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Wireless Telecommunications Carriers in Canada Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Feb 20, 2014, 10:00 ET

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Increased use of higher-priced smartphones has boosted revenue but pressured profit.

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New York, NY (PRWEB) February 20, 2014 -- The Wireless Telecommunications Carriers industry has performed well over the past five years as wireless coverage has expanded and a greater number of Canadians have adopted smartphones and tablets, boosting demand for high-margin mobile broadband services. An increasing number of Canadian households have wireless telephone connections only; consequently, over this period, revenue is expected to expand at an annualized rate of 3.4% to $22.4 billion. Revenue is expected to grow an additional 3.8% in 2014 alone as carriers continue to expand the coverage of their fourth generation (4G), long-term evolution (LTE) networks and more consumers upgrade to LTE-ready smartphones.

According to IBISWorld Industry Analyst Sarah Kahn, “The industry is highly concentrated; however, that dynamic has slowly started to shift, following Industry Canada's 2008 auction of advanced wireless services (AWS) spectrum licences.” To stimulate competition, spectrum was set aside for new participants. Notable new industry participants that acquired spectrum in the auction include Wind, Mobilicity, Public Mobile and Quebecor. As a result of the auction, the number of industry operators has increased at an estimated annualized rate of 0.7% over the past five years.

“While these new players still only collectively account for a small portion of the market, they have pressured overall margins by offering attractive promotional offers to lure subscribers away from incumbent carriers,” says Kahn. The subsidizing of increasing smartphone activation has pressured profit; while an increasing use of smartphones aids carriers in the long run (smartphone users typically have bills twice those of voice-only subscribers), in the short term it translates into greater subsidies paid to make the devices more affordable to consumers.

Over the five years to 2019, revenue is forecast to grow; as 4G coverage increases, the number of mobile subscribers is forecast to increase as well. Some of the industry's smaller players are expected to increase their budding operations and become formidable opponents to industry incumbents in certain regions. However, other less successful companies will likely be acquired or exit the industry, heightening competition in a market-nearing saturation.

For more information, visit IBISWorld’s Wireless Telecommunications Carriers in Canada industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.

Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.

IBISWorld industry Report Key Topics

The Wireless Telecommunications Carriers in Canada industry primarily provide wireless telecommunications services to mobile devices over switching and transmission facilities they own and operate. Operators that provide service through a combination of owned and leased facilities are also included in this industry. Industry operators primarily generate revenue through prepaid voice telephony services, postpaid voice telephony services, data services and equipment sales.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 310-866-5042, [email protected]

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