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NBI/Michael Sone issues report on changing face of telecom services in Canada

NBI/Michael Sone Associates today announced the completion of the 2005 Edition of the Canadian Local Telecom & VoIP...


December 12, 2005  


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NBI/Michael Sone Associates today announced the completion of the 2005 Edition of the Canadian Local Telecom & VoIP Services Market study.

The study indicates that the wireline local access market has become a major competitive battleground in Canada’s telecommunications industry with businesses and consumers as the clear beneficiaries.

“The picture that has emerged is one of a fluid and dynamic market where incumbent telephone companies are being increasingly and seriously challenged both by cable operators as well as newer, smaller companies,” said Michael Sone, president of the research and consulting firm.

“As a result, what was the last bastion of phone company monopoly services provisioning is no longer. While meaningful competition took several years to become established, the advent of IP-based technologies and their inherent low barriers to entry have significantly altered the landscape of Canada’s wireline local access market.”

The report concludes that incumbent telephone company share of wireline local access lines in the residential sector is forecast to fall to 73.1% by 2008, which represents an average annual loss of 5% from 2003.

In the business sector, incumbent share is forecast to decline to 75.5% by 2008, with competitors almost doubling over the same five-year period.

In addition, business VoIP lines offered to all sizes of businesses are expected to increase from 377,000 in 2005 to over 1 million by 2008, representing approximately 15% of the business wireline local access lines.