REPORT

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 Associates� 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 customers� 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.