The Canadian Data/Internet access market grew by 5% in 2005 to $7.2 billion, according to the Convergence Consultin...
March 3, 2006
The Canadian Data/Internet access market grew by 5% in 2005 to $7.2 billion, according to the Convergence Consulting Group’s annual survey.
The market consists 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 research firm expects it to grow again by 5% in 2006 to approximately $7.5 billion and 5.5% in 2007 to $7.9 billion).
Market leaders Bell/Aliant, Telus, Rogers, MTS Allstream and Shaw represent approximately 76% of total market revenue.
In terms of revenue, corporate sales represent 47% of the market and saw approximately 2% growth in 2005.
Carrier (wholesale) sales represent 11% of the market and saw 7% growth in 2005.
The report forecasts that corporate sales will grow by 3% in 2006 and 2007, and that wholesale revenue will decline in 2006 and 2007 by -6%.
Combined, growth by corporate/wholesale was flat in 2005, and we forecast 1% and 2% growth in 2006 and 2007 respectively.
There were some bright spots however. Business DSL and Cable accounts and revenue grew well, so did IPVPN and LAN/Ethernet; these segments should continue to grow solidly over the next few years.
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.
Residential Internet access market revenue grew by 13% in 2005 (Dial revenue growth was negative, but high-speed revenue growth was 19% in 2004).
For 2006 and 2007, the firm is projecting that total Residential Internet access market revenue will grow by 11%.
Further information on the report is available at www.convergenceonline.com.