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Data/Internet access market to grow by 5% this year and next

The Canadian data/Internet access market grew by 5% in 2004 to $6.95 billion, according to The Convergence Consulting Group. The overall market is made up of corporate data/Internet access (sales to b...


April 1, 2005  


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The Canadian data/Internet access market grew by 5% in 2004 to $6.95 billion, according to The Convergence Consulting Group. The overall market is made up of corporate data/Internet access (sales to business) and carrier (sales to telcos, ISPs, i.e. wholesale) data/internet access as well as residential internet access.

The Toronto consulting firm is forecasting that the market will again grow by 5% in 2005 and 2006 and be valued at $7.3 billion and $7.65 billion respectively.

The firm’s seventh annual study also found that:

* Market leaders Bell/Aliant, Telus, MTS Allstream, Shaw and Rogers represent approximately 74% of total market revenue.

* Corporate sales, which represent 48% of the market in terms of revenue, experienced a 2% growth in 2004, while carrier wholesale sales, which represent 13% of the market, declined by 8%.

* Corporate sales will grow by 2.5% in 2005 and 3% in 2006 and wholesale revenue will decline by 5% this year and next.

* Combined, growth by corporate/wholesale declined by 1% last year, and

* Private Line, Frame Relay, and legacy data/internet access were the big revenue decliners and will continue to be going forward as providers move increasingly to IP.

“There were some bright spots however,” said Brahm Eiley, president of the Toronto consulting firm. “Business DSL and cable accounts and revenue grew well, as did IP VPN and LAN/Ethernet. These segments should continue to grow solidly over the next few years.”

Another hot spot was the residential Internet access market. Revenue grew by 14% last year and the number of high-speed subscribers increased by 900,000.