CANADIAN MOBILE WIRELESS
COMMUNICATIONS SERVICES
MARKET REPORT

THE CONTENTS OF THIS REPORT ARE THE INTELLECTUAL PROPERTY OF NBI/MICHAEL SONE ASSOCIATES INC. AND, AS SUCH, ARE PROTECTED BY CANADIAN COPYRIGHT LAW. REPRODUCTION OF THIS DOCUMENT, IN WHOLE OR IN PART, BY ANY MEANS AND FOR ANY PURPOSE (INTERNAL OR EXTERNAL TO THE BUYER'S COMPANY) WITHOUT THE PRIOR PERMISSION OF THE PUBLISHER IS A VIOLATION OF CANADIAN AND INTERNATIONAL COPYRIGHT LAWS.

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     8.1 Handset Rental 

The report examines the cellular, wireless messaging and data markets in Canada, its evolution toward the wireless Internet, the services currently offered and their probable future direction. Of particular importance is the role played by two-way messaging devices and digital cellular handsets in popularizing the increased mobility of Internet access. This phenomenon is examined through a detailed description and discussion of the services and technologies that have made this possible.

The first section comprises an executive summary that offers the reader a quick study on the market and all the relevant issues and is followed by a discussion the convergence of voice and data. Next is an overview and detailed profiles of the wireless service providers. Particular emphasis is placed on recent developments in the marketplace and the effects of different airtime plans, pre-paid packages, value-added services, marketing programmes and distribution channels on revenues, subscriber growth, churn, usage patterns, acquisition costs and capital spending programmes. The next section examines the concept of resale and discusses the current players in this market.

The second half of the report opens with a section that deals with the various types of first generation mobile data applications, networks and devices along with their relevance to today's market. The limited success of two-way paging introduces second-generation messaging services and describes the services currently available. This is followed by a review of mobile Internet services that are available now and planned for the near and more distant future, including sections that offer detailed discussions on SMS and mobile browsers. The final part of the report offers the reader NBI/Michael Sone Associates' view of the future of the wireless mobile Internet, updates on the relevant technologies and is rounded out with a description of some additional services.

Eighteen exhibits illustrate subscriber data by service provider including projections to 2005 for customer and revenue growth, provincial, service type and technology segmentation, penetration rates and distribution.

Please watch for our upcoming Canadian Mobile Wireless Communications Equipment Market Report, 2002 Edition.

As always, NBI/Michael Sone Associates welcomes comments on this report and suggestions for future editions. Please call us anytime at (416) 360-0424 or e-mail us at msone@nbicanada.com.