CANADIAN LOCAL TELECOM SERVICES MARKET REPORT
|
1999 EDITION |
|
For information on obtaining |
|
|
Table Of Contents
| Section | Page |
| About This Report | vi |
| 1.0 Introduction | 1 |
| 2.0 A Definition of Local Services | 3 |
| 3.0 The Local Services Market Sized | 6 |
 3.1 Clarification and
Definition |
6 |
| 3.2 Overview |
7 |
| 3.3 ILEC and CLEC Specifics |
7 |
| 3.4 Growth Forecast |
8 |
| 3.5 Lines and Revenues by
Market Segment |
9 |
| 4.0 The Regulatory Environment | 17 |
| 4.1 The Groundwork |
17 |
| 4.2 Telecom Decisions CRTC
97-8 and 97-9 – The Landmarks |
17 |
| 4.2.1 97-8: Local Competition |
17 |
| 4.2.2 97-9: Price Cap Regulation and Related Issues |
19 |
| 4.3 The CISC Process |
19 |
| 4.4 Lingering Concerns |
20 |
| 5.0 The Options and Economics of Competitive Local Services | 23 |
| 5.1 Resale |
23 |
| 5.2 Overwiring |
24 |
| 5.3 Unbundled Local
Loops |
24 |
| 5.4 Wireless |
26 |
| 5.4.1 Point-to-multipoint Wireless |
27 |
| 5.4.2 Point-to-point Wireless |
27 |
| 5.5 Hybrid Fibre Coax (HFC) |
28 |
| 5.6 Internet Protocol (IP)
Telephony |
29 |
| 5.7 The Investment |
29 |
| 6.0 Marketing Local Services in a Competitive Environment | 31 |
| 6.1 The Public’s
Perception of Competitive Local Services |
31 |
| 6.2 Approach to Market
Depends on the Starting Point |
31 |
| 6.3 Products |
34 |
| 6.4 Pricing |
35 |
| 6.5 Customer Service |
36 |
| 6.6 Bundling – A Panacea
or Just Another Pricing Plan? |
36 |
| 7.0 Corporate Profiles | 39 |
| 7.1 The National Networks |
40 |
| 7.1.1 AT&T Canada |
43 |
| 7.1.2 TELUS: The ILEC and the CLEC |
50 |
| 7.1.2.1
TELUS – The ILEC |
52 |
| 7.1.2.2
TELUS – The CLEC |
59 |
| 7.1.3 Bell Canada and its Extended Family |
62 |
| 7.1.3.1
Bell Canada |
66 |
| 7.1.3.2
Bell Nexxia |
75 |
| 7.1.3.3
Aliant |
77 |
| 7.1.3.4
MTS |
82 |
| 7.1.3.5
SaskTel |
87 |
| 7.1.3.6
Intrigna |
92 |
| 7.1.4 Sprint Canada |
95 |
| 7.2
The Start-ups |
102 |
| 7.2.1 C1 Communications |
103 |
| 7.2.2 Cannect Communications |
106 |
| 7.2.3 Combined Telecom Inc.
(CTI) |
109 |
| 7.2.4 Futureway
Communications |
112 |
| 7.2.5 Gateway Telephone |
115 |
| 7.2.6 GT Group Telecom
Services |
118 |
| 7.2.7 ISP Telecom |
121 |
| 7.2.8 Maskatel |
124 |
| 7.2.9 Navitar Communications |
126 |
| 7.2.10 Novus Telecom |
128 |
| 7.2.11 Optel Communications |
131 |
| 7.2.12 PUC of the City of
Brockville |
134 |
| 7.2.13 Sun Rivers Development |
138 |
| 7.2.14 Vancouver Telephone
Company (VTC Canada) |
140 |
| 7.2.15 Wispra Tel |
142 |
| 7.2.16 Briefly Noted |
145 |
| 7.3 The Cable Guys |
148 |
| 7.3.1 Cogeco Cable Systems |
152 |
| 7.3.2 EastLink |
154 |
| 7.3.3 Regional Cablesystems |
156 |
| 7.3.4 Rogers Cablesystems |
158 |
| 7.3.5 Shaw Cablesystems |
161 |
| 7.3.6 Vid?tron
Communications |
163 |
 |
List Of Exhibits And Figures
| Exhibit | Page | |
| 1 | Local Access Lines by Province (as of December 31, 1999) |
10 |
| 2 | Local Access Lines by City (CMA) (as of December 31, 1998) |
10 |
| 3 | ILEC Local Access Lines (1998 – 2003) | 11 |
| 4 | Lines Serving ILEC Customers (1998 – 2003) | 11 |
| 5 | Total ILEC Local Services Revenue (1998 – 2003) | 11 |
| 6 | CLEC Share of Total Local Access Lines (1998 – 2003) |
12 |
| 7 | CLEC Share of Total Local Services Revenue (1998 – 2003) |
12 |
| 8 | Summary of CLEC Lines and Revenue (1998 – 2000) | 13 |
| 9 | Line Share for ILECs and CLECs by Residential and Business Segments (1998 – 2003) | 14 |
| 10 | Revenue Share for ILECs and CLECs by Residential and Business Segments (1998 – 2003) | 14 |
| 11 | Monthly Rates for Unbundled Loops | 25 |
| 12 | TELUS and Bell Canada: Potential Gains and Losses | 41 |
| 13 | AT&T Canada Corp. Results and Forecast (1998 – 2000) |
49 |
| 14A | TELUS (ILEC) Results (1998) | 56 |
| 14B | TELUS (ILEC) Results and Forecast (1998 – 2000) | 57 |
| 15 | TELUS (ILEC) Optional Feature Penetration (1998 – 2000) |
58 |
| 16 | The Reach of the Bell Canada Family | 62 |
| 17 | The BCE Empire – Where Growth is Occurring | 63 |
| 18 | Bell Canada, Ameritech and SBC Compared | 64 |
| 19 | Bell Canada Results and Forecast (1998 – 2000) | 73 |
| 20 | Bell Canada Optional Feature Penetration (1998 – 2000) |
74 |
| 21A | Aliant Results (1998) | 79 |
| 21B | Aliant Results and Forecast (1998 – 2000) | 80 |
| 22 | Aliant Optional Feature Penetration | 81 |
| 23 | MTS Results and Forecast (1998 – 2000) | 85 |
| 24 | MTS Optional Feature Penetration (1998 – 2000) | 86 |
| 25 | SaskTel Results and Forecast (1998 – 2000) | 90 |
| 26 | SaskTel Optional Feature Penetration (1998 – 2000) | 91 |
| 27 | Sprint Canada – Estimated Lines in Service (as of December 31, 1999) |
100 |
| 28 | Cable Television Penetration of Canadian Homes (as of December 31, 1998) |
148 |
| Figures | ||
| 1 | Share of Business Local Lines (1998 – 2003) | 15 |
| 2 | Share of Residential Local Lines (1998 – 2003) | 15 |
| 3 | Share of Total Local Lines (1998 – 2003) | 15 |
| 4 | Share of Business Local Revenues (1998 – 2003) | 16 |
| 5 | Share of Residential Local Revenues (1998 – 2003) | 16 |
| 6 | Share of Total Local Revenues (1998 – 2003) | 16 |
| 7 | Ownership of AT&T Canada Corp. | 44 |
|
About This Report
| At over 160 pages, this is NBI/Michael Sone Associates’ first report
on the Canadian Local Telecom Services Market. The extensive primary research that is the
hallmark of all NBI reports was carried out over the past months as the local services
market has evolved and developed. Information, both quantitative and qualitative, was
analyzed and organized so as to provide the reader with a detailed understanding of the
background, current state and probable future of the local services sector. The final
product, Canadian Local Telecom Services Market Report, 1999 Edition, is the most
detailed research report available on this industry. The local services market will undergo many changes over the months to come that NBI will continue to track. This report establishes a foundation that will be built upon in future editions. Following an introduction and definition of local services in Sections 1 and 2, NBI provides detailed quantitative data in Section 3 that identifies the size of the market, the future growth for incumbents and newcomers in both the business and residential sectors and forecasts the share of the market to be held by the various participants. Section 4 discusses the regulatory issues germane to the industry while Section 5 looks at the options and economics of competitive local services, examining the various technologies used in its provisioning. Section 6 outlines the relevant marketing concerns including product, pricing, customer service and bundling, and examines the role that each plays in local competition and in the broader telecom industry. Section 7 presents the all-important Corporate Profiles that provide a wealth of qualitative and quantitative information about the companies that are already participants in the local services market as well as those who are at various stages of planning their entry. When Telecom Decision CRTC 97-8 was released on May 1, 1997 to establish the framework for competitive local services, there were many observers who believed that the Commission’s rejected of wholesale rates for resellers in favour of a facilities-based industry would limit the number of competitors because of the high capital cost of entry. Banish that thought. NBI has provided profiles on five incumbent telephone companies (ILECs) and 25 Competitive Local Exchange Carriers CLECs) or proposed CLECs. Information on an additional 12 companies that are in the very early stages of their planning is also provided. Corporate Profiles are divided into three groups, each having unique characteristics. The first is the companies that have or are building a national network: the ILECs and their CLEC subsidiaries, AT&T Canada and Sprint Canada. The second group is arguably the most interesting: the start-ups who begin with ideas and a vision and build a business from that base. Finally come the cable-TV companies, some of which are already providing service and others that remain in the planning stages. The report is supported by 37 comprehensive Exhibits and Figures that examine line counts, revenues, business and residential analysis, optional feature penetration, pricing and corporate relationships. The Canadian local telecom services market is roughly the same size, in terms of annual revenue, as the long-distance market. Competition for long distance has caused major changes and exciting developments over the five years since 1994 when equal access was launched. The local services market will, in the years to come, be no less interesting.
|
[Comment]
http://www.nbicanada.com/localtelecom.html