This year’s 700 MHz and next year’s 2500 MHz spectrum auctions will foster the growth of the Canadian wireless market, says a Pyramid Research report entitled, “Canada: Data Segment to Boom after LTE Spectrum Allocation”.
The market research company estimates the Canadian telecom industry will generate revenue of $46 billion this year, with the mobile segment contributing the most. Bell and Rogers are named the top two carriers providing fixed, mobile, Internet and pay-TV services, which will account for more than half (52.1%) of overall service revenue this year.
As the report highlights, Pyramid Research forecasts an overall 2.5% CAGR growth in overall service revenue within the next five years.
The fixed/mobile revenue split will be inclined toward mobile by 2019. Mobile revenue will increase as users substitute mobile voice services in place of traditional fixed voice. Additionally, increasing demand for mobile data services will drive mobile market revenue past fixed market revenue.
By 2019, the dominant technology will be 4G LTE, which will account for 85.3% of mobile subscriptions, says Pyramid Research.