Canada - Telecommunication Services: Large market with fast acceptance of growing technologies (Strategy, Performance and Risk Analysis)
There are exciting possibilities for telecommunication companies in Canada as 5G networks begin to launch. Huawei Canada is planning to invest US$500 million into establishing a 5G network in Ontario, with their focus mainly on advanced communications research initiatives, including faster Internet speeds and related technologies such as cloud computing, data analytics and mobile security. They have already started 5G trial runs for the next generation of cellular phone systems. This technology has a higher bandwidth and speeds of up to 29.3 gigabits per second (Gbps), much faster than the current fourth generation speed of 1Gbps. This technology will help Canada create a platform combining mobile apps, bandwidth and cloud technology.
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Broadband services to get a cash injection
Broadband penetration offers a lot of growth opportunities for the country. It has increased from 34.4% in 2012 to 36.2% in 2016 and is expected to increase further to 38.9% by 2021. The governments of Ontario and Canada plan to invest US$180 million to help bring ultra-high speed internet to homes and businesses in southwestern Ontario. Bell Canada enterprises (BCE) also spent US$854 million in 2016 on fiber for home broadband connections in Montreal, US$1.14 billion in Toronto and US$225 million in Quebec in 2015 for fiber installation.Canada’s telecommunications market proves to be robust
The decline in churn rate indicates higher customer retention in the market. Companies can retain their customers with rapid issue resolution and quality customer service. Canada reported a very low churn rate of 19.7% in 2016 in comparison to the North American average churn rate of 26.4% during the same period. It’s peer countries also showed comparatively high churn rate with Mexico at 65.9% and the US at 26.9%. The decline is attributed to value added services offered by operators, along with adoption of the latest technology.Leading companies invest heavily in technological advancement
The focus of operators towards infrastructure development has driven the telecom market in Canada.
In 2016, Bell invested US$1 billion in 2016 to extend the availability of its Gigabit Fiber Internet service to around 3 million homes and businesses in Ontario, Quebec and Atlantic Canada, up from around 2.2 million at the end of 2015.
Also, in 2016, Telus invested US$260million into fiber rollout to Quebec residences and businesses in both rural and urban communities.
In 2017, CRTC declared broadband internet access a basic service which will boost internet service and speeds in rural and isolated areas.