The Canadian data/Internet access market grew by 6% in 2003 to $6.7 billion, according to the Convergence Consultin...
March 1, 2004
The Canadian data/Internet access market grew by 6% in 2003 to $6.7 billion, according to the Convergence Consulting Group’s annual look at the market. The company is projecting similar growth during the next two years.
Corporate sales represent approximately half the market (in terms of revenue) and saw approximately 4% growth in 2003. Carrier (wholesale) sales represent almost 15% of the market and saw growth decline by 12%.
The company forecasts that corporate sales will grow by 3% in both 2004 and 2005, and that wholesale revenue will decline in 2004 by 7% and by 5% in 2005.
Combined, growth by corporate/wholesale was essentially flat in 2003, down from almost 6% growth in 2002.
The main reasons for the decline were price discounting, less demand/market maturation, new entrants/increased competition, and DNA/price cap charges. These factors will also have impact going forward, the consulting firm said.
There were some bright spots however. Business DSL accounts and revenue grew well, as did IPVPN and LAN/Ethernet. These segments should continue to prosper over the next few years.
“Needless to say, Private Line and Legacy data/internet access were the big revenue decliners and will continue to be going forward,” the company said. “We are projecting revenue growth of 1% for the overall corporate/wholesale part of the market for 2004, and 1% again in 2005.”
Despite the difficult market, leaders Bell & partners (Aliant, MTS, SaskTel) followed by Telus maintained the same revenue market share in 2003 as they had in 2002.
Combined, leaders Bell/partners, Telus, Allstream, Shaw and Rogers represent approximately 75% of total market revenue.
A key bright spot was the residential Internet access market, which represented just over 35% of total market revenue at the end of 2003, grew by 20% in 2003 (Dial revenue growth was negative, but high-speed revenue growth was 29%).
The 101-page report features analysis of key Data/Internet access segments by revenue, growth rates, market leaders, market share, forecasts (further broken down by corporate, carrier/wholesale and residential segments) through 2005.
Further information is available at www.convergenceonline.com.