Wireless Telecommunications Carriers in Canada Industry Market Research Report Now Available from IBISWorld
New York, NY (PRWEB) January 02, 2015 -- The Wireless Telecommunications Carriers industry performed well over the past five years as wireless coverage expanded and a greater number of Canadians 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 2.9% to $21.1 billion. Revenue is expected to grow 2.0% in 2014 alone as carriers continue to expand coverage of 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 with the three largest players controlling an estimated 95.6% of the market.” Although that dynamic was expected to shift as the government set aside spectrum licences for new entrants to encourage competition during the 2008 auction of advanced wireless services (AWS) spectrum licences, smaller players like Wind, Mobilicity and Public Mobile have been struggling to sell their purchased licences. While these restrictions were created to increase Wireless Telecommunications Carriers industry competition and decrease concentration, they may have the opposite effect as smaller players hesitate to purchase licences that may be difficult to sell in the future.
While smaller players collectively account for less than 5.0% of the market, they have pressured overall margins by offering attractive promotional offers to lure subscribers away from incumbent carriers. The subsidizing of increasing smartphone activation has pressured profit; while 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 to greater subsidies paid to make devices more affordable to consumers. Still, average industry profit is estimated to account for 27.5% of revenue in 2014.
Over the five years to 2019, the number of mobile subscribers is forecast to increase. “An increasing number of Canadian households have disconnected their wireline service, relying entirely on their mobile devices for telephone service,” says Kahn. Smartphone and tablet penetration is expected to continue increasing rapidly, encouraged by increasing coverage of high-speed 4G LTE networks.
For more information, visit IBISWorld’s Wireless Telecommunications Carriers in Canada industry report page.
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IBISWorld industry Report Key Topics
Companies in the Wireless Telecommunications Carrier 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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