CANADIAN DATA COMMUNICATIONS SERVICES MARKET REPORT


2011 EDITION

NBI/Michael Sone Associates
193 Church Street
Toronto, Ontario
M5B 1Y7
Telephone 416-360-0424
e-mail msone@nbicanada.com



July, 2011




Table of Contents

Section Page
Table of Contents iii
List of Exhibits iv
About This Report vi
1.0       Executive Summary 1
2.0      Market Overview & Analysis 4
     2.1     Overall Data Market in 2010 4
     2.2     Market Trends to 2013 6
          2.2.1      Legacy Services 7
          2.2.2      Advanced Services 7
     2.3      Company Data Revenues 10
     2.4      Private Line Market 12
     2.5      Frame Relay Market 14
     2.6      IP-VPN Market 16
     2.6      DWDM Market 18
     2.7      LAN Market 20
     2.8      Network Management Services Market 22
3.0      Company Profiles 25
     3.1      AT&T Global Services Canada 25
     3.2      Bell Aliant 30
     3.3      Bell Canada 33
     3.4      Bell in the West 40
     3.5      BT Canada 42
     3.6      Cogeco Data Services 48
     3.7      Hydro One Telecom 52
     3.8      MTS Allstream 56
     3.9      Rogers Business Solutions 65
     3.10      TELUS 71
     3.11      TELUS in the East 77
     3.12      Verizon Business 79
 




List of Figures and Exhibits

Figure/Exhibit     Page
Exhibit 1 Canadian Data Communications Services Market, 2009-2013 ($M) 3
Exhibit 2 Canadian Data Communications Services Market, by Product,
          2009 & 2010 ($M)
5
Exhibit 3 Market Size, 2009-2013 ($M) 6
Exhibit 4 Legacy and Advanced Services Market Trends, 2009-2013 6
Exhibit 5 Canadian Data Communications Services Market, by Product,
          2011 to 2013 ($M)
9
Exhibit 6 Compounded Annual Growth Rate, by Product 2010 to 2013 9
Exhibit 7 Canadian Data Communications Services Market Share, 2010 10
Exhibit 8 Canadian Data Communications Services Market Share, 2011 10
Exhibit 9 Canadian Data Communications Revenues, by Company, by Product, 2010 11
Exhibit 10 Canadian Data Communications Revenues, by Company, by Product, 2011 11
Exhibit 11 Canadian Private Line Market Size & Shares, 2010 13
Exhibit 12 Canadian Private Line Market Size & Shares, 2011 13
Exhibit 13 Canadian Frame Relay Market Size & Shares, 2010 15
Exhibit 14 Canadian Frame Relay Market Size & Shares, 2011 15
Exhibit 15 Canadian IP-VPN Services Size & Shares, 2010 17
Exhibit 16 Canadian IP-VPN Services Size & Shares, 2011 17
Exhibit 17 Canadian DWDM Market Size & Shares, 2010 19
Exhibit 18 Canadian DWDM Market Size & Shares, 2011 19
Exhibit 19 Canadian LAN Market Size & Shares, 2010 21
Exhibit 20 Canadian LAN Market Size & Shares, 2011 21
Exhibit 21 Canadian Network Management Services Market Size & Shares, 2010 23
Exhibit 22 Canadian Network Management Services Market Size & Shares, 2011 23
Exhibit 23 AT&T Global Services Data Revenues, by Product, 2010 29
Exhibit 24 AT&T Global Services Data Revenues, by Product, 2011 29
Exhibit 25 Bell Aliant Data Revenues, By Product, 2010 32
Exhibit 26 Bell Aliant Data Revenues, By Product, 2011 32
Exhibit 27 Growth of Bell Data Services by Segment, 2010 & 2011 34
Exhibit 28 Bell Canada Data Revenues, by Product, 2010 39
Exhibit 29 Bell Canada Data Revenues, by Product, 2011 39
Exhibit 30 Bell in the West Data Revenues, By Product, 2010 41
Exhibit 31 Bell in the West Data Revenues, By Product, 2011 41
Exhibit 32 BT Canada Data Revenues by Product, 2010 46
Exhibit 33 BT Canada Data Revenues, by Product, 2011 47
Exhibit 34 Cogeco Business Services Data Revenues by Product, 2010 51
Exhibit 35 Cogeco Business Services Data Revenues, by Product, 2011 51
Exhibit 36 Hydro One Telecom Data Revenues, by Product, 2010 55
Exhibit 37 Hydro One Telecom Data Revenues, by Product, 2011 55
Exhibit 38 MTS Allstream Data Revenues, by Product, 2010 64
Exhibit 39 MTS Allstream Data Revenues, by Product, 2011 64
Exhibit 40 RBS Data Revenues, By Product, 2010 69
Exhibit 41 RBS Data Revenues, By Product, 2011 70
Exhibit 42 TELUS B.C. & Alta Data Revenues, By Product, 2010 76
Exhibit 43 TELUS B.C. & Alta Data Revenues, By Product, 2011 76
Exhibit 44 TELUS East Data Revenues, By Product, 2010 78
Exhibit 45 TELUS East Data Revenues, By Product, 2011 78
Exhibit 46 Verizon Business Data Revenues by Product, 2010 83
Exhibit 47 Verizon Business Data Revenues, by Product, 2011 83
   




About This Report

At over 80 pages and examining the period 2009-2013, NBI/Michael Sone Associatesí Canadian Data Communications Services Market Report, 2011 Edition is the most comprehensive study published to date on the Data Communications Services Market in Canada. This report is the culmination of numerous interviews with industry participants over a period of several months. The report is buttressed by 47 Exhibits with extensive coverage of revenues, market shares and growth forecasts by company and service. It presupposes some telecom familiarity and attempts to ensure clarity by including definitions where necessary. Included within the report are marketing and technical information pertaining to the business of carrying data within and between customersí facilities.

Services based on ATM or X.25 technologies are not included in the company profiles or in the any of the market-wide summary exhibits as these legacy services are either defunct or attracting no new customers, while networks of existing customers are no longer expanding.

Section 1 contains an Executive Summary that presents an overview of the entire Canadian Data Communications Services Market. Section 2 offers a detailed analysis of the industry, discussing technology & market trends and examines size, share and growth of major components including Frame Relay, Private Line, IP-VPN, LAN, DWDM and Network Management Services markets. Section 3 provides comprehensive profiles of 12 significant participants and delves into the areas of product development, competitive positioning, marketing and sales strategy, technology and future plans. Each profile includes revenue quantification segmented by service.

A major challenge in compiling this report was ensuring that the definition used for data revenues remained consistent across all of the companies profiled, most of which have varying service mixes included as part of their reported data revenues. To the extent possible, estimates of company revenues include those from commercial data communications services used to provide connectivity between sites as well as revenues from management of those services and the networks over which they are provided. The report does not include revenues from consumer services, Internet access, hosting, business process outsourcing, professional services or the sale/rental of data communications equipment.