A Strong Canada Depends on Strong Wireless Networks - Bernard Lord


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A Strong Canada Depends on Strong Wireless Networks - Bernard Lord

  1. 1. A Strong Canada Depends onStrong Wireless NetworksBernard LordPresident & CEOCanadian Wireless Telecommunications AssociationThe Data EffectApril 17, 2013
  2. 2.  In 2010, the WirelessIndustry addedapproximately $43 billionto the Canadian economy. With $18 billion to GDPdirectly, through the saleof goods and services. Roughly $16 billion ineconomic benefits for thesuppliers involved in theproduction chain. And over $9 billion inconsumer surplus.$-$5,000$10,000$15,000$20,000$25,000MillionsComparison of Contribution to GDP 2010 In 2010, more than 261,000 people in Canada had jobs - directly or indirectly - in thewireless industry, where the average wage and value-added per employee werehigher than the corresponding Canadian average.The Benefits of Wireless in Canada
  3. 3. $-$1,000$2,000$3,000$4,000$5,000$6,000198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010MillionsCapital Expenditure $2.5 billion CAPEXin 2010 ($101.17/subscriber). The private sectorhas invested $11.6billion in spectrumand wirelessinfrastructure from2008 to 2011 and$23.7 billion over thepast decade.Red = Cost of spectrum auctionInvestment in Wireless in Canada
  4. 4. -5,000,00010,000,00015,000,00020,000,00025,000,00030,000,00035,000,000Projected Growthto 30 MillionSubscriber GrowthSource: Research and Markets 2Q10 Canadian Mobile Operator Forecast 2009-2014
  5. 5. 48%69%52%24%Smartphone Usage – First Quarter 201233%48%36%17%Overall18-3435-5455+Smartphone ownership2011 Results 2012 Results
  6. 6. 84%79%73%64%53%34%24%Apps linking you to weather informationApps that link you to social networks, Instant Messaging (Facebook, Twitter,LinkedIn, etc.)Apps that link you to travel, public transit, mapping or navigation informationAn app for YouTubeApps that link you to regional, national or international newsHealth, fitness or wellnessApps related to cooking or gardeningMost Common Types of Apps Used on Smartphones
  7. 7. Mobile Phone Banking and Payment Apps28%22%38%26%18%47%Smartphone 12Smartphone 1118-3435-5455+Cell phone only Smartphone owners living in cellphone only households are morelikely to do some of their bankingor pay for products and servicesfrom their phone.% who use banking and payment apps
  8. 8. Competitiveness8 Canadians have many choices for wireless services with more thantwo dozen wireless service providers, including national carriers,strong regional players and high profile resellers.Canada has one of the least concentrated markets in the OECD Canada is one of only six OECD countries with more than fourwireless service providers; 13 OECD countries have only three wireless service providers,and21 countries have only four wireless service providers; On average, the top two service providers in OECD countriescontrol 71.9% of subscribers. Canada’s top two serve only62.4%Source: 2012 Subscriber data; sourced from Bank of America Merrill Lynch Global Wireless Matrix
  9. 9. 9Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, February 2013• Two-thirds of the world’smobile data traffic will bevideo by 2017. Mobile videowill increase 16-foldbetween 2012 and 2017,accounting for over 66percent of total mobile datatraffic by the end of theforecast period.• Mobile-connected tabletswill generate more traffic in2017 than the entire globalmobile network in 2012.Wireless Traffic Growth
  10. 10. Wirelessly Connected Devices1050 Billionin 20205 Billionin 2010Source : Ericsson
  11. 11. 0246810122012 2013 2014 2015 2016 201766% CAGR 2012-201711Source: Cisco VNI Mobile, 2013Wireless Traffic Growth
  12. 12. Privacy12 Data traffic will help fuel economic growth in all sectors, but theconcept of more data being transferred – including personal, privateand secure information – is scary to some. Canadians’ privacy rights are well protected through PIPEDA. Our principles-based approach to privacy protection recognizes theright of consumers to be in control of their personal information,holds businesses accountable, but does not constrain legitimatebusiness activities. We need to maintain a privacy approach that protects consumerswithout unnecessarily stifling growth and innovation.
  13. 13. Key Priorities13More spectrumMore sitesLower feesSmarter regulations
  14. 14. A Strong Canada Depends onStrong Wireless Networks