Needs
National Broadband Strategy
Wireless Internet Substitution and 5G Wireless
Over-the-Top Video
Wireless Service
Substitution Gains Traction
Next-Generation 5G Wireless Broadband with SDN and NFV
Wireless Voice Declines Continue to Pressure ARPU
5G Wireless Spectrum Allocation Lags
Federal Wireless Price Policy
Data (WAN) Services
Fibre-Optic Wavelength Network Proliferation
Enterprise Over the Top: SD-WAN Looms to Cannibalize MPLS IP VPN Revenue
Significant Market Developments
Changes from Prior Forecast
Market Definition
Communications Taxonomy and Service Definitions
Local TDM and Wireline
VoIP, Cable Telephony, and SIP Trunk
SIP Trunk
Long Distance
Wireless Subscriptions and Subscribers
Wireless Data Segmentation
Wireless Wholesale
Video Services
Industry Sector Definitions
Financial Services
Public Sector
Communications and Media
Other Industries
Telecommunications Wholesale
Company Size Definitions
Region Definitions
SIP Trunk Forecast
Note on SIP Terms
Difficulty Reconciling Forecasts with CRTC Market Data
Related Research
Further Research

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook
Cookie Settings