Professional Documents
Culture Documents
2
CommunicationsMonitoringReport(CMR)
CanadianRadiotelevisionandTelecommunications
Commission(CRTC)
2016
3
4
Acknowledgement
TheCommissionwishestothankalltheentitiesthatcompletedtheCRTCDataCollectionforms,without
whichthisreportwouldnothavebeenpossible.TheCommissionwouldalsoliketoacknowledgethe
assistanceprovidedbyInnovation,ScienceandEconomicDevelopmentCanadaintheanalysisofbroadband
deployment;StatisticsCanadaforthevarioussupplementarydatausedinthisreport;Numerisforaudience
measures;NLogicfortheMediaTechnologyMonitor(MTM);andMediastats.
Interestedpartiesarewelcometoprovidecommentsforimprovementsoradditionstofutureeditionsofthe
report.YoucansendyourcommentstotheattentionoftheSecretaryGeneral,CRTC,Ottawa,K1A0N2.
6
ChairmansmessageCMR2016
Iampleasedtopresentthe2016CommunicationsMonitoringReport,whichprovidesacomprehensiveview
oftheCanadiancommunicationsector.
ItisclearthatCanadiansareshiftingtowardsdigitalplatformsandmobiletechnologies.In2015,Internet
dataconsumptiongrewbyalmost40%whiledatatrafficovermobilewirelessnetworksincreasedby44%.
Subscriptionstolandlinetelephonescontinuetodecreaseasmobileownershipgrows.Canadiansacrossthe
countrydependincreasinglyonwirelesstechnologiesintheirdailylivesandwirelessservicesnowaccount
for51%ofallretailtelecommunicationsrevenues.
Tobetterreflectevolvingtechnologiesandshiftingconsumptionhabits,improvedindicatorshavebeen
addedtothisyearsreport.Forexample,thebroadbandmeasurementdatanowincludesusagedatafor
videocallingandlivestreamingapplications.Also,tobetteranalyzepatternsfromageographical
perspective,provincialandregionalbreakdownshavebeenaddedthroughoutthedifferentsectionsofthe
report.
Boththebroadcastingandtelecommunicationsectorsareatimportantcrossroadsthataredeterminingtheir
futures.TheCRTCundertookmanyimportantproceedingsinrecentyearsandhasputinplacemeasuresto
ensureourcommunicationsystemadaptstothedigitalworldandthatCanadianscanparticipateinthe
unfoldingdigitaleconomy.
Thisreportisanimportanttooltoevaluatewherewevebeenandtoinformourchoicesmovingforward.We
continueourongoingeffortstoconsultwithCanadiansontheseimportanttopicsthathavegreatimpactson
theirdailylives.WeareproudtoworkonbehalfofthepublicinterestandtoputCanadiansatthecentreof
theirworldclasscommunicationssystem.
JeanPierreBlais,ChairmanandCEO
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TableofContentsCMR2016
TableofContents
Listoftablesandfigures........................................................................................................................13
ExecutiveSummary...............................................................................................................................31
i Keytrendsinthecommunicationsindustry......................................................................................31
ii DeviceownershipanddataconsumptionareincreasinglypopularamongCanadians....................32
iii CanadianscontinuetowatchTV........................................................................................................32
iv Theuseofstreamingmusicservicescontinuestogrow....................................................................33
1.0 Introduction..............................................................................................................................35
i PurposeoftheCommunicationsMonitoringReport.........................................................................36
ii Scopeandstructureofthisyearsreport..........................................................................................36
iii Changestothe2016report...............................................................................................................37
1.1 TheCRTC...................................................................................................................................39
i Whoweareandwhatwedo.............................................................................................................40
CanadasCommunicationSystem:AnOverviewforCanadians..................................................41
i Industrylandscapeandcompetition..................................................................................................43
ii Communicationsserviceexpendituresandprices.............................................................................45
iii Accessandserviceavailability...........................................................................................................55
2.1 LOCALSPOTLIGHT:ACCESSFOROFFICIALLANGUAGEMINORITYCOMMUNITIES.............................................63
3.0 TheCommunicationsindustry...................................................................................................69
i Revenues............................................................................................................................................71
ii Industrycharacteristics......................................................................................................................73
iii Financialperformance.......................................................................................................................74
iv Consumervoices................................................................................................................................79
4.0 Broadcastingsectoroverview....................................................................................................81
i Revenues............................................................................................................................................83
ii Industrycharacteristics......................................................................................................................85
iii Financialperformance.......................................................................................................................88
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TableofContentsCMR2016
4.1 Radiosector..............................................................................................................................91
i Revenues............................................................................................................................................93
ii Financialperformance.....................................................................................................................100
iii Availabilityofradioandaudioservices............................................................................................105
iv Audiencemeasurement...................................................................................................................110
v Programmingcontributionsandexpenditures................................................................................117
vi Tangiblebenefits..............................................................................................................................122
vii Programmingofhighstandards.......................................................................................................123
viii Ownershipgroups............................................................................................................................126
4.2 Televisionsector.....................................................................................................................129
i Revenues..........................................................................................................................................131
ii Financialperformance.....................................................................................................................141
iii Availabilityoftelevisionandvideoservices.....................................................................................144
iv Audiencemeasurement...................................................................................................................148
v Programmingexpenditures..............................................................................................................158
vi Tangiblebenefits..............................................................................................................................174
vii Programmingofhighstandards.......................................................................................................175
viii Ownershipgroups............................................................................................................................179
4.3 Broadcastingdistributionsector..............................................................................................185
i Revenues..........................................................................................................................................187
ii SubscriberData................................................................................................................................188
iii Financialperformance.....................................................................................................................190
iv Performanceindicators....................................................................................................................191
v Price..................................................................................................................................................191
vi Competitivelandscape.....................................................................................................................194
vii Consumervoices..............................................................................................................................195
viii Onlinetelevisionservices.................................................................................................................195
ix ContributiontoCanadianprogramming..........................................................................................198
x Affiliationpayments.........................................................................................................................200
xi Broadcastingdisputeresolution......................................................................................................201
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TableofContentsCMR2016
5.0 Telecommunicationssectoroverview......................................................................................203
i Revenues..........................................................................................................................................205
ii Forbearance.....................................................................................................................................206
iii CanadianOwnership........................................................................................................................206
iv Number,size,andtypeofcompanies..............................................................................................207
v Financialperformance.....................................................................................................................210
vi Annualinvestmentinplantandequipment....................................................................................212
5.1 Telecommunicationsretailsectors..........................................................................................215
i Revenues..........................................................................................................................................217
ii Technologyindicators......................................................................................................................220
iii Competitivelandscape.....................................................................................................................223
iv Contribution.....................................................................................................................................225
v Consumervoices..............................................................................................................................226
5.2 Wirelinevoiceretailsector......................................................................................................229
i Revenues..........................................................................................................................................231
ii Subscriberdata................................................................................................................................234
iii Performanceindicators....................................................................................................................237
iv Price..................................................................................................................................................238
v Typeoflocalfacilities.......................................................................................................................241
vi Competitivelandscape.....................................................................................................................242
vii Paytelephoneservice......................................................................................................................243
5.3 RetailInternetsectorandbroadbandavailability....................................................................245
i Revenues..........................................................................................................................................248
ii Subscriberdata................................................................................................................................249
iii Performanceindicators....................................................................................................................252
iv Price..................................................................................................................................................253
v Consumertrends..............................................................................................................................257
vi Competitivelandscape.....................................................................................................................259
vii Capacityrequirements.....................................................................................................................262
viii Keyindicators...................................................................................................................................265
ix Broadbandserviceavailability.........................................................................................................268
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TableofContentsCMR2016
5.4 Dataandprivatelineretailsector............................................................................................273
i Revenues..........................................................................................................................................275
ii Competitivelandscape.....................................................................................................................276
5.5 Wirelessretailsector...............................................................................................................279
i Revenues..........................................................................................................................................281
ii Subscriberdata................................................................................................................................284
iii Competitivelandscape.....................................................................................................................286
iv Technologyindicators......................................................................................................................290
v Performanceindicators....................................................................................................................297
vi Price..................................................................................................................................................298
vii Coverage/availabilitydetails............................................................................................................308
5.6 Wholesaletelecommunicationssector....................................................................................317
i Revenues..........................................................................................................................................319
ii Subscriberdata................................................................................................................................327
iii Competitivelandscape.....................................................................................................................327
iv Forbearance.....................................................................................................................................329
v Interproviderexpenses...................................................................................................................331
A.1 Methodology...........................................................................................................................333
A.2 Datacollectionandanalysis....................................................................................................335
A.3 Glossary..................................................................................................................................339
A.4 Listofacronymsusedinthereport..........................................................................................347
A.5 Circulars,decisions,publicnotices,orders,noticesofconsultation,regulatorypoliciesandcodes
referencedinthereport......................................................................................................................349
A.6 ListofCanadiancompaniesreferencedinthereportandtheirfullnames...............................351
A.7 Telecommunicationsmarketsectordescription.......................................................................353
A.8 ClassificationofCanadianTSPs................................................................................................357
A.9 Ruralcommunitiesincludedinservicepriceassessment..........................................................359
A.10 Aboutbroadbandmeasurement..............................................................................................363
12
ListoftablesandfiguresCMR2016
Listoftablesandfigures
CanadasCommunicationSystem:AnOverviewforCanadians..................................................41
i Industrylandscapeandcompetition..................................................................................................43
Table2.0.1Annualcommunicationsserviceindustryrevenues($billions)..........................................43
Figure2.0.1Percentageoftotalcombinedrevenues,bybroadcastingandtelecommunications
ownershipgroups...................................................................................................................................44
Table2.0.2Numberofsubscriptionswithbundledservices(millions).................................................45
ii Communicationsserviceexpendituresandprices.............................................................................45
Table2.0.3Monthlyhouseholdspendingoncommunicationservices,byserviceandbyincome
quintile($/month/household)...............................................................................................................46
Table2.0.4Householdspendingoncommunicationservices,byincomequintile,2014.....................47
Figure2.0.2Monthlyhouseholdexpenditures,byserviceandbyageofreferenceperson
($/month/household),2014..................................................................................................................48
Figure2.0.3Priceindicesfortelephoneservices,BDUservicesandInternetservicescomparedtothe
CPI...........................................................................................................................................................50
Figure2.0.4Broadband,wirelineandwirelesspricingcomparisoninruralcommunities,per
province/territory,2015.........................................................................................................................51
Figure2.0.5Broadband,wireline,andwirelessservicepricingcomparisoninurbancommunities,per
province/territory,2015.........................................................................................................................53
iii Accessandserviceavailability...........................................................................................................55
Figure2.0.6Totalresidentialconnectionsdistributionbyservicetype(%)..........................................55
Figure2.0.7Cellphoneandlandlineownershiprates............................................................................57
Table2.0.5Canadianwirelineandmobilewirelessservicesubscribersper100households...............59
Table2.0.6Wirelineandmobilewirelesstelephoneservicesubscribersper100households,by
province,2014........................................................................................................................................59
Table2.0.7Canadianwirelineandmobilewirelessservicesubscribersper100households,byincome
quintile...................................................................................................................................................60
Table2.0.8HomecomputersandInternetusefromhomeper100households,byincomequintile..61
Figure2.0.8Residentialbroadbandserviceavailability(5Mbpsorhigherdownloadspeed),by
province/territory(%ofhouseholds).....................................................................................................62
Table2.0.9ResidentialInternetsubscriptionsbyadvertiseddownloadspeedper100households....62
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ListoftablesandfiguresCMR2016
2.1 LOCALSPOTLIGHT:ACCESSFOROFFICIALLANGUAGEMINORITYCOMMUNITIES.............................................63
Table2.1.1Officiallanguageminoritypopulationasapercentageofthetotalpopulation,byprovince
andterritory,2012.................................................................................................................................64
Map2.1.1LocationsofofficiallanguageminoritycommunitiesinCanada..........................................66
Table2.1.2Percentageofofficiallanguageminoritycommunityhouseholdshavingaccessto
communicationsservicesintheirofficiallanguage,bytypeofservice,fortheprovinces/territoriesand
allofCanada,2013.................................................................................................................................67
3.0 TheCommunicationsindustry...................................................................................................69
i Revenues............................................................................................................................................71
Table3.0.1Communicationsrevenues($billions)................................................................................71
Figure3.0.1Communicationsannualrevenuegrowthrates.................................................................71
Table3.0.2Communicationsrevenuedistributionbyregion($billions)..............................................72
Table3.0.3Communicationsrevenues,bytypeofserviceprovider($billions)...................................72
ii Industrycharacteristics......................................................................................................................73
Table3.0.4IndustryconvergenceCablevs.telecommunications......................................................73
Table3.0.5Percentageofbroadcastingandtelecommunicationsrevenuesgeneratedbycompanies
operatinginmultiplesectors.................................................................................................................73
iii Financialperformance.......................................................................................................................74
Figure3.0.2Percentoftotalrevenues,bybroadcastingandtelecommunicationsownershipgroups74
Figure3.0.3Communicationsrevenues,bytypeofprovider,2015......................................................75
Figure3.0.4Broadcastingandtelecommunicationsrevenues(excludingnonprogrammingand
exemptservices)....................................................................................................................................75
Figure3.0.5Cablebasedserviceproviderrevenues,byservicetype...................................................76
Figure3.0.6Canadiancommunicationsrevenuecompositionforaselectnumberoflargecompanies,
2015........................................................................................................................................................77
Figure3.0.7EBITDAmarginsachievedbycablebasedBDUs,traditionaltelephonecompanies,and
otherserviceproviders..........................................................................................................................78
iv Consumervoices................................................................................................................................79
Table3.0.6NumberofcommunicationsrelatedcontactsreceivedbytheCRTC,bytypeofissue......79
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ListoftablesandfiguresCMR2016
4.0 Broadcastingsectoroverview....................................................................................................81
i Revenues............................................................................................................................................83
Table4.0.1Broadcastingrevenues($millions)......................................................................................83
Table4.0.2Broadcastingrevenuedistributionbyregion($billions)....................................................84
ii Industrycharacteristics......................................................................................................................85
Table4.0.3Percentageofbroadcastingrevenuesgeneratedbycompaniesoperatinginmultiple
sectors....................................................................................................................................................85
Figure4.0.1Percentoftotalbroadcastingrevenues,byownershipgroups.........................................85
Figure4.0.2Percentageoftotalcommercialradiorevenuesbybroadcaster,2015.............................86
Figure4.0.3Percentageoftelevisionrevenuesbybroadcaster,2015..................................................87
iii Financialperformance.......................................................................................................................88
Figure4.0.4Totalbroadcastingrevenuesbytypeofservice($billion).................................................88
Figure4.0.5PBIT/EBITDAmarginsbytypeofservice(%)......................................................................89
4.1 Radiosector..............................................................................................................................91
i Revenues............................................................................................................................................93
Table4.1.1Revenues($millions)ofprivatecommercialradiostations,bylanguageofbroadcastand
frequencyband......................................................................................................................................93
Table4.1.2Numberofprivatecommercialradiostationsreportingfinancialresults,bylanguageof
broadcastandfrequencyband..............................................................................................................94
Table4.1.3RevenuesofCBCradiostationssummary,bytypeofrevenue...........................................94
Table4.1.4Revenues($millions)ofcommercialradiostations,byradiomarkettype........................95
Table4.1.5Revenues($millions)ofethniccommercialradiostations,byprovince............................95
Figure4.1.1Revenuesofprivatecommercialradiostationsandnumberofreportingundertakings..96
Figure4.1.2RevenuesofEnglishlanguageprivatecommercialradiostationsandnumberofreporting
undertakings...........................................................................................................................................97
Figure4.1.3RevenuesofFrenchlanguageprivatecommercialradiostationsandnumberofreporting
undertakings...........................................................................................................................................97
Figure4.1.4RevenuesofEthnicprivatecommercialradiostationsandnumberofreporting
undertakings...........................................................................................................................................98
Table4.1.6Financialsummary($thousands)ofnative,community,andcampusradiostations........99
ii Financialperformance.....................................................................................................................100
Figure4.1.5AverageperstationannualrevenuesandPBITofprivatecommercialradiostations....100
Figure4.1.6PBITandPBITmarginsofprivatecommercialradiostations...........................................101
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ListoftablesandfiguresCMR2016
Figure4.1.7AverageannualrevenuesandPBITperstationofEnglishlanguageprivatecommercial
radiostations........................................................................................................................................101
Figure4.1.8PBITandPBITmarginsofEnglishlanguageprivatecommercialradiostations..............102
Figure4.1.9AverageannualrevenuesandPBITperstationofFrenchlanguageprivatecommercial
radiostations........................................................................................................................................102
Figure4.1.10PBITandPBITmarginsofFrenchlanguageprivatecommercial....................................103
Figure4.1.11AverageperstationannualrevenuesandPBITofEthnicprivatecommercialradio
stations.................................................................................................................................................103
Figure4.1.12PBITandPBITmarginEthnicprivatecommercialradiostations................................104
iii Availabilityofradioandaudioservices............................................................................................105
Table4.1.7NumberandtypeofradioandaudioservicesauthorizedtobroadcastinCanada,by
languageofbroadcast..........................................................................................................................105
Table4.1.8Numberofpublic/communitybasedandprivateradioservicesauthorizedtobroadcast
overtheair,byprovinceandlanguageofbroadcast,2015................................................................106
Figure4.1.13TypesofradioandaudioservicesauthorizedtobroadcastinCanada,asapercentageof
allsuchservices,2015..........................................................................................................................106
Table4.1.9Numberofnewovertheairradiostationslicensedcategorizedbylanguage,licence
category,typeandlicensingprocess...................................................................................................107
Figure4.1.14PercentageofCanadiansaccessingonlinestreamedaudioservicesmonthly,bylanguage
group....................................................................................................................................................108
Figure4.1.15Satelliteradiosubscriptions,bylanguagegroup...........................................................109
iv Audiencemeasurement...................................................................................................................110
Table4.1.10AverageweeklyhoursofradiotunedpercapitabyagegroupforallCanada...............111
Table4.1.11Radiotuningshare(%)inanaverageweekforEnglishandFrenchlanguageAMandFM
stations.................................................................................................................................................111
Table4.1.12AverageweeklyhoursofradiotunedbylistenerforEnglishandFrenchlanguageAM
andFMstations....................................................................................................................................112
Table4.1.13Tuning(millionsofhours)andtuningshare(%)achievedbythelargestEnglishlanguage
privatecommercialradiooperatorsinCanadainanaverageweek....................................................112
Table4.1.14Tuning(millionsofhours)andtuningshare(%)achievedbythelargestFrenchlanguage
privatecommercialradiooperatorsinCanadainanaverageweek....................................................113
Figure4.1.16Radiotuningbystationtypeindiarymarkets,2015.....................................................114
Table4.1.15RadiotuningsharesEnglishlanguageradiostationformatsindiarymarkets,2015...114
Table4.1.16RadiotuningsharesFrenchlanguageradiostationformatsindiarymarkets,2015...115
Table4.1.17RadiotuningsharesEnglishlanguageradiostationformatsinPPMmarkets,2015....115
16
ListoftablesandfiguresCMR2016
Table4.1.18RadiotuningsharesFrenchlanguageradiostationformatsinPPMmarkets,2015....116
v Programmingcontributionsandexpenditures................................................................................117
Chart4.1.1RadioCCDcontributionsstructure....................................................................................118
Figure4.1.17CCDcontributionsbyregulatorymeasure($millions)..................................................119
Figure4.1.18CCDcontributionsbyregulatorymeasure(percentage)................................................119
Table4.1.19SummaryofannualCCDcontributionsreportedbyradiostationlicensees($thousands)
..............................................................................................................................................................120
Table4.1.20AnnualCCDcontributionsreportedbynewradiostationlicenseesduringthefirstlicence
term($thousands)...............................................................................................................................120
Table4.1.21AnnualCCDcontributionsreportedbyradiolicenseesinthecontextoflicencerenewals
($thousands)........................................................................................................................................121
Table4.1.22AnnualCCDcontributionsreportedbyradiolicenseesinthecontextofchangesin
ownershipand/orcontrol($thousands).............................................................................................121
vi Tangiblebenefits..............................................................................................................................122
Table4.1.23Numberofradioservicetransactions,valueofthosetransactionsandcorresponding
tangiblebenefitsfortheperiodfrom1January2011to31December2015($millions)...................122
vii Programmingofhighstandards.......................................................................................................123
Table4.1.24NumberofradiorelatedcontactsreceivedbytheCRTC,bytypeofissue.....................123
Table4.1.25Numberofradiocomplaintsbysubjectmatter..............................................................124
Table4.1.26RadiocomplaintshandledbytheCBSCin2015bylanguageandnationalorigin..........125
Table4.1.27ComplaintshandledbytheASC.......................................................................................125
viii Ownershipgroups............................................................................................................................126
Table4.1.28EnglishlanguageandFrenchlanguageradiorevenuesandnumberofundertakings
reportingforthelargestcommercialradiooperatorsinCanada........................................................126
4.2 Televisionsector.....................................................................................................................129
i Revenues..........................................................................................................................................131
Table4.2.1Revenuesoftelevisionservices,bytypeofservice($millions)........................................131
Figure4.2.1Televisionservicesrevenues,bytypeofservice($millions)...........................................132
Figure4.2.2Privateconventionaltelevisionrevenuesources(%),2015.............................................132
Figure4.2.3AdvertisingrevenuesofconventionaltelevisionstationsownedandoperatedbytheCBC
..............................................................................................................................................................133
Table4.2.2CBCconventionaltelevisionrevenues($millions)............................................................133
Table4.2.3Advertisingandotherrevenues:privateconventionaltelevisionstations,bylanguageof
broadcast..............................................................................................................................................134
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ListoftablesandfiguresCMR2016
Table4.2.4Revenuesofdiscretionaryservices,bylanguageofbroadcast.........................................135
Figure4.2.4Rankingbyrevenueofindividualdiscretionaryservices,indescendingorder,2015.....136
Figure4.2.5RevenuesofEnglishlanguageprivateconventionaltelevisionanddiscretionaryservices
..............................................................................................................................................................137
Figure4.2.6RevenuesofFrenchlanguageprivateconventionaltelevisionanddiscretionaryservices
..............................................................................................................................................................138
Figure4.2.7Revenuesofethnicandthirdlanguagediscretionaryservices........................................139
Figure4.2.8CollectiverevenuesoftopthreeEnglishlanguageprivateconventionaltelevision
ownershipgroups.................................................................................................................................140
Figure4.2.9CollectiverevenuesoftoptwoownersofFrenchlanguageprivateconventionalstations
..............................................................................................................................................................140
ii Financialperformance.....................................................................................................................141
Figure4.2.10AggregatePBITmarginsforprivateconventionaltelevisionanddiscretionaryservices
..............................................................................................................................................................141
Figure4.2.11AggregatePBITmarginsforEnglishlanguageprivateconventionaltelevisionand
discretionaryservices...........................................................................................................................142
Figure4.2.12AggregatePBITmarginsforFrenchlanguageprivateconventionaltelevisionand
discretionaryservices...........................................................................................................................143
Figure4.2.13AggregatePBITmarginsforethnicandthirdlanguagediscretionaryservices..............143
iii Availabilityoftelevisionandvideoservices.....................................................................................144
Chart4.2.1Programmingsourcesandplatforms................................................................................144
Figure4.2.14PercentageofCanadianswhoviewedtelevisionandInternetvideoservicesand
programminginthepastmonth,bylanguageandplatform...............................................................145
Table4.2.5TypeandnumberoftelevisionservicesauthorizedtobroadcastinCanada,bylanguageof
broadcast..............................................................................................................................................146
Table4.2.6NumberofCanadianpublic/community/educationalandprivateconventionaltelevision
servicesauthorizedtobroadcast,byprovinceandlanguageofbroadcast,2015...............................147
iv Audiencemeasurement...................................................................................................................148
Figure4.2.15AveragenumberofhoursCanadianswatchedtraditionaltelevision(20102011through
20142015broadcastyears)andInternettelevision(2009to2015)...................................................149
Table4.2.7AveragenumberofhoursCanadianswatchedtraditionaltelevisioneachweek,byage
group....................................................................................................................................................149
Table4.2.8ViewingshareofCanadianandnonCanadiantelevisionservices,bylanguageandtypeof
service,forallofCanada,excludingtheQuebecfrancophonemarket...............................................150
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ListoftablesandfiguresCMR2016
Table4.2.9ViewingshareofCanadianandnonCanadiantelevisionservices,bylanguageandtypeof
service,intheQuebecfrancophonemarket........................................................................................151
Table4.2.10Averageweeklyviewinghours(millions)forCanadianprogramsbroadcastbyCanadian
televisionservices,bylanguagemarket,programorigin,andprogramcategory...............................152
Table4.2.11AverageweeklyviewinghoursforCanadianprogramsbroadcastbyprivateconventional
televisionservices,bylanguagemarket,programorigin,andprogramcategory...............................153
Table4.2.12AverageweeklyviewinghoursforCanadianprogramsbroadcastbyCBCconventional
services,bylanguagemarket,programorigin,andprogramcategory...............................................154
Table4.2.13AverageweeklyviewinghoursforCanadianprogramsbroadcastbydiscretionary
services,bylanguagemarket,programorigin,andprogramcategory...............................................155
Table4.2.14ViewingshareofEnglishandFrenchlanguageCanadianservices,byownershipgroupin
allofCanada,excludingtheQuebecfrancophonemarket..................................................................156
Table4.2.15ViewingshareofEnglishandFrenchlanguageCanadianservices,byownershipgroupin
theQuebecfrancophonemarket.........................................................................................................156
Table4.2.16Totalviewinghours(millions)bymarket........................................................................157
v Programmingexpenditures..............................................................................................................158
Chart4.2.2Canadianprogrammingfundingecosystem(20142015broadcastyear)........................159
Figure4.2.16CPEontelevision,bytypeofservice,2015($millions).................................................160
Figure4.2.17Televisionprogrammingexpenditures($4.2billiontotal),PNIvs.Canadianvs.non
Canadian,2015.....................................................................................................................................161
Figure4.2.18Programmingexpendituresperrevenuedollar.............................................................162
Table4.2.17PNIexpendituresbytypeofserviceandprogramcategory($millions)........................163
Table4.2.18PNIexpendituresbyCBCandlargeprivateownershipgroups,byprogramcategory($
millions)................................................................................................................................................164
Table4.2.19CPEforCBCEnglishandFrenchlanguageconventionaltelevision,byprogramcategory
($thousands)........................................................................................................................................165
Table4.2.20CPEforprivateconventionaltelevision,byprogramcategory($thousands)................166
Figure4.2.19DistributionofCPEforprivateconventionaltelevisionservices,byprogramcategory,
2015......................................................................................................................................................167
Table4.2.21ExpendituresonnonCanadianprogrammingbyprivateconventionaltelevisionservices,
byprogramcategory($thousands).....................................................................................................168
Table4.2.22ExpendituresonnonCanadianprogrammingbyprivateandCBCconventionaltelevision
services,byprogramcategoryandlinguisticmarket($thousands)....................................................169
Table4.2.23CPEandexpendituresonnonCanadianprogrammingreportedbyspecialtyservices,by
languageofbroadcastandprogramcategory($thousands)(Part1of2)..........................................170
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ListoftablesandfiguresCMR2016
Table4.2.24CPEandexpendituresonnonCanadianprogrammingreportedbyspecialtyservices,by
languageofbroadcastandprogramcategory($thousands)(Part2of2)..........................................171
Table4.2.25CPEreportedbyPPVandVODservices($thousands)....................................................172
Table4.2.26StatisticaldatareportedbylicensedVODservices.........................................................173
vi Tangiblebenefits..............................................................................................................................174
Table4.2.27Valueoftelevisionownershiptransactionsandcorrespondingtangiblebenefitsforthe
periodfrom1January2011to31December2015.............................................................................174
vii Programmingofhighstandards.......................................................................................................175
Table4.2.28NumberoftelevisionrelatedcontactsreceivedbytheCRTC,bytypeofissue..............176
Table4.2.29TelevisionprogrammingcomplaintsreceivedbytheCommissionandreferredtothe
CanadianBroadcastStandardsCouncil,bysectorandissue...............................................................177
Table4.2.30TelevisionrelatedcomplaintshandledbytheCBSC,bylanguageofbroadcastandorigin
oftheprogram(20142015).................................................................................................................178
Table4.2.31Complaintsrelatingtodigitaladvertisingandadvertisingontelevision,handledbythe
ASC.......................................................................................................................................................178
viii Ownershipgroups............................................................................................................................179
Table4.2.32BCEControllingownershipinterestindiscretionaryandondemandservices,2015..180
Table4.2.33CBCControllingownershipinterestindiscretionaryandondemandservices,2015..181
Table4.2.34CogecoControllingownershipinterestindiscretionaryandondemandservices,2015
..............................................................................................................................................................181
Table4.2.35CorusControllingownershipinterestindiscretionaryandondemandservices,2015182
Table4.2.36QubecorControllingownershipinterestindiscretionaryandondemandservices,
2015......................................................................................................................................................183
Table4.2.37RogersControllingownershipinterestindiscretionaryandondemandservices,2015
..............................................................................................................................................................183
Table4.2.38ShawControllingownershipinterestindiscretionaryservices,2015...........................184
4.3 Broadcastingdistributionsector..............................................................................................185
i Revenues..........................................................................................................................................187
Table4.3.1Revenues($millions)ofbroadcastingdistributionundertakings(BDU)Basicandnon
basicservices........................................................................................................................................187
Table4.3.2Percentageofbroadcastingdistributionundertakingrevenues(%)Basicandnonbasic
services.................................................................................................................................................187
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ListoftablesandfiguresCMR2016
ii SubscriberData................................................................................................................................188
Table4.3.3Broadcastingdistributionundertakingssubscriber(thousands)numbersBasicandnon
basicservices........................................................................................................................................188
Table4.3.4Percentageofbroadcastingdistributionundertakingssubscriber(%)Basicandnonbasic
services.................................................................................................................................................188
Table4.3.5NumberofsubscribersforthelargestCanadianBDUs(thousands).................................189
Table4.3.6PercentageofhouseholdssubscribingtoBDUs................................................................189
iii Financialperformance.....................................................................................................................190
Figure4.3.1EBITDAmarginsachievedbyBDUsBasicandnonbasicservices..................................190
iv Performanceindicators....................................................................................................................191
Table4.3.7Monthlyrevenuespersubscriber,bytypeofBDUs..........................................................191
v Price..................................................................................................................................................191
Figure4.3.2BDUbasicservicepricesbymajorcentre,2015..............................................................192
Figure4.3.3BDUbasicservicepricesbyprovince,urbanandrural,2015..........................................193
vi Competitivelandscape.....................................................................................................................194
Figure4.3.4Percentageofrevenuesandsubscribersbytypeofdistributionplatform,2015............194
vii Consumervoices..............................................................................................................................195
Table4.3.8NumberofBDUrelatedcontactsreceivedbytheCRTC...................................................195
viii Onlinetelevisionservices.................................................................................................................195
Figure4.3.5PercentageofCanadianswhowatchTVexclusivelyonline,nationallyandbylanguage195
Figure4.3.6PercentageofCanadianswhosubscribetoNetflix,byregion.........................................196
Figure4.3.7PercentageofCanadianswhosubscribetoNetflix,byagegroup...................................196
Figure4.3.8LikelihoodofCanadianscuttingthecordontheircurrenttraditionalTVsubscriptionin
thenext12months(percentage).........................................................................................................197
Table4.3.9Adoptionrates(%)ofvariousvideotechnologiesinCanadabylanguagemarket...........197
ix ContributiontoCanadianprogramming..........................................................................................198
Figure4.3.9ContributionstoCanadianprogrammingbytype(millions)............................................198
Figure4.3.10BDUcontributionstoCanadianprogrammingbyrecipient...........................................199
x Affiliationpayments.........................................................................................................................200
Table4.3.10AffiliationpaymentsmadetoCanadianandnonCanadiandiscretionaryservices
reportedbyBDUs($millions)..............................................................................................................200
Table4.3.11AffiliationpaymentsreceivedbyCanadianandnonCanadiandiscretionaryservices
reportedbyBDUs($millions)..............................................................................................................200
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ListoftablesandfiguresCMR2016
xi Broadcastingdisputeresolution......................................................................................................201
Table4.3.12Numberofdisputeresolutioncasesin20152016..........................................................201
5.0 Telecommunicationssectoroverview......................................................................................203
i Revenues..........................................................................................................................................205
Table5.0.1Telecommunicationsrevenues(retailandwholesale)($billions)....................................205
Table5.0.2Telecommunicationsrevenuedistributionbyregion($billions)......................................205
ii Forbearance.....................................................................................................................................206
Table5.0.3Percentage(%)oftelecommunicationsrevenuesgeneratedbyforborneservices..........206
iii CanadianOwnership........................................................................................................................206
iv Number,size,andtypeofcompanies..............................................................................................207
Figure5.0.1Percentageoftelecommunicationsrevenues,bytypeofTSP,2015...............................207
Figure5.0.2Percentoftotaltelecommunicationsrevenuesbyownershipgroups(%)......................208
Table5.0.4Totaltelecommunicationsrevenues,bytypeofserviceprovider($millions)..................209
v Financialperformance.....................................................................................................................210
Figure5.0.3TelecommunicationsrevenuesandEBITDAmargins.......................................................210
Figure5.0.4PercentageoftotalrevenuesbysizeofentityandtheirrespectiveEBITDAmargins,2015
..............................................................................................................................................................211
vi Annualinvestmentinplantandequipment....................................................................................212
Table5.0.5Telecommunicationsinvestmentsmadeinplantandequipment,bytypeofproviderof
telecommunicationsservice($billions)...............................................................................................212
Figure5.0.5Telecommunicationscapitalexpendituresasapercentageofrevenues,bytypeofTSP213
5.1 Telecommunicationsretailsectors..........................................................................................215
i Revenues..........................................................................................................................................217
Table5.1.1Telecommunicationsretailrevenues,bymarketsector($billions).................................217
Figure5.1.1Telecommunicationswirelineandwirelessretailrevenues............................................218
Figure5.1.2Distributionoftelecommunicationsretailrevenues,bymarketsector..........................219
ii Technologyindicators......................................................................................................................220
Figure5.1.3Annualrevenuechangefornewerandlegacytelecommunicationsservices,by
technology............................................................................................................................................220
Figure5.1.4ResidentialIPbasedservicerevenues.............................................................................221
Figure5.1.5Homespassedbyfibreopticcable(millions),2015.........................................................221
Figure5.1.6Percentageofresidentiallinesusingfibreopticcable,2015..........................................222
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ListoftablesandfiguresCMR2016
iii Competitivelandscape.....................................................................................................................223
Figure5.1.7Totalretailtelecommunicationsrevenuemarketshare,bytypeofserviceprovider,2015
..............................................................................................................................................................223
Table5.1.2Numberandpercentageofretailtelecommunicationsrevenuesgeneratedbycompanies
operatinginmultiplemarkets..............................................................................................................224
Table5.1.3Wirelinetelecommunicationsrevenuemarketshare(%),bytypeofserviceprovider,2015
..............................................................................................................................................................224
iv Contribution.....................................................................................................................................225
Figure5.1.8Subsidypaidtolocalexchangecarriersandtherevenuepercentcharge......................225
v Consumervoices..............................................................................................................................226
Table5.1.4NumberoftelecommunicationsrelatedcontactsreceivedbytheCRTC,bytypeofissue
andservice,2015..................................................................................................................................226
Table5.1.5SummaryofissuesraisedintelecommunicationscomplaintshandledbytheCCTS(2014
2015)....................................................................................................................................................227
5.2 Wirelinevoiceretailsector......................................................................................................229
i Revenues..........................................................................................................................................231
Table5.2.1Localandlongdistanceretailrevenues($millions)..........................................................231
Table5.2.2Residentiallocaltelephoneandlongdistanceserviceretailrevenues,bytypeofTSP($
millions)................................................................................................................................................232
Table5.2.3Businesslocaltelephoneandlongdistanceretailrevenues,bytypeofTSP($millions).233
Table5.2.4Longdistanceretailrevenuesbytypeofproviderandsize($millions)...........................233
ii Subscriberdata................................................................................................................................234
Table5.2.5Numberofretailmanagedandnonmanagedlocaltelephonelines(thousands)............234
Table5.2.6ResidentialandbusinesslocaltelephonelinesbytypeofTSP(thousands).....................235
Figure5.2.1RetailVoIPlocallines,accessdependentandaccessindependent,bymarket..............236
iii Performanceindicators....................................................................................................................237
Table5.2.7Localandlongdistanceretailmonthlyrevenues($),perline...........................................237
Table5.2.8Longdistanceretailmonthlyrevenues($),perline..........................................................237
Table5.2.9Localtelephoneretailservicemonthlyrevenues($)perline,bytypeofTSP..................237
Table5.2.10Longdistanceretailrevenues($)perminute,bytypeofTSP.........................................238
iv Price..................................................................................................................................................238
Figure5.2.2Priceofbasiclocaltelephoneservice($/month)andnumberofcompaniesprovidingthis
serviceinmajorurbancentres,2015...................................................................................................239
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ListoftablesandfiguresCMR2016
Figure5.2.3Priceofbasiclocaltelephoneservice($/month)andnumberofcompaniesprovidingthis
serviceinruralcommunities,byprovinceandterritory,2015............................................................240
v Typeoflocalfacilities.......................................................................................................................241
Figure5.2.4AlternativeTSPandcablebasedcarrierslocalretaillines,bytypeoffacility.................241
Figure5.2.5Percentageoflocallinesbytypeofline,2015.................................................................242
vi Competitivelandscape.....................................................................................................................242
Table5.2.11LargeincumbentTSPsretaillongdistancerevenuemarketshare(%),byregion.........242
vii Paytelephoneservice......................................................................................................................243
Table5.2.12LargeincumbentTSPspayphonerevenues($)..............................................................243
Table5.2.13LargeincumbentTSPspayphonequantities..................................................................243
5.3 RetailInternetsectorandbroadbandavailability....................................................................245
i Revenues..........................................................................................................................................248
Table5.3.1RetailInternetservicerevenues($millions).....................................................................248
Table5.3.2ResidentialInternetaccessservicerevenues,bytypeofservice($millions)...................248
Table5.3.3BusinessInternetaccessandtransportservicerevenues,bytypeofservice($millions)249
ii Subscriberdata................................................................................................................................249
Table5.3.4ResidentialInternetservicesubscribers,bytypeofserviceprovider(thousands)...........249
Figure5.3.1ResidentialInternetservicesubscribermarketshare,bytypeofserviceprovider(%)...250
Table5.3.5NumberofbusinessInternetaccesssubscriptions,bytypeofserviceprovider(thousands)
..............................................................................................................................................................250
Figure5.3.2HighspeedresidentialInternetservicesubscribers,byGBdatatransfer
(upload/download)capacityincludedinsubscriptions.......................................................................251
Table5.3.6Weightedaverageuploadanddownloadusage(GBs)ofresidentialhighspeedInternet
subscribers...........................................................................................................................................251
iii Performanceindicators....................................................................................................................252
Table5.3.7ResidentialInternetaccessserviceaveragerevenueperuserpermonth(ARPU),($).....252
Table5.3.8ResidentialInternetserviceonemonthaveragerevenue,byadvertiseddownloadspeed
($).........................................................................................................................................................252
Table5.3.9Weightedaverageupload/downloadlimits(GBs)ofresidentialInternetserviceplans,by
advertiseddownloadspeed.................................................................................................................253
Table5.3.10ResidentialInternetserviceuploadspeed(Kbps)byadvertiseddownloadspeedand
averageadvertiseddownloadspeed...................................................................................................253
24
ListoftablesandfiguresCMR2016
iv Price..................................................................................................................................................253
Figure5.3.3Priceofresidentialbroadband(5Mbps)Internetaccessserviceandnumberof
companiesprovidingthisserviceinurbancentres,2015....................................................................254
Figure5.3.4Pricecomparisonofresidentialbroadband(5Mbps)Internetaccessserviceandnumber
ofcompaniesprovidingthisserviceinurbanandruralcommunities,2015.......................................256
v Consumertrends..............................................................................................................................257
Table5.3.11ResidentialInternetserviceonemonthrevenuedistribution(%),byadvertiseddownload
speed....................................................................................................................................................257
Table5.3.12ResidentialInternetserviceonemonthsubscriberdistribution(%),byadvertised
downloadspeed...................................................................................................................................258
vi Competitivelandscape.....................................................................................................................259
Figure5.3.5BroadbandsubscriptionsIncumbentTSPsvs.cablebasedcarriers(millions)..............259
Figure5.3.6Internetaccessservicerevenueshares,bymarketandbytypeofserviceprovider,2015
(%)........................................................................................................................................................260
Figure5.3.7BusinessInternetaccessservicerevenuesbyaccesstechnology,2011vs.2015(%).....260
Figure5.3.8ResidentialInternetaccessservicesubscriptionsbyaccesstechnology,2011vs.2015.261
vii Capacityrequirements.....................................................................................................................262
Table5.3.13Listofrangesfordatausagemeasurementcalculations................................................263
Figure5.3.9Datausage(gigabytes)perhourofstreaming,perbitraterange...................................264
viii Keyindicators...................................................................................................................................265
Table5.3.14Keytelecommunicationsavailabilityindicators(%ofhouseholds)................................265
Figure5.3.10Broadbandserviceavailabilityvs.subscriptionsbyprovince/territory,2015...............266
Figure5.3.11Broadbandservice,5Mbpsavailability(%ofhouseholds)............................................267
ix Broadbandserviceavailability.........................................................................................................268
Figure5.3.12Broadbandserviceavailabilitybyspeed(%ofhouseholds)..........................................268
Table5.3.15Broadbandserviceavailabilityinruralareas,bydownloadspeedandnumberof
platforms(%ofhouseholds),2015......................................................................................................268
Table5.3.16Broadbandserviceavailability,byspeedandprovince/territory(%ofhouseholds),2015
..............................................................................................................................................................269
Figure5.3.13BroadbandserviceavailabilityUrbanvs.rural(%ofhouseholds),2015....................270
Table5.3.17AdoptionofvariousvideotechnologiesinCanada(%ofhouseholds)...........................271
Figure5.3.14ISPsfoundontheCRTCsonlinesearchtoolYouhavechoicesbyprovince..............271
25
ListoftablesandfiguresCMR2016
5.4 Dataandprivatelineretailsector............................................................................................273
i Revenues..........................................................................................................................................275
Table5.4.1Dataandprivatelineretailrevenues($millions)..............................................................275
Table5.4.2Retaildataservicerevenues,byclassificationofdataprotocolused($millions)............275
Table5.4.3Privatelineretailrevenues,bytypeofserviceprovider($millions)................................275
ii Competitivelandscape.....................................................................................................................276
Figure5.4.1Retaildataandprivatelinerevenuemarketshare(%),byTSP.......................................276
Figure5.4.2Retaildataservicerevenuemarketshare(%),byTSP.....................................................276
Table5.4.4Retaildataservicerevenuemarketshare(%),byserviceproviderandbyclassificationof
dataprotocolused...............................................................................................................................277
Table5.4.5Retailprivatelinerevenuemarketshare(%)....................................................................277
5.5 Wirelessretailsector...............................................................................................................279
i Revenues..........................................................................................................................................281
Figure5.5.1Wirelessservicerevenueandsubscribergrowthrates(excludingpaging).....................281
Table5.5.1Retailwirelessandpagingservicerevenues($millions)..................................................282
Table5.5.2Retailwirelessandpagingservicerevenuecomponents($millions)...............................282
Table5.5.3Prepaidandpostpaidretailwirelessservicerevenues(basicvoice,longdistance,anddata)
($millions)............................................................................................................................................283
Figure5.5.2Roamingrevenues,bytypeanddestination,2015..........................................................283
ii Subscriberdata................................................................................................................................284
Table5.5.4Numberofwirelessandpagingservicesubscriptions(thousands)..................................284
Table5.5.5Postpaidwirelessservicesubscribersasapercentageoftotalwirelessservicesubscribers
(%)........................................................................................................................................................284
Figure5.5.3Percentageofwirelessservicecontracts,byduration.....................................................284
Figure5.5.4TotalanddailynumberofMMSandSMSmessages.......................................................285
Table5.5.6AveragemonthlySMS/MMS(messages/month)anddata(MB/month)usage...............285
Table5.5.7Averagerevenueper1GBdata/month($).......................................................................286
iii Competitivelandscape.....................................................................................................................286
Figure5.5.5TSPswirelesssubscribermarketshare...........................................................................286
Figure5.5.6TSPswirelessservicerevenuemarketshare...................................................................287
Figure5.5.7Percentageofrevenuesandsubscribersderivedviaprimarybrands,extensionbrands,
andresellers/rebillers..........................................................................................................................288
Table5.5.8Wirelessservicesubscribermarketshare,byprovinceandterritory(2015)(%).............289
26
ListoftablesandfiguresCMR2016
Table5.5.9Averagemonthlychurnrates(%)......................................................................................289
iv Technologyindicators......................................................................................................................290
Figure5.5.8Mobiledevicepenetration...............................................................................................290
Table5.5.10Mobiledevicepenetration,bylinguisticgroup(%).........................................................290
Figure5.5.9Mobiledevicepenetration,byregion,2015....................................................................291
Table5.5.11Numberandpercentageofsubscriberswithadataplan,byprovinceandterritory.....292
Figure5.5.10Mobiledataonlyplanrevenuesandsubscribers,bydataplancapacity,2015............293
Figure5.5.11Percentageofmobilerevenuesfromvoicevs.voiceanddatavs.dataonlyplans,2015
..............................................................................................................................................................293
Table5.5.12Mobilebroadbandsubscribersbytypeofplan...............................................................294
Figure5.5.12Percentageofmobilesubscriber,bytypeofplans,2015..............................................294
Figure5.5.13PopularInternetandmobileactivitiesperformedbyCanadiansontheirsmartphone,
2015......................................................................................................................................................295
Figure5.5.14PopularInternetandmobileactivitiesperformedbyCanadiansontheirtablet,2015296
v Performanceindicators....................................................................................................................297
Table5.5.13Averagewirelessservicerevenuepersubscriber...........................................................297
Table5.5.14Averagewirelessservicerevenuespersubscriber,byprovinceandterritory(excluding
paging)($)............................................................................................................................................297
vi Price..................................................................................................................................................298
Figure5.5.15PriceofaLevel1basketwirelessservice($/month)andnumberofcompaniesproviding
theserviceinanumberofselectcities,2015......................................................................................299
Figure5.5.16PriceofaLevel2basketwirelessservice($/month)andnumberofcompaniesproviding
theserviceinanumberofselectcities,2015......................................................................................300
Figure5.5.17PriceofaLevel3basketwirelessservice($/month)andnumberofcompaniesproviding
theserviceinanumberofselectcities,2015......................................................................................301
Figure5.5.18PriceofaLevel4basketwirelessservice($/month)andnumberofcompaniesproviding
theserviceinanumberofselectcities,2015......................................................................................302
Figure5.5.19PriceofaLevel1basketwirelessservice($/month)andnumberofcompaniesproviding
theserviceinurbancentresandruralcommunities,2015.................................................................304
Figure5.5.20PriceofaLevel2basketwirelessservice($/month)andnumberofcompaniesproviding
theserviceinurbancentresandruralcommunities,2015.................................................................305
Figure5.5.21PriceofaLevel3basketwirelessservice($/month)andnumberofcompaniesproviding
theserviceinurbancentresandruralcommunities,2015.................................................................306
27
ListoftablesandfiguresCMR2016
Figure5.5.22PriceofaLevel4basketwirelessservice($/month)andnumberofcompaniesproviding
theserviceinurbancentresandruralcommunities,2015.................................................................307
vii Coverage/availabilitydetails............................................................................................................308
Figure5.5.23Wirelesscoverage,penetration,andARPUbyprovinceandterritory,2015................308
Figure5.5.24Roamingvoiceanddatatrafficbydestination,2015.....................................................308
Table5.5.15Wirelesscoverage,penetration,andaveragerevenuepersubscriber,byprovinceand
territory,2015......................................................................................................................................309
Table5.5.16Percentageofpopulationcoveredbynumberofdifferentwirelessnetworks,byprovince
andterritory,(%),2015........................................................................................................................309
Figure5.5.25Establishedcarrierscoverageandpenetrationvs.newentrantscoverageand
penetration,(%ofpopulation),2015...................................................................................................310
Figure5.5.26NumberofWiFihotspotlocationsandmobilebroadbandpenetration,2015..............311
Figure5.5.27NumberoffreeandpayforuseWiFihotspotlocationsinCanada,2015.....................312
Map5.5.1WirelessserviceavailabilitybynumberoffacilitiesbasedWSPs,2015.............................313
Map5.5.2WirelessHSPA+serviceavailabilitybyincumbentandnewentrantfacilitiesbasedWSPs,
2015......................................................................................................................................................314
Map5.5.3WirelessLTEserviceavailabilitybetween2013and2015..................................................315
5.6 Wholesaletelecommunicationssector....................................................................................317
i Revenues..........................................................................................................................................319
Table5.6.1Wholesaletelecommunicationsrevenues($billions).......................................................319
Table5.6.2Wholesaletelecommunicationsrevenues,bymarketsector($millions)........................319
Figure5.6.1Wholesaletelecommunicationsrevenues,bymarketsector..........................................320
Figure5.6.2Percentagedistributionofwholesaletelecommunicationsrevenues,bymarketsector
(2011vs.2015).....................................................................................................................................321
Table5.6.3Localwholesaletelecommunicationsrevenues,bymajorcomponent($millions).........321
Table5.6.4Localwholesaletelecommunicationsrevenues,byprovince($millions)........................322
Figure5.6.3WholesaleHSAbasedsubscriptionsacrossCanada,2015...............................................323
Table5.6.5Internetrelatedwholesalerevenues,bytypeofservice($millions)...............................324
Table5.6.6WholesaleHSArevenues,byservicecomponent($millions)...........................................324
Table5.6.7DSLandcablewholesalehighspeedaccess,bytypeofservice(thousands)...................325
Figure5.6.4WholesaleHSAenabledsubscriptions,byservicespeedinMbps(thousands)...............325
Table5.6.8Dataprotocolwholesalerevenues,byservicecategory($millions)................................326
Table5.6.9Wirelessmobilewholesalerevenues,bytypeofservice($millions)...............................326
28
ListoftablesandfiguresCMR2016
ii Subscriberdata................................................................................................................................327
Table5.6.10Localandaccesslines,bytypeofTSP(thousands).........................................................327
iii Competitivelandscape.....................................................................................................................327
Table5.6.11Wirelinewholesaletelecommunicationsrevenuemarketshare,bytypeofTSP(%).....327
Table5.6.12Localandaccessrevenues,bytypeofTSP($millions)...................................................327
Table5.6.13Longdistancerevenues,bytypeofTSP($millions)........................................................328
iv Forbearance.....................................................................................................................................329
Figure5.6.5Telecommunicationswholesaleservicerevenues,bytypeoftariff,2015(%)................329
Figure5.6.6Telecommunicationswholesaleservicerevenues,bytypeofservice,2015(%).............330
Table5.6.14Percentageoftelecommunicationswholesalerevenuesgeneratedbyforborneservices
(%)........................................................................................................................................................330
v Interproviderexpenses...................................................................................................................331
Figure5.6.7Interproviderexpensesperrevenuedollarforwirelineservices,2014and2015.........331
29
ListoftablesandfiguresCMR2016
30
ExecutiveSummaryCMR2016
ExecutiveSummary
TheCommunicationsMonitoringReport(CMR)offersacomprehensiveviewofthecommunications
servicessectorinCanada.Specifically,itprovidesCanadians,industryandstakeholderswith
meaningfulinformationtohelpthembetterunderstandthecommunicationsindustryand
participateintheCRTCsproceedings.
i Keytrendsinthecommunicationsindustry
Overall,communicationsindustryrevenuesreached$65.7billionin2015,upfrom$64.1billion
in2014.Therevenuegrowthrateof2.5%between2014and2015isslightlyabovethefiveyear
averagegrowthof2.1%.RevenueincreasesformobileandInternetserviceswereoffsetby
decreasesinconventionaltelevisionandhometelephoneservicerevenues.
In2015,telecommunicationsservicerevenuesrepresented73%ofoverallcommunications
servicerevenues.Totaltelecommunicationsservicerevenuesreached$47.8billion,andgrewby
4.1%since2014,whilebroadcastingservicerevenuesdecreasedto$17.9billion,a1.6%drop
from2014.
Thewirelessservicemarketsectorrepresentsmorethanhalf(51%)ofallretail
telecommunicationsservicerevenues.Thewirelessservicemarketsectoristhelargestsingle
retailtelecommunicationsservicesector,andhasgrownmorethananyothersectorsince2008.
Specialtyservicesreportedprogram&productionexpensesof$2.0billionin2015,upby$107.6
million(5.7%)from2014.Specialtyservicesprogramandproductionexpenseswerecomposed
of$54.9millioninProductionExpenditures;$434.2millioninNonCanadianProgramming
Expenditures;and$1.5billioninCanadianProgrammingExpenditures(CPE).
RevenuesforcableandIPTVcompaniescontinuedontheirupwardtrendandtotaled$6.6
billionin2015.Thisrepresentedanincreaseof$113.5million(1.7%)since2014andof$702.6
million(11.9%)since2011.Bycontrast,therevenuesofsatellitecompanieshavebeenona
downwardtrendsince2012,recordingthelargestlossesoverthepasttwoyears.They
generatedrevenuesof$2.2billionin2015,down5.2%from2014.
Thefivelargestcompaniesaccountedfor82%ofoverallcommunicationsrevenuesin2015,
relativelyunchangedfrom2014.
Averagemonthlyhouseholdspendingoncommunicationsservicesincreasedfrom$212in2013
to$215in2014.Thelargestmonthlyspendingincreasewasonmobileservices,from$79in
2013to$83in2014.MostofCanadiansspendingoncommunicationsserviceswenttomobile
wirelessservices(38%),followedbyhometelevisionservices(26%),Internetservices(20%),and
hometelephoneservices(16%).
YoungerCanadiansspendmorethanthreetimestheamountonmobilewirelessservicesthan
otherCanadians.Canadiansunder30yearsofagespendthemostonmonthlymobilewireless
services($114.42),whilethelowestspenders,Canadiansaged65yearsandolder,spend$33.50
amonthonmobileservices.
31
ExecutiveSummaryCMR2016
ii Deviceownershipanddataconsumptionareincreasinglypopular
amongCanadians
Themigrationtowardswirelessservicescontinues,asmoreCanadianhouseholdssubscribed
exclusivelytomobilewirelessservices(23.7%)thantoexclusivelywireline(i.e.landline)
telephoneservices(13.6%).Similarly,moreCanadianhouseholdsalsoreportedsubscribingto
mobiletelephoneservices(85.6%)thantolandlinetelephoneservices(75.5%).
Canadiansalsocontinuedtomovetowardsbroadbandmobileservices.Mobilebroadband
servicesubscriberscontinuedtopoststronggains,withover22millionsubscriptionstomobile
broadbandservicesin2015,comparedto19.3millionin2014,and13.2millionin2011.
Thenumberofwirelessservicesubscribersincreasedtonearly30millionin2015.Subscriber
growthincreased3.4%in2015,comparedto1.5%in2014.
WirelessandInternetdatausageisgrowing.Wirelessdatausageincreased44%from2014to
2015,whilefixedInternetdatausageincreasednearly40%forthesameperiod.Approximately
70%ofwirelessdatasubscribershaveplansthatprovideforatleast1GBofdatausageper
month.
In2015,servicecontractsthatexceeded2yearsaccountedforonly14%ofallcontractlengths,
comparedto33%in2014,and56%in2013.
Almostthreequarters(73%)ofCanadiansaged18andoverownedasmartphonein2015.This
representsanincreaseof7%over2014andanincreaseof36%since2011.
LTEcoveragereachesover97%ofthepopulation,whileHSPA+isavailabletoover99%ofthe
population.
Tabletownershipcontinuedtoincrease,asmorethanhalf(52%)ofCanadiansownedatabletin
2015.In2014,49%ofCanadians18yearsofageandolderreportedowningatablet,compared
to10%in2011.
Morethan80%ofCanadianhouseholdshaveaccesstobroadbandservicespeedsofatleast
50Mbps.
ResidentialhighspeedInternetservicesubscribersdatadownloadusageincreased40%from
2014,andover50%,onaverage,from2010to2015.
iii CanadianscontinuetowatchTV
InternetTVviewingcontinuedtoincreasein2015.Weeklyusersof18yearsofageandolder
watched5.8hoursofInternetTVonaweeklybasis,comparedto1.5hoursin2008.
TraditionalTVviewingtimeremainedrelativelystable,decreasingbyonly0.2hoursfrom2014
to2015.Canadians(aged2andover)watched,onaverage,27.2hoursoftraditionaltelevision
perweekduringthe20142015broadcastyear,comparedto27.4hoursin20132014,and
28.5hoursin20102011.
YoungerCanadianswatchedsignificantlylesstraditionaltelevisionthanotherCanadians.On
average,Canadians18to34yearsofagewatchedlessthanhalfthenumberofhoursof
traditionaltelevision(19.7)asCanadians65yearsofageandolder(42.0).
IPTVservicerevenuescontinuedtosoar.IPTVserviceproviderspostedrevenuesof
approximately$1.6billionin2015,up$273millionor21%from2014.
32
ExecutiveSummaryCMR2016
iv Theuseofstreamingmusicservicescontinuestogrow
Canadiansuseofstreamingmusicservicesisgrowing.In2015,55%ofCanadiansstreamed
musicvideosonYouTube,23%streamedAM/FMradioonline,20%streamedpersonalized
onlinemusic,and22%listenedtopodcasts.
In2015,16%ofCanadians18yearsofageandoldersubscribedtosatelliteradioservices.This
figureisunchangedfrom2014.
Privatecommercialradiocontinuedtoexperienceslightdecreases.Commercialradiostations
reportedaslightdecreaseinrevenues,from$1.61billionin2014to$1.60billionin2015.
33
ExecutiveSummaryCMR2016
34
Section1.0CMR2016
1.0 Introduction
35
Section1.0CMR2016
i PurposeoftheCommunicationsMonitoringReport
Overthelastfewdecades,communicationstechnologyhasundergoneradicaltransformations.Canadians
nowhaverealtimeaccesstoaworldofinformationandentertainmentacrossamultitudeofplatforms.They
relyontheircommunicationssystemtocreatemeaningfulcontent,contributetoCanadaseconomyand
democracy,andconnectwiththeirfriends,familiesandcommunities.AsCanadiansadapttotechnological
change,theCanadianRadiotelevisionandTelecommunicationsCommission(CRTC)willcontinueto
superviseandregulateinaresponsible,measured,andintelligentwayinthepublicinterest.
TheCommissionsCommunicationsMonitoringReportisatoolforanalyzingtheevolvingstateofCanadas
communicationsystem.Itisdesignedtosupportevidencebasedpolicydevelopment,decisionmaking,and
openpublicdiscussionofbroadcastingandtelecommunicationsregulatorypoliciesandissues.The
Commissioninvitespartiestousethedatainthisreporttoenrichtheirparticipationinitsregulatoryand
policyactivities.
ii Scopeandstructureofthisyearsreport
The2016CommunicationsMonitoringReportcapturesawiderangeofinformationonfinancialperformance,
industrycharacteristics,Canadianprogrammingexpenditures,servicepricesandavailabilityacrossCanada,
andmanyothercommunicationsrelatedsubjects.
Buildingonrecenteffortstoprovideaconciseoverview,Section2.0highlightskeytrendsandinformation
directlyrelevanttoCanadiansascitizens,consumers,andcreators.Thissectionprovidesageneralsummary
ofthosekeytrendsandofmarketperformanceandcompetition,pricing,andaccessacrossallservices.
Subsequentsectionsoffermoregranularsectorlevelinformation.
Section3.0surveysCanadascommunicationsindustryasawhole,focusingonsuchcharacteristicsasmarket
participantsandthenumberoffirmsoperatingacrosstheCanadiancommunicationsindustry.Theremaining
sectionsprovideinformationonspecificmarkets,offeringanindepthviewforthoseseekinggranulardata.
Forexample,Sections4.0through4.3arededicatedtoradio,televisionandbroadcastingdistribution
markets,featuringarangeofdataonaudiencemeasurement,programmingcontributionsandexpenditures,
andserviceavailability.Sections5.0through5.6pertainstoCanadastelecommunicationssectorand
addressesretailandwholesaleInternet,wirelinetelephone(i.e.,landlines),wireless,anddataandprivate
lineservices.
36
Section1.0CMR2016
iii Changestothe2016report
TheCRTCseekstoenhancetherelevanceofthereporttotakeintoaccountemergingtechnologies,
consumptionpatternsandbusinessmodelsinadditiontosheddingmorelightonexistingservices.
Additionsandchangesforthe2016CommunicationsMonitoringReportincludethefollowing:
Newdataonmonthlyhouseholdspendingbyagegrouphasbeenaddedtosection2.0.
Inpreviousyears,householdspendingfigureswereprojectionsderivedfromStatistics
Canadadata.Startingthisyear,datafromthesurveyofhouseholdspendingisusedinstead
ofprojections.Asaresult,householdexpendituredatareportedthisyeardiffersfromthe
datainpreviousmonitoringreports.
CBCstotalbroadcastingrevenuesarenowincludedinbothsection4.1(radiosector)and
section4.2(televisionsector).
Newbroadcastingdisputeresolutionstatisticsonthenumberandtypeofdisputeresolution
instanceshavebeenaddedtoSection4.3.DisputeresolutioninstancesrangefromCRTC
staffassistedmediation,finalofferarbitrationtoinformalinterventionsbetween
broadcastingdistributorsand/orprogrammingservices.BDUrevenuesandsubscribersin
thissectionnolongerincludeestimatesfornonreportingentities.
Section5.2(wirelinevoiceretailsector)nolongerreportsoutofterritorydataseparately
givenitssmallshareofthetotalmarket.
Thebroadbandmeasurementdatapresentedinsection5.3hasbeenmodifiedtoinclude
usagedataonawiderrangeofapplications,includingvideocallingandlivestreaming
applications.
Section5.5(wirelessretailsector)nowincludesdataonaveragerevenuefordownloading
data.
Greateremphasisonprovincialandregionalbreakdownsaswellasresidentialandbusiness
breakdownscanbefoundthroughoutthereport.
ThesechangeswillprovideCanadianswithimprovedindicatorsandtrendstofurtherenhancetheir
understandingofthecommunicationssector.
37
Section1.0CMR2016
38
Section1.1CMR2016
1.1 TheCRTC
39
Section1.1CMR2016
i Whoweareandwhatwedo
TheCanadianRadiotelevisionandTelecommunicationsCommission(CRTC)isanadministrativetribunal
withintheGovernmentofCanadathatisresponsibleforregulatingandsupervisingCanadascommunication
systeminthepublicinterest.
TheCRTCoperatesunderanumberoflegislativeauthoritiesandActsofParliament.Theseincludethe
following:theCRTCAct,theBellCanadaAct,theBroadcastingAct,theTelecommunicationsAct,Canadas
AntiSpamLegislationandtheCanadaElectionsAct,whichincludesprovisionsthatestablishedtheVoter
ContactRegistry.
AttheheartofourmandateisthedutytoservethepublicinterestbyputtingCanadiansatthecentreofthe
communicationssystem.Tothisend,ourroleencompassesconsultingCanadiansoncommunicationsissues
ofimportancetothem,dealingwiththemanyapplicationswereceivebymakingdecisionsandrules,
respondingtoenquiriesandcomplaints,aswellasreportingtoCanadiansontheprogressandoutcomesof
ourwork.TheCRTCpromotesandenforcescompliancewithitsregulatorypoliciesanddecisions.It
encouragesandfacilitatesindustrycoregulationandselfregulationthroughconsultations,committeesand
workinggroupswithvariousindustrystakeholders.TheCRTCalsoplaysakeyroleinresolvingindustry
disputes.Finally,inthecurrentdynamicandevolvingcommunicationsenvironment,theCRTCcollaborates
withvariousdomesticandinternationalstakeholderstoleveragecapacityandintelligenceonahostof
interrelatedpolicyissuesandquestions.
FormoreinformationontheCRTCsmandate,mission,andactivitiespleaseconsulttheCRTCsthreeyear
planathttp://www.crtc.gc.ca/eng/backgrnd/plan2016/plan2016.htm.
40
Section2.0CMR2016
CanadasCommunicationSystem:AnOverviewfor
Canadians
41
Section2.0CMR2016
TheCRTCcontinuestostrengthenitseffortstoplaceCanadiansatthecentreofthecommunicationsystem,
whetherasconsumersofcommunicationsproductsandservices,creatorsanddistributorsofcontent,or
citizenswhoneedaccesstoinformation,productsandservicestofullyengageinademocraticsociety.This
sectionfocusesonCanadiansuseofcommunicationservices,competition,householdexpenditures,and
accesstocommunicationsservices.1
MoreCanadianhouseholdssubscribeexclusivelytomobilewirelessservices(23.7%)thanexclusivelyto
wirelinetelephoneservices(13.6%).Subscriptionstowirelinetelephoneservicescontinuetodecreaseeach
year,whilemobilewirelessservicesubscriptionsareincreasing.
WhilethemajorityofCanadiansstillownandusewirelinephones,thedataconfirmstheslowandsteady
shiftawayfromthistechnologyinfavourofwirelessservices.Indeed,moreCanadianhouseholdshave
mobilephones(85.6%)thanlandlines(75.5%)abigchangefromonlytenyearsago,whenjustoverhalfof
Canadianhouseholdssubscribedtomobilephones(62.9%)andalmostallsubscribedtolandlines(94.0%).
Canadiansembracemobilewirelessservices,amoreprecisepictureemergeswhenexaminingthistrend
acrossincomequintiles.Forinstance,wirelessonlyhouseholdsaremostprominentamongthetwolowest
incomequintiles(seeTable2.0.7).Thissuggeststhattheriseofmobileonlyhouseholdsdoesnotsolely
reflectchangingpreferencesbutmayalsobedrivenbyaffordability.
In2014,Canadianhouseholdspaidanaverageof$214.75permonthfortheircommunicationsservices,an
increaseof$3.00(or1.4%)from2013.
Canadianhouseholdscurrentlyspendmorepermonthonwirelessservices($82.67)andBDUservices
($56.33)comparedtoInternetservices($42.42)andwirelinetelephoneservices($33.33).
Therearecleardifferencesacrosshouseholdincomequintiles.Householdsinthetwohighestincome
quintilesspendmorethantwiceasmuchonmobilewirelessservicesthanthoseinthelowestincome
quintileapatternthatroughlyholdsforcableandDTHsatellitetelevisionandInternetservices.Inthecase
oflandlines,spendingremainsrelativelyevenlydistributedacrossincomequintiles.
1Datasources:BothCRTCandStatisticsCanadadataarepresentedinthissection.CRTCinformationpresents
2015data,whileStatisticsCanadasSurveyofHouseholdSpendingreflectsmostrecentlyavailabledatafrom
2014.
42
Section2.0CMR2016
i Industrylandscapeandcompetition
Canadascommunicationsystemiscomposedoftwobroadsectors:broadcastingandtelecommunications.
Totalcommunicationsrevenuesincreasedby2.5%since2014.However,thisoverallgrowthmasksimportant
divergencesacrossindividualtypesofservices.Whiledetailedfinancialinformationcanbefoundinseparate
sectionsofthisreport,thissectionoffersahighleveloverviewofindustryrevenuesandthecompetitive
landscapeinthebroadcastingandtelecommunicationsindustries.
Table2.0.1Annualcommunicationsserviceindustryrevenues($billions)
Growth2014
Categories 2013 2014 2015
2015(%)
Communications 62.8 64.1 65.7 2.5
Broadcasting 18.0 18.2 17.9 1.6
Radio 1.9 1.9 1.9 1.2
TV 7.3 7.4 7.1 3.4
BDU 8.8 8.9 8.9 0.1
Telecommunications(retailandwholesale) 44.8 45.9 47.8 4.1
Wirelinevoice(localandlongdistance) 10.6 10.1 9.7 4.0
Internet 8.2 8.9 9.8 10.3
Dataandprivateline 4.8 4.8 4.6 2.8
Wireless(localandlongdistance) 21.2 22.0 23.6 7.6
Source:CRTCdatacollection
WhatareBDUs?Broadcastingdistributionundertakings(BDUs)providesubscriptiontelevision
servicestoCanadians.Theyredistributeprogrammingfromconventionalovertheairtelevisionand
radiostations.Theyalsodistributepayaudioanddiscretionaryservices(i.e.pay,specialty,payper
view(PPV)andvideoondemand(VOD)).MostBDUsarecable,nationalDTHsatellite,orInternet
protocoltelevision(IPTV)serviceproviders.
Telecommunicationsservicesremaindominant
In2015,revenuesfromtelecommunicationsservicescontinuedtocaptureapproximately73%ofall
communicationsservicerevenues,withbroadcastingservicerevenuesrepresentingtheremaining27%.This
speaksinparttothescaleofrevenuesfrommobilewirelessservices,whichaccountedfornearlyhalfofall
telecommunicationsservicerevenues.Indeed,mobilewirelessservicesalonegeneratedmorerevenuesthan
theentirebroadcastingsector.
Asnotedabove,moreCanadiansnowsubscribeexclusivelytomobilewirelessservicesthantowireline
telephoneservices.Thisreflectsfinancialdatatrendsthatdemonstraterelativelyconsistentmobileservice
revenuegrowth.
Asimilarphenomenononeinwhichcertainservicesdriveoverallsectorgrowthwhileotherservicesremain
flatorshrinkhasemergedacrossmultiplesubsectorsofthecommunicationsystem.Servicesintroducedin
theearlytomid20thcentury,includingwirelinevoiceservices,conventionaltelevisionservices,andradio
43
Section2.0CMR2016
servicescontinuetobewidelyusedbymanyCanadians.However,theseservicesrevenueshavenotgrown
atthesamepaceasthoseofnewerservices;inmanycases,theyhaveevendeclined.
Aconcentratedmarket
Thecompetitivelandscapeinthecommunicationsystemasawholeremainsmostlyunchangedfromlast
year.Largeverticallyandhorizontallyintegratedentitiesholddominantmarketpositions.AsFigure2.0.1
indicates,thetopfivebroadcastingandtelecommunicationsgroups/entities(BellCanada,Qubecor,Rogers,
TELUS,andShaw)togetheraccountedforapproximately82%oftotalindustryrevenues,consistentwith
2014.
Figure2.0.1Percentageoftotalcombinedrevenues,bybroadcastingandtelecommunicationsownershipgroups
10 10 10 9 8 8
Bundling
Thismarketconcentrationplaysaroleintheriseofbundling,sincethelargestentitiesarewellpositionedto
offertheircustomersdiscountsinexchangeforsubscribingtoarangeofservices.Thetablebelowshowsthe
numberofsubscriptionstotwoormoreserviceswithonecompany.From2011to2013,thenumberof
subscriptionstobundledservicesincreasedfrom9.4millionto10.4million.Followingastagnationofthe
numberofbundledsubscriptionsfrom2013to2014,aslight1.9%decreaseinthenumberofbundled
servicesubscriptionsoccurredin2015,showingthatthemarketmighthavereacheditssaturationpointin
2014.
44
Section2.0CMR2016
Table2.0.2Numberofsubscriptionswithbundledservices(millions)
20112015
2011 2012 2013 2014 2015
CAGR2(%)
Numberofsubscriptionswith
9.4 10.0 10.4 10.4 10.2 2.1
bundles
Growth(%) 6.4 6.3 4.1 0.0 2.2 n/a
Source:CRTCdatacollection
ii Communicationsserviceexpendituresandprices
TheamountsthatCanadianhouseholdsspendoncommunicationsservicesprovideanimportantperspective
onhowcommunicationsservicesimpactthehouseholdbudget.Thesedataalsopoint,toacertainextent,to
nationalshiftsindemandandthecompetitivelandscape.
However,itisimportanttorecognizethelimitationsofexpendituredata.First,itmayoverlookthefactthat
certainfreeservices,suchasovertheairtelevisionandradioservices,remainvaluabletoCanadians.Second,
theaverageexpenditureamounttakesintoaccountallhouseholds,includingthosethatdonotsubscribeto
oneormoreservices.Asaresult,expendituresforhouseholdsthatpurchaseservicesmayappearloweror
higherthantheyactuallyare.
Spendingoncommunicationsservicescontinuestorise3
Throughout2014,theaverageCanadianhouseholdspent$214.75permonthoncommunicationsservices,
anincreaseof$3.00(1.4%)over2013.Table2.0.3demonstratesthatmuchlikeitisthecasefortelecom
industryrevenues,mobileandinternetservicesaredrivinghouseholdexpendituresgrowth.
TheincreaseinoverallcommunicationsspendingwasledbyspendingonwirelessandInternetservices
whichincreased4.8%and4.3%,respectively.Theseincreasesreflecttheobservedtrendsinsubscriptionsto
higherinternetspeedsandmobileplanswithmoredata.
Canadianscontinuedtoallocatethesmallestproportionoftheirhouseholdcommunicationsservice
expenditurestolandlinetelephonyservice,whichfellfrom$35.58permonthin2013to$33.33permonthin
2014,areductionof6.3%.Overall,cellphoneownershipratesrosefromatotalof84.7%in2013to85.6%in
2014,comparedtoonly75.5%ofCanadianswhoownedalandlinein2014,downfrom79.1%in2013(see
Figure2.0.7).
WhilethereisconsiderablevariancebetweentheaverageamountsspentbyCanadiansineachincome
quintile,householdstendedtodevotemoreoftheircommunicationsbudgettoeithermobilewireless
servicesorcableIPTVandDTHsatelliteservices.In2014,spendingwasgreatestonmobilewirelessservices
acrossallincomequintiles.
2
Compoundannualgrowthrate
3
TheinformationpresentedonhouseholdcommunicationsexpenditurescomesfromStatisticsCanadasSurveyof
HouseholdSpendinganddoesnotincludeanyprojectionsorCRTCdata.
45
Section2.0CMR2016
Althoughspendingoncommunicationsservicesbylowerincomehouseholdswaslessthanthatbyhigher
incomehouseholds,asshowninTable2.0.3,expendituresoncommunicationsservicestakeupasignificantly
largerpercentageoftheirannualincomesasTable2.0.4shows.
Table2.0.3Monthlyhouseholdspendingoncommunicationservices,byserviceandbyincomequintile
($/month/household)
Average CAGRof
First Second Third Fourth Fifth averageofall
Service Year ofall quintiles
quintile quintile quintile quintile quintile
quintiles 20102014
AlldatainTable2.0.3wascollectedandanalyzedtoshowthegrowthpercentagesbetween2013and2014.
Theexpendituredatapresentsperhouseholdexpenditureaverageandexcludessalestax.
Onaverage,forallincomequintiles,spendingonwirelineserviceshavecontinuouslydeclinedfrom2010to
2014,atacompoundannualgrowthrate(CAGR)of5.98%.Inopposition,averagewirelessservice
expendituresforallincomequintilesgrewby4.75%between2013and2014andhavea2010to2014CAGR
46
Section2.0CMR2016
of7.93%.Althoughhouseholdspendingoncommunicationsservicesincreasedacrossallincomequintiles,
householdsinthehighestquintilesarespendingmoreoncommunicationsservicescomparedtothoseinthe
lowerquintiles.Nevertheless,thegrowthrateisgenerallyhigherinthelowerincomequintiles.Forexample,
Internetservicespendinginthefirstincomequintilegrew15.31%since2013.
Table2.0.3alsoshowsadeclininggrowthrateforcableandDTHserviceexpendituresinthehigherincome
quintiles,morespecifically,inthethird,fourth,andfifthquintiles.Overall,totalspendinggrew1.42%
between2013and2014,andtheoverallCAGRbetween2010and2014was3.43%.
Table2.0.4Householdspendingoncommunicationservices,byincomequintile,2014
BasedonStatisticsCanadasSurveyofHouseholdSpending(datafor2014),theaveragehouseholdannual
incomebeforetaxesinCanadawas$86,360.TheCanadianprovincialaveragehouseholdannualincome
beforetaxesrangedfrom$71,164to$118,680.Albertahadthehighestaveragehouseholdincomebefore
taxesfollowedbyOntarioat$89,217.
Fromtheperspectiveofperhouseholdincomequintiles(each20%ofhouseholdsbyaverageannual
income),thefirstincomequintilehasanaverageannualincomeof$19,664.Thisquintilehadanaverageof
1.50membersperhousehold.Thehighestincomeinthisquintilewas$30,519.Thethirdincomequintilehad
anaverageannualincomeof$67,083andanaverageof2.51membersperhousehold.Thehighestincomein
thisquintilewas$81,294,anincreasesincelastyearshighestincomeof$79,722.Thetop20%ofhouseholds
hadannualincomesover$124,839.Thisincomequintilehadanaverageannualincomeof$201,752andan
averageof3.40membersperhousehold.
Comparedtodatafrom2013,theaveragenumberofmembersperhouseholddecreasedby0.01.However,
therewasasignificantincreaseinincomesperquintile.Thefirstquintilerangewastheonlyonetodecrease
from$30,668to$30,519.Thesecond,third,andfourthquintilerangesincreasedby$1,470,$1,572,and
$3,541,respectively.
47
Section2.0CMR2016
Figure2.0.2Monthlyhouseholdexpenditures,byserviceandbyageofreferenceperson($/month/household),
2014
Monthlyhouseholdexpenditures($/month/household),2014
$250.42
250
$217.83 34.83 $219.50
$207.17
11.17 22.50
200 40.33
47.92
$167.00
43.83 47.67
42.67
150 43.67
37.75 60.83
50.25
61.75 30.83
100
114.42 59.00
50 97.42 106.83
74.75
33.50
0
Lessthan30years 30to39years 40to54years 55to64years 65yearsandover
Source:StatisticsCanadasSurveyofHouseholdSpending
In2014,allagegroupsexceptpersons65yearsandoverspenttheleastonwirelinetelephoneservices.All
agegroups,excludingpersons65yearsandover,alsospentthemostonmobilewirelessservices.Persons
under30yearsspentthemostonmobilewirelessservices($114.42permonth),whichismorethanten
timestheamounttheyspent,onaverage,onlandlinetelephoneservices($11.17permonth).Personsinthe
40to54agegroupspentthemostontotalcommunicationsservices($250.42permonth),whilepersons65
yearsandoverspenttheleast($167.00permonth).
Therelationshipbetweenagegroupandtheamountspentoncommunicationsservicesisseenbetween
householdswithpersonsagedlessthan30years,andhouseholdswithpersonsaged65yearsandover.A
truegenerationgapisdemonstratedthroughtheirmonthlycommunicationsexpenditures,sincethe
youngestgenerationtendstospendmoreoncommunicationsservices,specificallyonmobilewireless
services($114.42permonth).However,theoldestgenerationspendstheleastintotalforcommunications
services,whiletheserviceitspendsthemostforiscableandDTH($59.00permonth).Figure2.0.2
demonstratesthedifferenceinimportanceofservicethroughtheamountspentperservice.Forexample,
personsunder30yearsspenttheleastonwirelinetelephoneservices($11.17),whereaspersons65years
andoverspentalmostfourtimesthatamount.Eventhoughpersonsagedlessthan30spentthemoston
mobilewirelessservices,theyspenttheleastoncommunicationsservicesoverall,withinpersonsaged64
yearsandunder.
48
Section2.0CMR2016
Communicationsservicepricelevels
Priceindicesofferaperspectiveontheextenttowhichpricesforabasketofgoodsandserviceschangeover
time.Figure2.0.3showsthepricechangesforfixedbasketsoftelecommunicationsservices(telephone
services,Internetservices,andBDUservices(cable,DTHsatellite,andIPTVservices)),aswellasoverallprice
changesasmeasuredbytheConsumerPriceIndex(CPI).Bymaintainingaconsistentbasketofgoodsand
servicesandcomparingpricesinthecurrentyeartotheindexreferenceperiod(2002),theseindicesmeasure
pricechangesaccurately.
Telephoneservicesindex:Thetelephoneservicesindexreflectsthepricechangesexperiencedover
timebyahouseholdforafixedbasketoftelephoneservices,includingbothlandlineandmobile
wirelessservices.Thistypeofbasketreflectsaweightedaverageofconsumerexpendituresonbasic
localservices,aswellasotherlocaltelephoneservices,suchasoptionsandfeatures,longdistance
services,installation,andrepairservices.ThisindexdoesnotincludeInternetserviceexpenditures.
BDUservicesindex:TheBDUservicesindexincludescable,DTHsatellite,andIPTV(includingpay
television)servicesandreflectsthepricechangesexperiencedovertimebyahouseholdforabasket
ofsubscriptionbasedtelevisionservices.Thisbasketincludesbothbasicandextendedtelevision
distributionservices.Basicserviceistheminimumservicetowhichallcustomersmustsubscribe.
Extendedserviceisthemostpopularpackageofadditionalchannels.Thisindexdoesnotaccountfor
bundlingdiscounts.
Internetservicesindex:Theinternetservicesindexreflectsthepricechangesexperiencedovertime
byahouseholdforaconstantquantityandqualityofinternetservices.Thisbasketincludesmonthly
internetaccessservicessubscriptionthroughawiredlinetothehouseholdsresidence.Thisindex
doesnotincludeaccesstotheinternetbundledwithvoicecallsoveracellularnetwork.
49
Section2.0CMR2016
Figure2.0.3Priceindicesfortelephoneservices,BDUservicesandInternetservicescomparedtotheCPI
160
150
PRICEINDEX
140
130
120
110
100
90
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
AsmeasuredbytheCPI,averageannualinflationinCanadawas1.1%in2015.Incomparison,from2014to
2015,thepricesofkeycommunicationservicesincreasedby2.8%(telephone),2.5%(cable,DTHsatelliteand
IPTV)and5.0%(Internet).
PricesforBDUserviceshaveincreasedeachyear,overthepastdecade.Similartopreviousyears,consumers
spentonBDUservicesalmostdoubletheamounttheyspentontelephoneservices.Internetaccessservice
pricescontinuedtorisesince2010.Overall,theCPIsteadilyincreasedoverthe20052015period.
50
Section2.0CMR2016
Figure2.0.4Broadband,wirelineandwirelesspricingcomparisoninruralcommunities,perprovince/territory,
2015
Broadband,wirelineandwirelesspricingcomparisonin
ruralcommunities($/month),2015
Nvt.wireless(2) 65 75
Nvt.wireline(1) 33 33
Nvt.broadband(2) 70 70
N.W.T.wireless(2) 65 75
N.W.T.wireline(1) 33 33
N.W.T.broadband(2) 63 70
Y.T.wireless(2) 65 75
Y.T.wireline(1) 33 33
Y.T.broadband(2) 63 70
N.L.wireless(3) 50 68
N.L.wireline(1) 28 31
N.L.broadband(3) 56 85
N.S.wireless(3) 50 68
N.S.wireline(1) 31 31
N.S.broadband(3) 56 85
P.E.I.wireless(4) 50 69
P.E.I.wireline(2) 28 31
P.E.I.broadband(3) 56 85
N.B.wireless(3) 50 69
N.B.wireline(1) 27 27
N.B.broadband(4) 25 85
Que.wireless(4) 40 65
Que.wireline(1/2) 26 35
Que.broadband(4/5) 30 70
Ont.wireless(3) 50 68
Ont.wireline(1/2) 19 37
Ont.broadband(1/4) 30 93
Man.wireless(4) 48 81
Man.wireline(1) 29 30
Man.broadband(1/2) 60 70
Sask.wireless(4) 45 76
Sask.wireline(1) 32 32
Sask.broadband(2/3) 50 80
Alta.wireless(3) 50 68
Alta.wireline(1) 36 36
Alta.broadband(2/3) 58 80
B.C.wireless(3) 45 68
B.C.wireline(1) 35 36
B.C.broadband(2/3) 58 80
15 25 35 45 55 65 75 85 95
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
51
Section2.0CMR2016
Thenumberattheendofeachbaristhehighestprice.Thenumberofserviceprovidersineachprovince(rural
areassurveyed)isindicatedinparentheses.Forexample,B.C.Broadband(2/3)meansthenumberofservice
providersamongtheruralcommunitiesinBritishColumbiaincludedinthesurveyvariedbetween2and3.
Pricingforbroadband,basiclocalwireline,andwirelessserviceswerecomparedinruralcommunities.
Depictedbroadbandservicepricesarebasedonthemostinexpensiveservicewitha5Mbpsdownloadspeed
orgreaterofferedbytheprovider.Basiclocalwirelineservicesincludeunlimitedcallingwithinaspecified
geographicarea,911services,messagerelayservices,andaccesstolongdistanceservices.Figure2.0.4
displaysthepriceofbasiclocaltelephoneservicesonastandalonebasisinanumberofruralcommunities.
Wirelessmobileservicesinclude1,200minutesorgreaterofvoiceservice,atleast300SMS,andover1GBof
datapermonth,sincenearly50%ofsubscriberssubscribetoaplanthatincludesatleast1GBofdataper
month.
Broadbandinruralcommunities
Theaverageminimumpriceis$51.92permonthforbroadbandservices.NewBrunswickhasthelowestprice
forbroadbandservicesinruralcommunities($25.00permonth)comparedtotheotherprovinces/territories.
Ontariohasthehighestpriceforbroadbandservicesinruralcommunities($93.00permonth).Thevariance
datawerecalculatedbyfindingthedifferencebetweentheminimumsandmaximumsofeach
province/territory.ThewidestspreadofpricesareinOntario,wherepricesrangefromaminimumof$30.00
toamaximumof$93.00permonth,avarianceof$63.00.
Basiclocalwirelineinruralcommunities
Theminimumpricesarerelativelythesameamongprovinces/territories,withanaverageof$29.98per
month.Thelowestprice,$19.00permonth,isfoundinOntario.Ontarioalsohasthehighestpriceof$37.00
permonth.Asimilarpatternisseeninthepricingdataforbroadbandservicesinruralcommunities.
Wirelessinruralcommunities
Theminimumpriceforwirelessservicesinruralcommunitiesisapproximately$51.77permonthonaverage,
whichissimilartotheminimumaveragepriceforbroadbandservices.Quebechasthelowestpriceat$40.00
permonth,andManitobahasthehighestpriceat$81.00permonth.Manitobahasthehighestvarianceof
$33.00permonth.Overall,pricinginruralcommunitiesishighestforbroadbandservices,withwireless
servicepricingnottoofarbehind.
52
Section2.0CMR2016
Figure2.0.5Broadband,wireline,andwirelessservicepricingcomparisoninurbancommunities,per
province/territory,2015
Broadband,wireline,andwirelessservicepricing
comparisoninurbancommunities($/month),2015
Nvt.wireless(2) 65 75
Nvt.wireline(1) 33 33
Nvt.broadband(2) 180 180
N.W.T.wireless(2) 65 75
N.W.T.wireline(1) 32 32
N.W.T.broadband(2) 63 63
Y.T.wireless(2) 65 75
Y.T.wireline(1) 32 32
Y.T.broadband(2) 63 63
N.L.wireless(3) 50 68
N.L.wireline(2) 27 30
N.L.broadband(4) 25 85
N.S.wireless(4) 50 68
N.S.wireline(2) 23 30
N.S.broadband(3) 42 85
P.E.I.wireless(4) 50 69
P.E.I.wireline(2) 28 31
P.E.I.broadband(3) 42 85
N.B.wireless(3) 50 69
N.B.wireline(2) 27 31
N.B.broadband(4) 25 85
Que.wireless(4) 40 65
Que.wireline(2) 26 31
Que.broadband(6/7) 30 43
Ont.wireless(5) 35 68
Ont.wireline(1/3) 26 36
Ont.broadband(7/8) 25 58
Man.wireless(4) 48 81
Man.wireline(2) 29 30
Man.broadband(5) 25 73
Sask.wireless(4) 45 76
Sask.wireline(2) 22 30
Sask.broadband(4/5) 25 73
Alta.wireless(4) 35 68
Alta.wireline(2) 30 36
Alta.broadband(7) 25 73
B.C.wireless(4) 35 68
B.C.wireline(2) 30 36
B.C.broadband(7) 25 73
0 20 40 60 80 100 120 140 160 180
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
53
Section2.0CMR2016
Thenumberattheendofeachbaristhehighestprice.Thenumberofserviceprovidersineachprovince
(urbanareassurveyed)isindicatedinparentheses.Forexample,Sask.Broadband(4/5)meansthenumber
ofserviceprovidersamongtheurbancommunitiesinSaskatchewanincludedinthesurveyvariedbetween4
and5.
Depictedbroadbandservicepricesarebasedonthemostinexpensiveservicewitha5Mbpsdownloadspeed
orgreaterofferedbytheprovider.Basiclocalwirelineservicesincludeunlimitedcallingwithinageographic
area,911services,messagerelayservices,andaccesstolongdistanceservices.Figure2.0.5displaysthe
priceofbasiclocaltelephoneservicesonastandalonebasisinanumberofurbancentres.Mobilewireless
servicesinclude1,200minutesorgreaterofvoiceservice,atleast300SMS,andover1GBofdatapermonth.
Broadbandinurbancommunities
Consumersinallprovinces/territories,excludingNunavut,payamaximumof$85.00permonthfortheir
broadbandservices.Nunavutsmaximumprice($180.00permonth)ismorethandoublethemaximumprice
intherestoftheprovinces/territories.Inmostprovincestheminimumpriceforbroadbandservicesis
$25.00,asseeninFigure2.0.5.ThewidestspreadcanbeobservedinNewfoundlandandLabradorandNew
Brunswick,wherepricesrangefromaminimumof$25.00toamaximumof$85.00permonth.
Basiclocalwirelineinurbancommunities
Thereislittletonovarianceinwirelineservicepricesinurbanareas.Theaveragemaximumpriceforthese
servicesinurbancentresis$32.23permonth.Thehighestpriceis$36.00permonthinBritishColumbia,
OntarioandAlberta,andthelowestpriceis$21.54permonthinSaskatchewan.Thehighestvarianceisin
Ontario($10.00),whichdemonstratesthatmostwirelineserviceusersinurbancentresacrossthecountry
payapproximatelythesameamounteachmonth(Figure2.0.5).
Wirelessinurbancommunities
Theaveragemaximumwirelessservicepriceinurbancentresis$71.15permonth.BritishColumbia,Alberta,
andOntarioallhavethelowestpriceof$35.00permonth.UrbancentresinManitobahavewirelessservices
atamaximumof$81.00permonth,thehighestpriceinCanada,andthesamepricecanbefoundinthis
provincesruralcommunities(seeFigure2.0.4).Manitobaalsohasthehighestvariance($33.00).
Overall,comparedtopricingpatternsinruralcommunities,pricinginurbancentresfollowsthesametrend
throughoutmostprovinces/territories.However,thevarianceinpricesismuchhigherinurbancentresdue
tolowerminimums.
54
Section2.0CMR2016
iii Accessandserviceavailability
OneoftheCRTCskeygoalsistoensurethatCanadianshaveaccesstoaworldclasscommunicationsystem.
Achievingthisobjectiverequiresqualityinformationaboutthediversechallengesfacedbycommunities
acrossthecountry.TobetterunderstandhowthecommunicationsystemisevolvingtohelpCanadians
connectwithoneanotherandtheworld,therestofthissectionfocusesontheavailabilityof
communicationsservicesinCanada,withparticularregardtoofficiallanguageminoritycommunitiesand
accesstocommunicationsservicesinminorityofficiallanguages.
Canadiansarecommunicatingthroughmanydifferentplatforms
AsFigure2.0.6shows,connectionstomobilewirelessservicesrepresentnearlyhalfofallhousehold
connections,andInternetconnectionscontinuetoexpand.Landline(i.e.wirelinetelephoneservice)andBDU
(e.g.cable,DTHsatellite,andIPTV)connections,despitetheirrelativedeclines,stillcompriseoveronethird
ofallsubscriptions.Asawhole,theaveragehouseholdfeatures4.4connections.Whilemobilewireless
serviceconnectionsarethemostwidespread,Canadiansclearlyuseavarietyofwaystocommunicate.
Figure2.0.6Totalresidentialconnectionsdistributionbyservicetype(%)
Residentialconnections
100%
90% 19.0 18.7 18.7 18.4 17.7
80%
70%
Percentage(%)
Source:CRTCdatacollection
55
Section2.0CMR2016
Multiplecellphonehouseholdsbehindtheriseofwirelessservicesubscriptions
AnotherwayofapproachingtheissueofavailabilityistoconsidertheextenttowhichCanadianhouseholds
subscribetokeycommunicationsservices.AsTable2.0.5shows,nearlyallCanadians(99.2%)subscribedto
eithermobilewirelessorlandlinetelephoneservicesin2014.Yet,ratherthanstackingtelephoneservices
(i.e.subscribingtobothlandlineandwirelessmobileservices),someCanadiansarechoosingonlyoneservice
andforthemostpart,thisappearstobemobilewirelessservice.AsnotedinTable2.0.5,thepercentageof
mobileonlyhouseholds(23.7%)currentlyexceedsthepercentageofwirelineonlyhouseholds(13.6%).Over
thelastdecade,thewirelineonlyhouseholdpercentagecontinuouslydecreasedwhilethemobileonly
householdpercentagesteadilyincreased.
Whilethetransitiontowidespreadmobilewirelessserviceusepartlyattheexpenseofwirelinetelephone
servicesisalongtermprocess,thehistoricaldatainTable2.0.5showshowrapidlyCanadianhouseholds
haveembracedthisnewertechnology.In2005,wirelineonlyhouseholds(36.0%)faroutpacedtheirmobile
onlycounterparts(4.8%).
Byorganizingthisinformationbyprovince(seeTable2.0.6)andincomequintile(seeTable2.0.7),itismore
apparentwhichgroupsofCanadiansaredrivingthisyearoveryearshift.Forinstance,consumersinthefour
westernprovinces(Alberta,Saskatchewan,Manitoba,andBritishColumbia)andOntariohaveplayedakey
roleintheriseofmobileonlyhouseholds.Incontrast,bothQuebecandtheEasternprovincescontinueto
featurealargerpercentageoflandlineonlyhouseholds.Nevertheless,allprovinceshavedecreasingwireline
onlypercentages,exceptNewfoundlandandLabrador,whosewirelineonlyhouseholdsincreasedfrom
13.2%in2013to14.0%in2014(Figure2.0.6).Thismaybethereasonwhytheirmobileonlyhouseholds
decreasedto10.2%in2014from12.0%in2013(Figure2.0.6).Finally,NewBrunswickandNewfoundlandand
Labradoraretheonlyprovincesinwhichadecreaseinmobileonlyhouseholdswasobserved.
Figure2.0.7showstherateofcellphonesandlandlinesownedbyCanadians.99.2%ofCanadianhouseholds
owneitheracellphoneoralandline.While85.6%ofhouseholdshavecellphonesin2014,from2011to2014,
thepercentageofhouseholdowningmorethanonecellphoneincreasedfrom42.8%to49.6%.Duringthe
sameperiod,Landlineownershipdecreasedgraduallyfrom86.6%in2011to75.5%in2014,asseeninFigure
2.0.7.
56
Section2.0CMR2016
Figure2.0.7Cellphoneandlandlineownershiprates
C e l l p h o n e a n d l a n d l i n e ow n e rsh i p rate s
86.6
83.8
79.1
75.5
Percentageofhouseholds
17.8 17.3
15.0 16.9
Source:StatisticsCanadasSurveyofHouseholdSpending
ThistableprovidesthepercentageofCanadianhouseholdsbythenumberofcellphoneandlandline
ownershipbetween2011and2014,usingthemostrecentdataavailablethroughtheSurveyofHousehold
Spending.
57
Section2.0CMR2016
Thelinkbetweenincomeandtelephoneservicesubscriptions
Thedataontelephoneownershipratesbyincomequintile(seeTable2.0.7)illustratethetransitiontomobile
phones.Asopposedto2013,whenthepercentageofwirelessonlyhouseholdssurpassedthepercentageof
wirelineonlyhouseholdsinthefirstquintile,thepercentageofmobileonlyandwirelineonlyhouseholds
remainedrelativelystablein2014forthisquintile.
Agreaterchangeisseenwithinthesecond,third,andfourthquintiles.Theexclusiveuseofcellphoneshas
increasedsignificantly(42.3%growthinthethirdincomequintile).Theoverallsteadydeclineinwireline
servicesubscriptionsshowsthathouseholdsarechoosingtoforgowirelineservicesinfavourofmobile
wirelessservices.
Contrarytothetrendseenthroughoutincomequintilesonetofour,theexclusivesubscriptiontowireline
serviceshasincreasedfrom3.6%ofthesehouseholdsto4.8%,whiletheuseofonlymobilewirelessservices
hasdecreased(8.0%)inthefifthincomequintile.
Financialresourcesappeartoplayaroleinwhetherhouseholdssubscribetowirelessandwirelineservices,
oronlyoneofthetwo.Whileonly16.3%ofhouseholdsinthehighestincomequintilesubscribetoonly
wirelineoronlywirelessservices,thereisasignificantdifferenceinthepercentageofhouseholdsinlower
incomequintilesthatsubscribetoonlywirelineoronlywirelessservices(62.9%inthefirstquintile).Indeed,
thedatasuggestthatthehigherahouseholdsincome,themorelikelyitisthatthehouseholdsubscribesto
bothtypesoftelephoneservices.
58
Section2.0CMR2016
Table2.0.5Canadianwirelineandmobilewirelessservicesubscribersper100households
Wireline Only
Mobile
Mobile and/or Wireline wireline
Year Wireline wireless
wireless mobile only oronly
only
wireless wireless
2003 96.3 53.9 98.8 44.9 2.5 47.4
2004 96.2 58.9 98.9 40.0 2.7 42.7
2005 94.0 62.9 98.8 36.0 4.8 40.8
2006 93.6 66.8 98.6 31.8 5.0 36.8
2007 92.5 71.9 98.8 26.9 6.3 33.2
2008 91.1 74.3 99.1 24.8 8.0 32.8
2009 89.3 77.2 99.3 22.1 10.0 32.1
2010 89.3 78.1 99.4 21.3 10.1 31.4
2011 86.6 79.1 99.3 20.2 12.7 32.9
2012 83.8 81.3 99.2 17.9 15.4 33.3
2013 79.1 84.7 99.3 14.6 20.2 34.8
2014 75.5 85.6 99.2 13.6 23.7 37.3
Source:StatisticsCanadasSurveyofHouseholdSpending
Table2.0.6Wirelineandmobilewirelesstelephoneservicesubscribersper100households,byprovince,2014
Wireline Only
Mobile
Mobile and/or Wireline wireline
Province Wireline wireless
wireless mobile only or
only
wireless wireless
BritishColumbia 72.5 87.7 99.4 11.7 26.9 38.6
Alberta 71.8 91.4 99.0 7.6 27.2 34.8
Saskatchewan 73.6 90.5 99.4 8.9 25.8 34.7
Manitoba 78.5 87.0 99.3 12.3 20.8 33.1
Ontario 72.9 87.6 99.4 11.8 26.5 38.3
Quebec 79.8 79.1 98.7 19.6 18.9 38.5
NewBrunswick 86.2 81.1 99.0 17.9 12.8 30.7
NovaScotia 79.5 84.1 98.7 14.6 19.2 33.8
PrinceEdwardIsland 82.9 82.7 99.9 17.2 17.0 34.2
NewfoundlandandLabrador 89.3 85.5 99.5 14.0 10.2 24.2
AllofCanada 75.5 85.6 99.2 13.6 23.7 37.3
Source:StatisticsCanadasSurveyofHouseholdSpending
59
Section2.0CMR2016
Table2.0.7Canadianwirelineandmobilewirelessservicesubscribersper100households,byincomequintile
TheresultsofStatisticsCanadasSurveyofHouseholdSpendingarereleasedapproximatelytwoyearsafter
thedataiscollected.Consequently,themostrecentlyavailabledataisfrom2014.
60
Section2.0CMR2016
ThelinkbetweenincomeandInternetsubscriptions
Mobilewirelessdevices(suchassmartphonesandtablets)andtechnologies(HSPAandLTE)enable
CanadianstoaccesstheInternetfromnearlyanylocation.However,homecomputersstillplayanimportant
role.AsTable2.0.8shows,mostCanadianhouseholdshavehomecomputers.Householdsinthelower
incomequintiles(first,second,andthird)havemorecellphonesthanhomecomputers.Forexample,67.4%
ofCanadianhouseholdsinthelowestincomequintileowncellphones(seeTable2.0.7),comparedto64.3%
ofthosehouseholdsthatownhomecomputersand63.5%thathaveInternetaccessathome(seeTable
2.0.8).
Whilethismaybeduetoanumberoffactors,oneimportantfactorcouldbethatlowincomehouseholdsare
choosingtodevotetheirresourcestoatechnologythatcanprovidemultiplecommunicationsservices(voice
andInternet),ratherthansubscribingtoeachserviceindividually.Itisworthnotingthattheuseofhome
computers,forthefirsttime,hasdeclinedacrossallincomequintiles,withthelargestdecreaseof3.1%inthe
secondquintile.
Table2.0.8HomecomputersandInternetusefromhomeper100households,byincomequintile
TheriseinInternetserviceuseacrossincomequintilesisalsoreflectedinoverallresidentialInternetservice
availabilityandsubscriptionrates.Thepercentageofhouseholdswithaccesstobroadbandserviceswitha
downloadspeedofatleast5Mbpsis96%(seeFigure2.0.8).Similarly,althoughtheCRTCstargetservice
speedsarelinkedtotheavailabilityof5Mbps(download)and1Mbps(upload)serviceandnotsubscriptions
totheseservicespeeds,thedataindicatesthatCanadiansareclearlyembracingfasterconnections,which
arebecomingmorewidelyavailable:themajorityofhouseholdsnowsubscribetoInternetservicepackages
withdownloadspeedsatorabove10Mbps,whilepackageswithslowerservicespeedshavebeendeclining
inpopularity.
61
Section2.0CMR2016
Figure2.0.8Residentialbroadbandserviceavailability(5Mbpsorhigherdownloadspeed),byprovince/territory
(%ofhouseholds),2015
Residentialbroadbandserviceavailability
(5Mbpsorhigherdownloadspeed),2015
99 98 96 96 96
100 95 95
85 87
90 81
77 79
80
%ofhouseholds
70
60
50
40
30
20
10
0
B.C. Alta. Sask. Man. Ont. Que. N.B. N.S. P.E.I. N.L. North Canada
Source:INNOVATION,SCIENCEANDECONOMICDEVELOPMENTCANADA(ISED)andCRTCdatacollection
DTHsatelliteservicesareexcludedastheyhaveanationalfootprint.Theywouldaddapproximately1.5%to
theavailabilityof5Mbpsbroadbandservices.
Table2.0.9ResidentialInternetsubscriptionsbyadvertiseddownloadspeedper100households
62
Section2.1CMR2016
2.1 LOCALSPOTLIGHT:ACCESSFOROFFICIALLANGUAGEMINORITY
COMMUNITIES
63
Section2.1CMR2016
Asadesignatedinstitutionundersection41oftheOfficialLanguagesAct,theCRTCiscommittedto
enhancingthevitalityoftheEnglishandFrenchlanguageminoritycommunitiesinCanada,supportingtheir
developmentandaddressingtheirneedswithinthecontextofitsmandate,andfosteringthefullrecognition
anduseofbothofficiallanguagesinCanadiansociety.Tothisend,theCRTCfocusesonensuringthatofficial
languageminoritycommunitieshaveaccesstoanappropriateandequitablenumberofqualityservicesand
thatthesecommunitiesareadequatelyrepresentedintheprogrammingoftheseservices.
TheseobjectivesreflecttheCanadianbroadcastingpolicyobjectives,whichtheCommissionistaskedto
pursue.Inthisregard,theBroadcastingActspecifiesthattheCanadianbroadcastingsystemshould
demonstrateCanadaslinguisticdualitythroughprogrammingandemploymentopportunities;thatarange
ofbroadcastingservicesinEnglishandFrenchshallbeextendedtoallCanadiansasresourcesbecome
available;andthattheprogrammingprovidedbytheCanadianBroadcastingCorporationbeinEnglishandin
French,andreflectthedifferentneedsandcircumstancesofEnglishandFrenchlinguisticminorities.
Table2.1.1Officiallanguageminoritypopulationasapercentageofthetotalpopulation,byprovinceandterritory,
2012
Officiallanguageminority
Province/territory population(%oftotal
population)
BritishColumbia 1.4
Alberta 2.0
Saskatchewan 1.7
Manitoba 3.6
Ontario 4.0
Quebec 8.0
NewBrunswick 31.6
NovaScotia 3.5
PrinceEdwardIsland 3.8
NewfoundlandandLabrador 0.5
Territories 2.8
Canada 4.8
Source:2011Census,StatisticsCanada
Anumberofdifferentcriteriacanbeusedtoidentifythelanguageofindividuals.Theseincludethefirst
languagelearnedathome,thelanguagespokenathome,andthelanguageofeducation.
Forthepurposeofthisreport,theofficiallanguageminoritypopulationisdefinedintermsofthefirst
languagelearnedathomeinchildhood(i.e.themothertongue)andstillunderstoodatthetimeofthe2011
Census.
Thistabledisplaysthepercentageofthepopulationforwhomthemothertongueisanofficiallanguagein
minoritystatusintheprovinceorterritoryinwhichtheyreside,andinCanadaasawhole.Inallprovincesand
territoriesexceptQuebec,theofficiallanguagehavingminoritystatusisFrench.NewBrunswickhasthe
64
Section2.1CMR2016
highestpercentageofofficiallanguageminoritypopulation,at32.0%,followedbyQuebecat8.0%.Thisdata
excludesinstitutionalresidents.
65
Section2.1CMR2016
Map2.1.1LocationsofofficiallanguageminoritycommunitiesinCanada
Source:CanadianHeritage,OfficialLanguagesBranch
66
Section2.1CMR2016
Table2.1.2Percentageofofficiallanguageminoritycommunityhouseholdshavingaccesstocommunications
servicesintheirofficiallanguage,bytypeofservice,fortheprovinces/territoriesandallofCanada,2013
Official
language
Cable
minority
Overthe distribution Mobile
population Broadband
Province/territory Radio air (excluding wireless
asa Internet
television DTH broadband
percentage
satellite)
oftotal
population
BritishColumbia 1.4 71 49 94 96 98
Alberta 2.0 77 33 90 99 99
Saskatchewan 1.7 55 17 74 99 99
Manitoba 3.6 78 62 75 99 99
Ontario 4.0 71 34 88 97 99
Quebec 8.0 83 87 93 96 99
NewBrunswick 31.6 94 46 93 99 99
NovaScotia 3.5 75 1 76 99 99
PrinceEdwardIsland 3.8 64 0 60 86 99
Newfoundlandand
0.5 56 0 82 85 95
Labrador
Territories 2.8 51 0 75 97 84
Canada 4.8 72 62 91 97 99
Source:2011Census,StatisticsCanada,andCRTCdatacollection
Thistabledisplaysthepercentagesoftheofficiallanguageminoritycommunityhouseholdsineachprovince
andintheterritoriesthathaveaccesstoradioservices,televisionservices,cabledistributionservices
(excludingDTHsatelliteservicessincetheseservicesaregenerallyavailabletoallhouseholds),broadband
Internetservices,andmobilewirelessbroadbandservices,fromwhichtheycanbeservedintheirfirstofficial
language.
67
Section2.1CMR2016
68
Section3.0CMR2016
3.0 TheCommunicationsindustry
69
Section3.0CMR2016
TheCommunicationsindustryencompassesboththebroadcastingandtelecommunicationsmarketsectors.
In2015,telecommunicationsrevenuesrepresented73%ofthecommunicationsrevenuescomparedto27%
forbroadcasting.Thecommunicationsindustryservedover14millionhouseholdsandoveramillion
businessesinCanadausingbothlandlineandwirelessfacilities.Over59%or$35billionofall
communicationsservicesrevenues,excludingrevenuesgeneratedfromdiscretionaryandondemand
televisionservicesaswellasDirecttoHome(DTH)BDUservices,weregeneratedintheprovincesofOntario
andQuebec.
Thissectionexamineskeycharacteristicsofthecommunicationsindustry,includingoverallrevenuegrowth
andfinancialperformance.Moredetailedinformation,includingmarketfinancialperformance,ownership
landscapedata,pricinginformationinruralandurbancentresacrossthecountrycanbefoundinsections4
and5ofthereport.
Thewirelessmarketsectorcontinuetobethelargestsinglecommunicationssector,capturing36%ofthe
$65.7billioncommunicationsrevenuesin2015.Forthefirsttimeever,totalInternetrevenuessurpassed
broadcastingdistributionbyapproximately$900millionandhasemergedasthesecondlargestmarket
sectorwith15%ofthecommunicationsrevenues.BroadcastingdistributionandInternetservicesremain
particularlyreliantonresidentialsubscriptions,whichaccountfor87%oftheirrevenues.
Revenuesfromtopfiveownershipgroupsaccountedforapproximately82%oftotalcommunications
revenuesin2015comparedto81%in2011.Ofthesegroupsofcompanies,twoareincumbenttelephone
companies(BellandTELUS)andthreearetraditionalbroadcastingdistributioncompanies(Rogers,Shaw,and
Qubecor).
Overthepastfiveyears,revenuesfromthecablebasedcarriersandtheincumbentTSPs,asapercentageof
totalcommunicationsrevenues,haveremainedmoreorlessstableatapproximately32%and50%,
respectively.Duringthisperiod,cablebasedcarrierstelecommunicationsrevenuesincreasedby4.2%
annuallyfrom$12.7to$15.0billion.Traditionaltelephonecompanies,however,increasedtheirBDU
revenues10.0%annually,from$2.1billionin2011to$3.1billionin2015.
70
Section3.0CMR2016
i Revenues
Table3.0.1Communicationsrevenues($billions)
Growth(%) CAGR(%)
Category 2011 2012 2013 2014 2015
20142015 20112015
Telecommunication 42.8 43.9 44.8 45.9 47.8 4.1 2.8
Broadcasting 17.6 17.9 18.0 18.2 17.9 1.6 0.4
Totalrevenues 60.4 61.8 62.8 64.1 65.7 2.5 2.1
Source:CRTCdatacollection
Revenuesareoneoftheprincipalmeanstomeasuretheperformanceofthecommunicationsindustry.This
tableshowsrevenues,growthrateaswellasthecompoundannualgrowthrate(CAGR)from2011to2015for
telecommunicationsserviceproviders(TSPs)andbroadcasters(includingallCBCrevenuesandbroadcasting
distributionundertakings(BDUs)).
Figure3.0.1Communicationsannualrevenuegrowthrates
Communicationsannualrevenuegrowthrates
8
6
Percentage (%)
5.2
4.1
4
2.8 2.5
2.0
2 2.7
1.4 1.1
0 0.7
2 1.6
4
2011 2012 2013 2014 2015
Telecommunications Broadcasting
Source:CRTCdatacollection
Annualrevenuegrowthratesareanindicatorofoverallbroadtrendsinthecommunicationsindustry.This
graphshowsannualrevenuegrowthratesforthetelecommunicationsandbroadcastingindustriesfrom2011
to2015.
71
Section3.0CMR2016
Table3.0.2Communicationsrevenuedistributionbyregion($billions)
Percentageof Growth(%)
Region 2014 2015
total(%) 20142015
Atlantic 3.8 4.0 6.8 4.2
BCandTerritories 7.8 8.1 13.7 4.4
Ontario 22.7 23.0 38.8 1.1
Prairies 11.5 12.1 20.4 4.9
Qubec 11.6 12.0 20.3 3.1
Source:CRTCdatacollection
ThistableexcludesrevenuesgeneratedfromdiscretionaryandondemandtelevisionservicesaswellasDTH
BDUservicesasthoseservicesarelicensedasnationalservices.Theseservicesgenerated$4.3and$2.3billion
in2015,respectively.Estimatesweremadeforcompaniesthatwerenotrequiredtoprovideprovincialand
territorialtelecommunicationsdata.
Table3.0.3Communicationsrevenues,bytypeofserviceprovider($billions)
Growth(%) CAGR(%)
Type Subtype 2011 2012 2013 2014 2015
20142015 20112015
Telecommunications 27.7 28.0 28.3 28.9 29.7 2.7 1.8
Incumbent Broadcasting
2.1 2.4 2.7 3.0 3.1 5.3 10.0
TSPs distributionrevenues
Subtotal 30.8 30.3 31.0 31.8 32.8 3.0 2.4
Alternative Otherfacilitiesbased
0.9 1.2 1.2 1.2 1.5 19.1 14.4
service serviceproviders
providers Resellers 1.5 1.5 1.5 1.6 1.7 5.6 2.9
Telecommunications 12.7 13.3 13.8 14.2 15.0 5.4 4.2
Cablebased Broadcasting
6.3 6.2 6.1 6.0 5.8 2.8 2.2
carriers distributionrevenues
Subtotal 19.0 19.5 19.9 20.2 20.8 3.0 2.2
Other BroadcastingRadio&
9.2 9.3 9.2 9.3 9.0 2.9 0.5
broadcasting TV
Total All 60.4 61.8 62.8 64.1 65.7 2.5 2.1
Source:CRTCdatacollection
Canadiansreceivebroadcastingandtelecommunicationsservicesfromarangeoftypesofserviceproviders,
througharangeoftechnologies.Thistablelistseachtypeoftelecommunicationsandbroadcastingservice
providerandshowschangesintotalannualrevenuesforeachofyearbetween2011and2015.
72
Section3.0CMR2016
ii Industrycharacteristics
Table3.0.4IndustryconvergenceCablevs.telecommunications
Percentageof
Percentageofcablebased
incumbentTSPs
Year carriersrevenuesfrom
revenuesfrom
telecommunicationsservices
televisionservices
2015 72.1 9.6
2014 70.5 9.3
2013 69.4 8.8
2012 68.1 7.8
2011 66.8 7.2
Source:CRTCdatacollection
Thistableshowstheextenttowhichcablebasedcarrierscollectrevenuesfromtelecommunicationsservices
andincumbentTSPs(traditionaltelephonecompanies)collectrevenuesfromtelevisionservices.Itillustrates
onemeasureofthestateofconvergenceintheindustrybetween2011and2015.Telecommunications
servicesincludelocaltelephone,longdistance,Internet,dataandprivateline,andwirelessservices.
Table3.0.5Percentageofbroadcastingandtelecommunicationsrevenuesgeneratedbycompaniesoperatingin
multiplesectors
Thetableaboveshowsthatthreecommunicationsserviceprovidersofferedservicesinall10marketsectors
(radio(1),television(2),BDU(3),discretionaryandondemandtelevision(4),inthebroadcastingindustry,
andlocalandaccess,(5)longdistance(6),Internet(7),wireless(8),data(9),andprivateline(10)inthe
telecommunicationsindustry)andgenerated59%ofcommunicationsrevenues.Incontrast,220providers
thatofferedonlyoneservicegenerated3%ofcommunicationsrevenues.
73
Section3.0CMR2016
iii Financialperformance
Figure3.0.2Percentoftotalrevenues,bybroadcastingandtelecommunicationsownershipgroups
81 82 82
Percentage(%)
10 10 10 9 8 8
Canadascommunicationsservicesmarketisdominatedbyasmallnumberoflargeownershipgroups.The
topfivegroups,Bell,Qubecor,Rogers,TELUS,andShaw,accountforapproximately82%oftotalindustry
revenues.Thenextfivelargestgroups/entitiesgatherapproximately10%,andallremaininggroups/entities
gather8%.Revenuesincludethoseoftheiraffiliates.
74
Section3.0CMR2016
Figure3.0.3Communicationsrevenues,bytypeofprovider,2015
Communicationsrevenues,bytypeofprovider,2015
Broadcasting
Otherentities
IncumbentTSPs
14%
50%
Cablebased
carriers
32%
Otherfacilities
basedservice
Resellers providers
2% 2%
Source:CRTCdatacollection
Figure3.0.4Broadcastingandtelecommunicationsrevenues(excludingnonprogrammingandexemptservices)
Broadcastingandtelecommunicationsrevenues
70 64.1 65.7
61.8 62.8
60.4
60
50
47.8
40 44.8 45.9
42.8 43.9
($billions)
30
20
17.6 17.9 18.0 18.2 17.9
10
0
2011 2012 2013 2014 2015
Total Telecom Broadcasting
Source:CRTCdatacollection
Thisbargraphcomparescablebasedserviceproviderrevenuesfromtwoprincipalsources:basicandnon
basicprogrammingservices(i.e.revenuesfromthedistributionoftelevisionservices)andwireline
telecommunicationservices(i.e.local,longdistance,data,privateline,andInternet)between2011and2015.
75
Section3.0CMR2016
Figure3.0.5Cablebasedserviceproviderrevenues,byservicetype
Cablebasedserviceproviderrevenues,byservicetype
8 60
56
7 45 53
50 50
6 47 6.8
6.6
6.0 40
Percentage (%)
($ billions)
Source:CRTCdatacollection
Thisbargraphcomparescablebasedserviceproviderrevenuesfromtwoprincipalsources:basicandnon
basicprogrammingservices(i.e.revenuesfromthedistributionoftelevisionservices),andwireline
telecommunicationservices(i.e.local,longdistance,data,privateline,andInternet)between2011and2015.
ThisgraphexcludesrevenuesfromBDUsatelliteservicesandmobilewirelessservices.
76
Section3.0CMR2016
Figure3.0.6Canadiancommunicationsrevenuecompositionforaselectnumberoflargecompanies,2015
Telus Group
MTS Group
Telecommunications revenue share (%)
SaskTel
Rogers
Group
Bell Group
Qubecor
Group
Cogeco
Group
Shaw Group
Source:CRTCdatacollection
ManyofCanadaslargestcommunicationsservicecompaniesoffertelecommunicationsservicesaswellas
broadcastingservices.ThisgraphplotsthetotalrevenuesofCanadaslargestcommunicationscompaniesbysize
(thelargerthecircle,thegreaterthecompanysrevenue)andbyindustry(proximitytoanaxisindicatesalarger
shareofrevenuederivedfromthatindustryservice).
77
Section3.0CMR2016
Figure3.0.7EBITDAmarginsachievedbycablebasedBDUs,traditionaltelephonecompanies,andotherservice
providers
E BITDA m a rg i n s achieved
50
46.3 45.1
44.6 46.1
40
38.7
37.5 36.6 37.7
37.1
30
PERCENTAGE(%)
20
10
11.1
0
0.1
10
10.5
20
2012 2013 2014 2015
Source:CRTCdatacollection
Thisgraphshowsearningsbeforeinterest,taxes,depreciation,andamortization(EBITDA)marginsforcable
basedBDUs,traditionaltelephonecompanies,andotherserviceproviders(includingresellersandother
alternativefacilitiesbasedproviders)forBDUandtelecommunicationsservicesfortheperiod2012to2015.
OnlycompanieswithCanadiancommunicationsrevenuesgreaterthan80%oftheirtotalrevenueswere
includedinthecalculationofEBITDA.
EBITDAmarginisameasureofprofitability.HigherEBITDAmarginsaregenerallyassociatedwithgreater
profitability.ThefiguredemonstratesanextremejumpintheEBITDAmarginsofotherserviceproviders;this
wasmainlyduetosomecompaniesreportingextraordinaryaccountingitemsintheirincomestatementin
2015,itdoesnotrepresentachangeintheirpositioninthemarket.
78
Section3.0CMR2016
iv Consumervoices
Table3.0.6NumberofcommunicationsrelatedcontactsreceivedbytheCRTC,bytypeofissue
TheCRTCtrackingsystemcountsmultiplecommunicationsfromthesameclientonthesamecomplaintas
separateunits;therefore,theactualnumberofcomplaintsreceivedshouldbeslightlylower.
Enquiriesrefertocitizenslookingforinformation.Complaintsrefertoaconsumerlodgingacomplaint,
expectingfeedbackandresolution.Contactsrefertothetotalofcases(comments,questions,complaints,
campaignandpetition)thatwereassignedanddealtbyClientServicesacrossCanada.
79
Section3.0CMR2016
80
Section4.0CMR2016
4.0 Broadcastingsectoroverview
81
Section4.0CMR2016
TheCanadianbroadcastingsectorconsistsofradio(privateandCBC),conventionaltelevision(privateand
CBC),anddiscretionaryandondemandtelevisionservices(pay,payperview(PPV),videoondemand(VOD)
andspecialtyservices)andbroadcastingdistributionundertakings(BDU)(cable,satelliteandIPTV).4
RevenuesreportedbytheCanadianbroadcastingsectorin2015decreasedby1.6%to$17.9billion,from
$18.2billionin2014.Broadcastingrevenuesrepresents27.3%ofallCanadiancommunicationsrevenues.
From2011to2015,overallbroadcastingrevenuesinthecommunicationssectorincreasedatanaverage
annualrateof0.4%.
Privateradiosectorrevenuesandprofitabilityremainedrelativelystablefrom2014to2015,whileprivate
conventionaltelevisionsectorrevenuesandprofitabilityhaveexperienceddecreasesduringthesameperiod.
Privateradiobroadcastersreported$1,603millioninrevenuesandaPBITmarginof18.9%in2015,similarto
previousyears$1,614millionrevenuesandPBITmarginof18.5%,whileprivateconventionaltelevision
broadcastersreported$1,757millioninrevenuesandPBITmarginsof8.0%in2015,a2.6%decrease
comparedtopreviousyears$1,804millionrevenuesandPBITmarginof7.7%.
Discretionaryandondemandservicesrelyprimarilyonsubscriberrevenueswhileconventionalbroadcasters
relyessentiallyonadvertisingrevenues.In2015,approximately92%ofprivateconventionalbroadcasters
revenuesand31%ofdiscretionaryandondemandservicesrevenuescamefromadvertisingrevenues.
In2015,thetop5companies,intermsofrevenues,generated$14.5billioninbroadcastingrevenuesand
accountedforapproximately81%oftotalbroadcastingrevenues.Theremainingentitiesreportedcombined
revenuesof$3.4billion,or19%oftotalbroadcastingrevenues.
Companiesoperatinginallbroadcastingsegments(i.e.radio,conventionaltelevision,discretionaryandon
demandtelevisionandBDU)generatedapproximately64%oftotalCanadianbroadcastingrevenuesin2015.
Incomparison,companiesoperatinginonlyonemarketsectorgenerated6%oftotalCanadianbroadcasting
revenues.
4
InternetradioandinternettelevisionrevenuesarenotincludedintheCommunicationsMonitoringReport.
82
Section4.0CMR2016
i Revenues
Table4.0.1Broadcastingrevenues($millions)
Growth(%) CAGR(%)
Category Subcategory 2011 2012 2013 2014 2015
20142015 20112015
Privatecommercial
311 306 295 291 286 1.7 2.1
AMstations
Privatecommercial
1,303 1,312 1,328 1,323 1,317 0.5 0.3
FMstations
Privatecommercial
Radio 1,614 1,618 1,623 1,614 1,603 0.7 0.2
Total
CBCAMstations 80 73 58 53 49 7.6 11.6
CBCFMstations 257 253 246 235 228 3.0 3.0
CBCtotal 337 326 305 288 277 3.9 4.8
Total 1,951 1,944 1,927 1,902 1,879 1.2 0.9
Privateconventional 2,139 2,038 1,944 1,804 1,757 2.6 4.8
Conventional
CBCconventional 1,339 1,369 1,247 1,328 1,107 16.6 4.6
television
Totalconventional 3,478 3,407 3,191 3,132 2,864 8.5 4.7
Discretionaryand
Discretionaryandon
ondemand 3,748 3,968 4,091 4,236 4,255 0.4 3.2
demandservices
television
Totaltelevision Total 7,226 7,375 7,282 7,367 7,119 3.4 0.4
CableandIPTV 5,927 6,068 6,322 6,516 6,630 1.7 2.8
BDU DTH/MDS 2,532 2,492 2,472 2,414 2,289 5.2 2.5
Total 8,459 8,561 8,794 8,930 8,918 0.1 1.3
AllBroadcasting
Total 17,636 17,880 18,004 18,199 17,916 1.6 0.4
services
Source:CRTCdatacollection
Inthistable,broadcastingrevenuesarepresentedforeachtypeofserviceandtheircomponentparts,forthe
years2011to2015.Italsoshowsacompoundannualgrowthrate(CAGR)foreachcomponent.Formore
details,visittheCRTCsfinancialsummariespage:http://www.crtc.gc.ca/eng/stats.htm
ThenotabledecreaseinCBCconventionaltelevisionrevenuescomesfromadecreaseinadvertisingrevenuesand
LPIFrevenues.ThedecreaseinadvertisingrevenuesisinpartlinkedwiththelossoftheNationalHockeyLeague
TVrights,combinedwiththeabsenceofmajorsportseventsnamelytheOlympicsandFIFAWorldCupthat
generatedadditionaladvertisingrevenuesin2014.
83
Section4.0CMR2016
Table4.0.2Broadcastingrevenuedistributionbyregion($billions)
Percentageof Growth(%)
Region 2014 2015
total(%) 20142015
Atlantic 0.8 0.8 6.7 0.9
BCandTerritories 1.5 1.5 13.0 0.5
Ontario 4.5 4.3 37.9 4.4
Prairies 2.1 2.1 18.2 0.8
Qubec 2.7 2.8 24.2 0.2
Source:CRTCdatacollection
ThistableexcludesrevenuesgeneratedfromdiscretionaryandondemandtelevisionservicesaswellasDTH
BDUservicesasthoseservicesarelicensedasnationalservices.
84
Section4.0CMR2016
ii Industrycharacteristics
Table4.0.3Percentageofbroadcastingrevenuesgeneratedbycompaniesoperatinginmultiplesectors
Thebroadcastingindustrycomprisesfoursectors:radio(1);conventionaltelevision(2);discretionaryandon
demandtelevision(3);andBDUsincludingcable,satelliteandIPTV(4).Whilemostcompaniesoperateinonly
onesector,severaloperateinallfour.Thistableshowsthenumberofcompaniesthatoperateindifferent
numbersofsectors,andthepercentageoftotalrevenuesgeneratedbythosecompaniesaccordingtothe
numberofsectorsinwhichtheyoperate.Takentogether,thedataillustratethatthesmallnumberof
companiesoperatinginmultiplesectorsearnedabouttwothirdsoftotalindustryrevenues.Affiliated
companiesareincludedwiththeirparentcompany.
Figure4.0.1Percentoftotalbroadcastingrevenues,byownershipgroups
Percentoftotalbroadcastingrevenues,byownershipgroups
100
81 81 81
80
Percentage(%)
60
40
20 10 10 10 9 8 9
0
Top5groups Next5groups/entities Remaining
groups/entities
Source:CRTCdatacollection
ThisfigureshowsthecombinedpercentageofbroadcastingrevenuesofCanadasfivelargestgroupsBCE,
Shaw(includingCorus),Rogers,Qubecor,CBC,aswellasthenextfivelargest,andtheremaining175
groups/entitiesintheindustry.Groupsrevenuesincludethoseoftheiraffiliates.
85
Section4.0CMR2016
Figure4.0.2Percentageoftotalcommercialradiorevenuesbybroadcaster,2015
Percentageofcommercialradiorevenuesbybroadcaster,2015
Corus,10%
Other,32%
BCE,26%
Cogeco,7%
Newcap,10%
Rogers,15%
Source:CRTCdatacollection
Canadasfivelargestcommercialradiobroadcastersreportedformorethan68%ofthesectorstotal
revenuesin2015.
Thepercentageoftotalrevenuecalculationisbasedontotalrevenuesreportedforeachservicecontrolled
bythebroadcaster.Controlwasdeterminedwherethebroadcasterhadgreaterthan50%directandindirect
votinginterestasof31August2015.
86
Section4.0CMR2016
Figure4.0.3Percentageoftelevisionrevenuesbybroadcaster,2015
Percentageoftelevisionrevenuesbybroadcaster,2015
CBC,18%
Other,14%
BCE,31%
Rogers,11%
Remstar,1%
Shaw/Corus,20%
Qubecor,5%
Source:CRTCdatacollection
Thesixlargesttelevisionbroadcastersaccountedfor86%ofthesectorstotalindustryrevenuesin2015.In
thedeterminationofthetop5companies,ShawandCoruswerecountedasoneentity.
Thepercentageoftotalrevenuecalculationisbasedontotalrevenuesreportedforeachservicecontrolled
bythebroadcaster.Controlwasdeterminedwherethebroadcasterhadgreaterthan50%directandindirect
votinginterestasof31August2015.
CBCrevenuesincludeadvertising,subscriber,andothercommercialrevenuesandParliamentary
appropriations.
87
Section4.0CMR2016
iii Financialperformance
Figure4.0.4Totalbroadcastingrevenuesbytypeofservice($billion)
Totalbroadcastingrevenuesbytypeofservice($billion)
2.5 2.5
10.0 Privateconventional
4.1 4.2 4.3 television
8.0 3.7 4.0 DTH/MDS
6.0
Discretionaryandon
4.0 demandtelevision
5.9 6.1 6.3 6.5 6.6
CableandIPTV
2.0
0.0
2011 2012 2013 2014 2015
Source:CRTCdatacollection
Thebargraphshowstotalbroadcastingindustryrevenuesandtotalrevenuesgeneratedineachofthe
industryssubcategories(BDU,commercialtelevision,commercialradio,andtheCBC).
88
Section4.0CMR2016
Figure4.0.5PBIT/EBITDAmarginsbytypeofservice(%)
PBIT/EBITDAmarginsbytypeofservice(%)
40
33.4
35 32.0
30.1
30 27.7
26.5
24.4
23.0 23.8 CableandIPTVEBITDA
25 24.8
PBIT/EBITDAmargins(%)
20.8
22.5 20.3 20.2
20 18.5 Discretionaryandon
19.8 18.9
19.3 demandtelevisionPBIT
15 19.9
15.8 16.1 DTH/MDSEBITDA
10 7.3
Privateconventional
5 televisionPBIT
1.1
0.1 Privatecommercial
0
radioPBIT
2011 2012 2013 2014 2015
5
10 7.7 8.0
15
Source:CRTCdatacollection
ThelinegraphshowsPBITmarginsforprivateradioandtelevisionservicesandEBITDAmarginsforBDUs,as
measuresofprofitability.
89
Section4.1CMR2016
4.1 Radiosector
91
Section4.1CMR2016
Canadianscontinuedtohaveaccesstoawidevarietyofmusicalchoicesandlocal,regionalandnationalnews
platformswithover1,100radioandaudioservicesbroadcastingacrossthecountry.Over75%ofallprivate
commercialradiostationsinCanadaarelocatedinOntario,Quebec,AlbertaorBritishColumbia.
TheCanadianBroadcastingCorporation(CBC),Canadaspublicbroadcaster,operates69radiostations,in
EnglishandinFrench,acrossCanada.RevenuesforCBCsradiounithavesteadilydeclinedfrom$337million
in2011to$277millionin2015.
Thereareover700privatecommercialradiostationsinCanada.Theyoperateinhundredsofdifferent
marketsandaccountforoverthreequartersofthetotalnumberofradiostationsinoperationinCanada.
Overthelastfiveyears,commercialradiostationsreportedaslightaverageannualrevenuedecreaseof
approximately0.2%.In2015,theseservicesreported$1,603millioninrevenuesandaprofitabilitymarginof
19%.Duringthesameperiod,revenuesreportedbyAMradiostationshavedroppedtofrom$311millionin
2011to$286millionin2015.Thiscanbeattributed,inpart,tothefalteringadvertisingrevenues.FM
stationshavereportedamarginalannualrevenueincreaseof0.3%overthesameperiod.
Countryandcontemporarymusicformatstogethergarneredthelargestnationallistenershare.The
popularityofthesegenresonCanadianradiohasbeensteadilyincreasingoverthelastfewyears.
In2015,theCommissionissued14newlicences,halfofwhichwerenoncommercialentities.Community,
campusandAboriginalradiostationsplayanimportantroleinthecommunitiestheyserveandinthe
broadcastingsectorasawhole.In2015,theseradiostationsnumbered187andreported$61millionin
revenues.
Canadiansareincreasinglyusingarangeofaudiocontentservicesinadditiontoovertheairradio.
AccordingtotheMediaTechnologyMonitor(MTM),23%ofCanadians(18+)streamAM/FMradioonlineand
55%ofCanadians(18+)streammusicvideosonYouTube,anincreaseof3%over2014.Nationalsatellite
subscribershiphasremainedstagnantoverthepastyear,asMTMagainestimates16%ofCanadians(18+)
subscribetosatelliteradio.
92
Section4.1CMR2016
i Revenues
In2015,the704commercialradiostationsinoperationgeneratedtotalrevenuesof$1,603million,relatively
unchangedfrom2011.Therewere12additionalFMservicesinoperationin2015,comparedtotheprevious
year,bringingthetotalnumberofFMstationto580services.Theyreportedcombinedtotalrevenuesof
$1,317million.RevenuesforFMserviceshavegrownonaverageby0.3%ayearsince2011.
ThenumberofAMradiostations,ontheotherhand,wasdown3unitsfrom2014to124servicesreporting
in2015.AMradiostationshavebeenstrugglingoverthelast5years:theirrevenueshavedropped2.1%per
yearonaveragesince2011to$286millionin2015.
Atotalof23radioserviceswereofferingthirdlanguageprogrammingin2015nationwide,12ofthemon
theAMbandand11ontheFMband.Theseservicesgeneratedacombined$46.7millioninrevenuein2015,
up1.5%from2014.Asamatteroffact,totalrevenuesforethnicradioserviceshaverecordedanaverage
growthrateof1.3%peryearbetween2011and2015,whilethoseforFrenchandEnglishlanguageservices
declinedbyanaveragerateof0.1%and0.3%peryearrespectivelyoverthatperiod.
Table4.1.1Revenues($millions)ofprivatecommercialradiostations,bylanguageofbroadcastandfrequency
band
Growth(%) CAGR(%)
Typeofstation 2011 2012 2013 2014 2015
20142015 20112015
EnglishlanguageAM 274.9 274.9 264.6 262.0 257.1 1.9 1.7
FrenchlanguageAM 11.7 6.1 4.9 4.3 4.0 6.2 23.5
ThirdlanguageAM 24.4 25.2 25.1 24.7 24.9 0.9 0.5
AlllanguagesAM 311.1 306.2 294.6 290.9 286.0 1.7 2.1
EnglishlanguageFM 1,035.3 1,040.1 1,053.8 1,042.7 1,040.1 0.2 0.1
FrenchlanguageFM 247.7 251.9 253.2 259.2 254.7 1.8 0.7
ThirdlanguageFM 19.8 20.2 21.1 21.3 21.8 2.1 2.4
AlllanguagesFM 1,302.8 1,312.2 1,328.0 1,323.3 1,316.6 0.5 0.3
AlllanguagesAMandFM 1,613.8 1,618.4 1,622.7 1,614.2 1,602.5 0.7 0.2
Source:CRTCdatacollection
ThistableshowrevenuetrendsforprivateEnglish,French,andThirdlanguagecommercialAMandFM
radiostations,fortheperiod2011and2015,andincludestheannualgrowthbetween2014and2015,and
overtheentirestudyperiod.
Networkresultsareincluded;however,resultsforpayandspecialtyaudioprogrammingservices,aswellas
formultichannelsubscriptionradioservices,areexcluded.
93
Section4.1CMR2016
Table4.1.2Numberofprivatecommercialradiostationsreportingfinancialresults,bylanguageofbroadcastand
frequencyband
TheCanadianBroadcastingCorporation(CBC),Canadaspublicbroadcaster,operatesatotalof14AMand55
FMradiostationsacrossCanada.Theseservicestotalrevenueshavesteadilydeclinedfrom$337millionin
2011to$277millionin2015.ThemajorityofthisdecreaseisattributabletoachangeinParliamentary
Appropriation.
2015markedthe2ndyearofeligibilityfortheCBCtogeneratenationaladvertisingrevenuesonIciMusique
andRadio2.Atotalof$1.4millioninadvertisingrevenuewasgenerated,up27.2%from2014.Nonetheless,
advertisingrevenuesremainamodestsourceofincomefortheCBCsradioservicesitaccountedfor0.5%
ofthebroadcasterstotalradiorevenuesin2015.
Ofnote,thenumberofradiostationsoperatedbytheCBCdeclinedby13unitsbetween2014and2015to
69.ThisisexplainedbythefactthattheCBCendedapilotprojectwherebyitwasairinglocalcontenton
these13stations,whichhavesincerevertedbacktorebroadcasters.
Table4.1.3RevenuesofCBCradiostationssummary,bytypeofrevenue
Growth(%) CAGR(%)
Metric 2011 2012 2013 2014 2015
20142015 20112015
Advertisingrevenues 0 0 0 1,074 1,366 27.2 n/a
Parliamentaryappropriations 327,267 316,508 295,523 277,310 266,880 3.8 5.0
Sales/syndicationofprograms 859 952 1,087 1,328 1,816 36.8 20.6
Otherrevenues 8,803 8,432 8,145 7,924 6,480 18.2 7.4
Totalrevenues 336,928 325,892 304,756 287,636 276,542 3.9 4.8
Numberofstations 78 78 81 82 69 15.9 3.0
Source:CRTCdatacollection
InitsBroadcastingDecisionCRTC2013263,theCommissionallowedthebroadcastofnational
advertisingonIciMusiqueandRadio2.AdvertisingrevenuesforCBCin2014and2015intheabovetable
reflectthisdecision.
94
Section4.1CMR2016
Table4.1.4Revenues($millions)ofcommercialradiostations,byradiomarkettype
CAGR(%)
MarketType 2011 2012 2013 2014 2015
20112015
Designated 1,215.3 1,224.8 1,217.9 1,203.0 1,196.3 0.4
Nondesignated 398.5 393.6 404.8 411.2 406.2 0.5
Allmarkets 1,613.8 1,618.4 1,622.7 1,614.2 1,602.5 0.2
Source:CRTCdatacollection
Designatedmarketsgenerate75%ofallrevenuesreportedbycommercialradiostations,theyinclude
marketsformallyknownasmedium,largeandmajormarketsinadditiontoadditionalmarkets.Tofindout
moreinformationondesignatedandnondesignatedmarkets,pleaseconsulttheCRTCs20112015
commercialradiofinancialsummaries:
http://www.crtc.gc.ca/eng/publications/reports/BrAnalysis/radio2015/radio2015.htm.
Table4.1.5Revenues($millions)ofethniccommercialradiostations,byprovince
CAGR(%)
Province 2011 2012 2013 2014 2015
20112015
BritishColumbia 14.2 15.2 15.2 14.7 14.6 0.7
Alberta/Manitoba 3.4 3.2 3.7 5.0 5.4 12.3
Ontario 23.3 23.6 23.7 23.1 23.5 0.2
Qubec 3.3 3.3 3.5 3.2 3.1 1.6
Total 44.2 45.4 46.2 46.0 46.7 1.5
Source:CRTCdatacollection
Thistableshowsradiorevenuesreportedbyethnicradiostationsbyprovincefrom2011to2015.Therewere
noethniccommercialstationstoreportforinSaskatchewan,theAtlanticProvincesandtheNorth.
95
Section4.1CMR2016
ThedatainthefourfollowingfigurespresenttherevenuesofprivatecommercialEnglish,French,andthird
languageAMandFMradiostations.Thedataonaverageannualrevenuesarecomparedtoprofitbefore
interestandtaxes(PBIT)toindicatethefinancialhealthofgroupsofradiostations.ThedataforAMandFM
stations,aswellasthelanguageofbroadcast,aresegmentedtoshowthevariationsforeachofthese
criteria.
Figure4.1.1Revenuesofprivatecommercialradiostationsandnumberofreportingundertakings
Privatecommercialradiostations
1,200
60%
1,000
800
40%
600
400 20%
200
0 0%
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
AM FM AMandFM FMasapercentoftotal
Source:CRTCdatacollection
Thedatainfigures4.1.1through4.1.3includenetworkresults,butexcludepayandspecialtyaudio
programmingservices,aswellasmultichannelsubscriptionaudioservices.
96
Section4.1CMR2016
Figure4.1.2RevenuesofEnglishlanguageprivatecommercialradiostationsandnumberofreportingundertakings
Englishlanguageprivatecommercialradiostations
1,200
80%
1,000
60%
800
600 40%
400
20%
200
0 0%
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
AM FM AMandFM FMasapercentoftotal
Source:CRTCdatacollection
Figure4.1.3RevenuesofFrenchlanguageprivatecommercialradiostationsandnumberofreportingundertakings
Frenchlanguageprivatecommercialradiostations
Revenues($millions) Numberofreportingundertakings
300 100%
250
80%
200
60%
150
40%
100
20%
50
0 0%
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
AM FM AMandFM FMasapercentoftotal
Source:CRTCdatacollection
97
Section4.1CMR2016
Figure4.1.4RevenuesofEthnicprivatecommercialradiostationsandnumberofreportingundertakings
Ethnicprivatecommercialradiostations
Revenues($millions) Numberofreportingundertakings
50 100%
45
40 80%
35
30 60%
25
20 40%
15
10 20%
5
0 0%
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
AM FM AMandFM FMasapercentoftotal
Source:CRTCdatacollection
RevenuesfromprivatecommercialradiostationsoperatinginthecontextoftheEthnicBroadcastingPolicy
trendedupwardsfrom2011to2015.
98
Section4.1CMR2016
Table4.1.6Financialsummary($thousands)ofnative,community,andcampusradiostations
Typeof
Metric 2011 2012 2013 2014 2015
station
Numberofstationsreporting 33 33 35 27 21
Advertisingrevenues 5,820 5,397 4,569 3,984 4,316
Native Otherrevenues 12,450 10,772 11,203 8,731 8,847
stations5 Totalrevenues 18,270 16,168 15,772 12,715 13,162
Advertisingasapercentoftotalrevenues(%) 31.9 33.4 29.0 31.3 32.8
PBITmargin(%) 0.5 4.7 14.6 11.1 0.1
Numberofstationsreporting 107 110 112 111 113
Advertisingrevenues 15,201 15,512 15,223 14,973 15,816
Community Otherrevenues 14,987 15,126 17,190 16,815 18,448
radiostations Totalrevenues 30,188 30,638 32,412 31,787 34,264
Advertisingasapercentoftotalrevenues(%) 50.4 50.6 47.0 47.1 46.2
PBITmargin(%) 10.5 3.7 7.4 4.4 5.9
Numberofstationsreporting 48 49 47 47 47
Advertisingrevenues 1,082 1,019 889 1,337 907
Campusradio Otherrevenues 7,401 7,814 8,323 8,440 8,839
stations Totalrevenues 8,483 8,833 9,213 9,777 9,746
Advertisingasapercentoftotalrevenues(%) 12.8 11.5 9.7 13.7 9.3
PBITmargin(%) 20.3 10.5 8.5 7.9 4.8
Source:CRTCdatacollection
ThistableshowsthenumberofstationsreportingrevenuesandPBITmargins(PBITdividedbytotalrevenues)
forradiostationsoperatinginthecontextoftheNativeBroadcastingPolicy,aswellascommunityand
campusstationsfrom2011to2015.
Forallthreetypesofradiostations,otherrevenuesincludefundraisingandothersources.Fornativeradio
stationsonly,otherrevenuesalsoincludebandcouncilgrantsandcontributions.
5
NativetypeBstationsasdefinedintheCRTCPublicNotice199089arereferredtoasnativestationsinthis
document.
99
Section4.1CMR2016
ii Financialperformance
Overall,theaverageProfitBeforeInterestandTaxesmargin(PBITmargin)ofthecommercialradioindustry
hasremainedinthe1820%rangeoverthepast5yearsasexpensesremainedrelativelyconstantinresponse
tostagnatingrevenues.In2015,thesectorreportedanaveragePBITmarginof18.9%,up0.4percentage
pointsfrom2014.
FMradioservicesreporthigherthanaveragePBITmargins.In2015,theircombinedprofitabilitystoodat
almost22%(or$286million),whilethatoftheAMserviceswasof6%($17million).
Thedatapresentedinfigures4.1.5through4.1.12includenetworkresults,butexcluderesultsforpayand
specialtyaudioprogrammingservices,aswellasformultichannelsubscriptionaudioservices.
Figure4.1.5AverageperstationannualrevenuesandPBITofprivatecommercialradiostations
Privatecommercialradiostations(averageperstation)
2.5 1.00
2.4 0.80
Revenues($millions)
PBIT($millions)
2.4
0.60
2.3
0.40
2.3
2.2 0.20
2.2 0.00
2011 2012 2013 2014 2015
AMRevenue FMRevenue
AMandFMRevenue AMPBIT
FMPBIT AMandFMPBIT
Source:CRTCdatacollection
100
Section4.1CMR2016
Figure4.1.6PBITandPBITmarginsofprivatecommercialradiostations
Privatecommercialradiostations
AMStations FMStations AMandFMStations
350 25%
300
20%
PBITMargin(Percent)
PBIT($millions)
250
200 15%
150 10%
100
5%
50
0 0%
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
PBIT PBITMargin
Source:CRTCdatacollection
TherewasanoverallincreaseinthePBITandPBITmarginsforallradiostationsfrom2010to2013,followed
bydecreasein2014andaslightincreasein2015.
Figure4.1.7AverageannualrevenuesandPBITperstationofEnglishlanguageprivatecommercialradiostations
Englishlanguageprivatecommercialradiostations
(averageperstation)
2.6 1.0
2.5
0.8
2.4
Revenues($millions)
PBIT($millions)
2.3 0.6
2.2
2.1 0.4
2.0
0.2
1.9
1.8 0.0
2011 2012 2013 2014 2015
AverageannualperstationrevenuesforbothAMandFMEnglishlanguageprivatecommercialradiostations
havedecreasedin2015,althoughtheaveragePBITforAMandFMstationsroseslightlyin2015.
101
Section4.1CMR2016
Figure4.1.8PBITandPBITmarginsofEnglishlanguageprivatecommercialradiostations
Englishlanguageprivatecommercialradiostations
250 25%
PBITMargin(Percent)
PBIT($millions)
200 20%
150 15%
100 10%
50 5%
0 0%
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
PBIT PBITMargin
Source:CRTCdatacollection
Figure4.1.9AverageannualrevenuesandPBITperstationofFrenchlanguageprivatecommercialradiostations
Frenchlanguageprivatecommercialradiostations
(averageperstation)
3.5 1.0
3.0 0.8
Revenues($millions)
2.5
0.6
PBIT($millions)
2.0
0.4
1.5
0.2
1.0
0.5 0.0
0.0 0.2
2011 2012 2013 2014 2015
AMRevenue FMRevenue AMandFMRevenue
AMPBIT FMPBIT AMandFMPBIT
Source:CRTCdatacollection
AverageannualperstationrevenuesforFrenchlanguageprivatecommercialradiostationsremained
constantfrom2011to2015.ThiswaslargelyduetothestrengthofrevenuesfromFMstations.Revenues
fromFrenchlanguageAMradiostationshavedeclinedconsiderablysince2011.
102
Section4.1CMR2016
Figure4.1.10PBITandPBITmarginsofFrenchlanguageprivatecommercial
Frenchlanguageprivatecommercialradiostations
50 AMStations FMStations AMandFMStations 20%
45
PBITMargin(Percent)
40 15%
35
PBIT($millions)
30
10%
25
20
5%
15
10
5 0%
0
5 5%
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
PBIT PBITMargin
Source:CRTCdatacollection
Figure4.1.11AverageperstationannualrevenuesandPBITofEthnicprivatecommercialradiostations
Ethnicprivatecommercialradiostations
(averageperstation)
2.5 1.0
2.0 0.8
Revenues($millions)
PBIT($millions)
1.5 0.6
1.0 0.4
0.5 0.2
0.0 0.0
2011 2012 2013 2014 2015
AMRevenue FMRevenue AMandFMRevenue
AMPBIT FMPBIT AMandFMPBIT
Source:CRTCdatacollection
Averageannualrevenuesofprivateethniccommercialradiostationsfluctuatedaroundthe$2millionmark
overthelastfiveyears.From2011to2015,AMradiostationsoutperformedFMradiostationsintermsof
revenues,althoughthegapisclosing.
103
Section4.1CMR2016
Figure4.1.12PBITandPBITmarginEthnicprivatecommercialradiostations
Ethnicprivatecommercialradiostations
7 16%
PBITMargin(Percent)
6 14%
PBIT($millions)
12%
5
10%
4
8%
3
6%
2 4%
1 2%
0 0%
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
PBIT PBITMargin
Source:CRTCdatacollection
PBITsandPBITmarginsforprivateethniccommercialAMradiostationsincreasedeveryyearoverthepast5
years.PBITandPBITmarginsfortheprivateethniccommercialFMradiostationsremainedrelativelystable
from2014to2015,followingastrongincreasein2014.
104
Section4.1CMR2016
iii Availabilityofradioandaudioservices
CanadianshaveaccesstoanumberofdifferentaudioservicessuchasprivateAMandFMcommercialradio,
noncommercialAMandFMradio,Satellitesubscriptionradioservicesandpayandspecialtyaudioservices.
In2015,atotalof1,120serviceswereauthorizedtobroadcastinCanada,anincreaseof14overtheair
servicesandadecreaseof1pay/specialtyserviceover2014.Privatecommercialradiostationsaccountfor
almosttwothirdsofalltheaudioservicesinCanada,whilecommunitystations,thesecondmostnumerous
typeofaudioservice,represented12%ofallaudioservicesin2015.
Table4.1.7NumberandtypeofradioandaudioservicesauthorizedtobroadcastinCanada,bylanguageof
broadcast
ThistableshowsthenumberofradioservicesapprovedbytheCommission.Notallarenecessarilyin
operation.Overtheairradioservicesexcluderadiocommunicationdistributionundertakings,
rebroadcasters,andradioservicesexemptfromlicensingrequirements.Thesefiguresareasof31December
2015.
105
Section4.1CMR2016
Table4.1.8Numberofpublic/communitybasedandprivateradioservicesauthorizedtobroadcastovertheair,by
provinceandlanguageofbroadcast,2015
Noncommercial,touristinformationandemergencyradioservices,aswellasrebroadcastersareexcluded.
ThirdlanguageincludesNativelanguageservices.Thistableshowsthenumberofradioservicesapproved
bytheCommission.Allarenotnecessarilyinoperation.
Figure4.1.13TypesofradioandaudioservicesauthorizedtobroadcastinCanada,asapercentageofallsuch
services,2015
Typesofradioandaudioservicesauthorizedtobroadcastin
Canada,asapercentageofallsuchservices,2015
CBC/SRC,7.9%
Religious,4.5% Community,12.0%
Campus,4.2%
Aboriginal,4.4%
Other,1.2%
Satellite,multi
PrivateCommercial,
channelandaudio
64.9%
viaBDUs,1.0%
Source:CRTCdatacollection
In2015,privatecommercialradiostationsaccountedforalmosttwothirdsofthetotalnumberofstations
licensedforbroadcastinCanada.
106
Section4.1CMR2016
Table4.1.9Numberofnewovertheairradiostationslicensedcategorizedbylanguage,licencecategory,typeand
licensingprocess
Thistableshowsthenumberofstationslicensedbylanguage,licencecategory,typeofserviceandprocess
usedingrantingthelicence.
Thefollowingareexcluded:radiocommunicationdistributionundertakings,rebroadcasters,payaudio
services,specialtyaudioservices,andmultichannelsubscriptionservices.TheOtherlicencecategory
includesnotforprofitstations,suchasthoseoperatedinEnglishandinFrenchbytheCBC,andEnvironment
Canada.
107
Section4.1CMR2016
Figure4.1.14PercentageofCanadiansaccessingonlinestreamedaudioservicesmonthly,bylanguagegroup
PercentageofCanadiansaccessingonlinestreamedaudioservicesmonthly,by
languagegroup(%)
94
Regularradio
2015 88
89
listener
93
2014 88
89
15
Podcastlistener
2015 24
22
14
2014 22
21
videosonYouTube
51
Streammusic
2015 56
55
49
2014 53
52
personalizedonline
17
musicservice
2015 21
20
Stream
13
2014 19
18
20
StreamAM/FM
2015 23
23
radio
19
2014 23
22
0 10 20 30 40 50 60 70 80 90 100
108
Section4.1CMR2016
Figure4.1.15Satelliteradiosubscriptions,bylanguagegroup
Satelliteradiosubscriptions,bylanguagegroup
20 19
18
18 17
16 16 16
16 15 15
14
PercentageofCanadians
14 13 13
12 11
10 9
8
8 7 7 7
6
6
0
2010 2011 2012 2013 2014 2015
109
Section4.1CMR2016
iv Audiencemeasurement
Audiencemeasurementdataisimportantnotonlytoindustrystakeholders,whousethedatatohelpsellair
timetoadvertisers,butalsototheCRTC,whichusesthedatatoassesstheeffectivenessofitspoliciesby
understandingthereachofprogrammingacrossthecountryandacrossvariousdemographics.
AudiencemeasurementdataiscompiledbyNumeristhroughtheuseofportablepeoplemeter
(electronicdata)anddiarysurveys(writtenlogs).Nationalfiguresarebasedonbothdatasets.
PPMdataincludesonlyPPMmeterservicestationsreportedbyNumerisonanindividualbasisin
designatedPPMmarkets.PPMmarketsareCalgary,Edmonton,Montral,TorontoandVancouver.
Allremainingstations,includingdiaryspillstations,areincludedinthediarydata.
RadioseasonsusedbyNumeriswere:
o 2015PPMweeks113(31Augustto29November,inclusive),allpersons12+,Mondayto
Sunday,2a.m.to2a.m.(TotalCanada),andFall2015RadioDiarySurveyData(7September
to1November,inclusive),allpersons12+,MondaytoSunday,5a.m.to1a.m.(TotalDiary
Canada);
o 2014PPMweeks113(1Septemberto30November,inclusive),allpersons12+,Mondayto
Sunday,2a.m.to2a.m.(TotalCanada),andFall2014RadioDiarySurveyData(1September
to26October,inclusive),allpersons12+,MondaytoSunday,5a.m.to1a.m.(TotalDiary
Canada);
o 2013PPMweeks113(26Augustto24November,inclusive),allpersons12+,Mondayto
Sunday,2a.m.to2a.m.(TotalCanada),andFall2013RadioDiarySurveyData(2September
to27October,inclusive),allpersons12+,MondaytoSunday,5a.m.to1a.m.(TotalDiary
Canada);
o 2012PPMweeks113(27Augustto25November,inclusive),allpersons12+,Mondayto
Sunday,2a.m.to2a.m.(TotalCanada),andFall2012RadioDiarySurveyData(3September
to28October,inclusive),allpersons12+,MondaytoSunday,5a.m.to1a.m.(TotalDiary
Canada);
o 2011PPMweeks113(29Augustto27November,inclusive),allpersons12+,Mondayto
Sunday,2a.m.to2a.m.(TotalCanada),andFall2011RadioDiarySurveyData(5September
to30October,inclusive),allpersons12+,MondaytoSunday,5a.m.to1a.m.(TotalDiary
Canada);
110
Section4.1CMR2016
Table4.1.10AverageweeklyhoursofradiotunedpercapitabyagegroupforallCanada
Growth(%)
2011 2012 2013 2014 2015
Agegroup 20142015
Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM
Allpersons12+ 17.7 8.3 17.5 7.1 17.0 7.1 16.5 7.0 16.2 7.0 1.8 0.0
Teens1217 7.3 4.0 6.9 3.7 6.5 3.7 6.0 3.7 5.8 3.3 3.3 10.8
1824 12.5 5.8 12.5 5.0 11.5 4.4 11.4 4.6 10.6 4.7 7.0 2.2
2534 16.8 6.5 16.6 5.8 16.0 5.7 15.4 5.8 15.0 5.9 2.6 1.7
3549 19.8 8.2 19.3 7.8 18.7 7.4 18.0 7.4 17.4 7.6 3.3 2.7
5054 21.3 9.5 20.9 8.8 21.1 8.5 19.8 7.6 19.8 8.0 0.0 5.3
5564 20.0 9.5 19.9 7.6 19.4 8.2 18.9 8.0 18.5 7.7 2.1 3.8
65+ 19.4 12.0 19.1 9.1 18.8 9.3 18.4 9.1 18.3 9.1 0.5 0.0
Source:Numeris
Thistableshowsthatforthethirdconsecutiveyear,allagedemographics,exceptthe65+,recordeddecreases
indiarymarkets6.Theaveragenumberofhoursperweekpercapitaisdeterminedbydividingthetotal
numberofhourstunedbythepopulation.
Table4.1.11Radiotuningshare(%)inanaverageweekforEnglishandFrenchlanguageAMandFMstations
Growth(%)
2011 2012 2013 2014 2015
Radiostationtype 20142015
Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM
EnglishlanguageAM 15.7 21.8 14.7 21.2 14.2 20.9 13.6 22.6 14.5 25.7 6.6 13.7
EnglishlanguageFM 57.0 55.0 57.5 54.3 58.4 55.4 59.1 56.5 57.2 54.1 3.2 4.3
Englishtotal 72.7 76.8 72.2 75.5 72.6 76.2 72.7 79.0 71.7 79.8 1.4 1.0
FrenchlanguageAM 0.2 0.2 0.1 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.0 0.0
FrenchlanguageFM 20.3 22.8 21.3 24.1 20.9 23.2 21.0 20.6 20.7 19.8 1.4 3.9
Frenchtotal 20.5 22.9 21.4 24.2 20.9 23.4 21.1 20.7 20.8 19.9 1.4 3.9
Other 6.9 0.2 6.4 0.3 6.5 0.4 6.2 0.3 7.2 0.2 16.1 33.3
Source:Numeris
Thistableshowsradiotuningbyfrequencybandandbylanguageofbroadcastoverthepastfiveyears.The
OthercategoryismainlyovertheairtuningtoU.S.borderstations(diary),butalsoincludestuningto
InternetradiothatisnotattributedtoCanadianovertheairradiostations,multichannelsubscription
(satelliteradio)services,payandspecialtyaudioservices,overtheairandvideoservicesavailableoncable,
andunknownsources.
6
DiarymarketsaredefinedasmarketsotherthanCalgary,Edmonton,Montral,TorontoandVancouver.
111
Section4.1CMR2016
Table4.1.12AverageweeklyhoursofradiotunedbylistenerforEnglishandFrenchlanguageAMandFMstations
Growth(%)
2011 2012 2013 2014 2015
Tuning 20142015
Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM
Averagenumberof
weeklyhoursper 19.9 9.9 19.6 9.8 19.3 9.7 18.8 9.5 18.4 9.7 2.1 2.1
listener
Totalaverageweekly
nationalhours 303.8 164.5 303.9 166.5 299.0 167.7 289.0 167.6 288.0 169.4 0.3 1.1
(millions)
Source:Numeris
Theaveragenumberofweeklyhoursperlistenerisdeterminedbydividingthetotalnumberofhourstunedby
reach,whichisthenumberofdifferentpersonswhotuneinforatleastonequarterhourwithinaspecified
timeperiod,asestimatedbyNumeris.
Table4.1.13Tuning(millionsofhours)andtuningshare(%)achievedbythelargestEnglishlanguageprivate
commercialradiooperatorsinCanadainanaverageweek
112
Section4.1CMR2016
Table4.1.14Tuning(millionsofhours)andtuningshare(%)achievedbythelargestFrenchlanguageprivate
commercialradiooperatorsinCanadainanaverageweek
Thesetablespresenttuningdatabylargeradioownershipgroups,bylanguage,fortheyears2013through
2015.
InBroadcastingDecision2013310,theCommissionapprovedthechangeineffectivecontrolofAstrals21
Frenchlanguageand63EnglishlanguageradiostationstoBCE,subjecttothedivestiturebyBCEof10
Englishlanguage(7Astraland3BCE)radiostations,andthetransferoftheirmanagementandcontroltoa
trustee(PierreBoivin),pendingtheirsaletothirdparties;
SeveraldivestedstationsfromPierreBoivinhavebeenacquiredbyotherlargeprivatecommercialradio
operators,hencethefluctuationbyoperatorinlisteninghours(20132014).
113
Section4.1CMR2016
Figure4.1.16Radiotuningbystationtypeindiarymarkets,2015
Radiotuningbystationtypeindiarymarkets
UnitedStates,3%
AudioServices,4%
PrivateCommercial,
73% CBC/SRC,16%
Community&
Campus,2%
Ethnic&Native,
lessthan1%
Other,1%
Sources: Numeris,2015andCRTCdatacollection
Thistableshowsthedifferenttypesofradiostationstunedbylistenersindiarymarketsin2015.
TheAudioservicessegmentincludestuningtomultichannelsubscription(satelliteradio)services,payand
specialtyaudioservices,overtheairradiostations,andvideoservicesbroadcastovercableandtheInternet.
Table4.1.15RadiotuningsharesEnglishlanguageradiostationformatsindiarymarkets,2015
Audience Numberof
Topformats
share stations
TodaysCountry 16% 103
CBCRadioOne 15% 34
AdultContemporary 10% 107
HotAdultContemporary 10% 85
Albumoriented/mainstreamRock 8% 53
News/Talk 8% 41
ClassicHits 7% 58
MainstreamTop40/CHR 7% 41
ClassicRock 5% 26
CBCRadioTwo 3% 9
Other 8% 128
Sources:NumerisFall2015andCRTCdatacollection
Otherformatsroundingto100include:ModernRock(12stns,2%),community/campus/tourism(88stns,1%,
Gold/Oldies(11stns,1%),AdultStandards(1stn,1%),AlternativeRock(12stns,2%),Classical/FineArts(4
stns,1%).
114
Section4.1CMR2016
Table4.1.16RadiotuningsharesFrenchlanguageradiostationformatsindiarymarkets,2015
Audience Numberof
Topformats
share stations
AdultContemporary 24% 36
News/Talk 17% 8
MainstreamTop40/CHR 14% 15
HotAdultContemporary 13% 19
IciRadioCanadaPremire 12% 17
Community 7% 50
IciMusique 4% 10
ClassicHits 2% 3
AdultAlbumAlternative 2% 1
Classical/FineArts 2% 2
Other 2% 4
Sources:NumerisFall2015andCRTCdatacollection
Otherformatsroundingto100include:Modern/AlternativeRock(1stn,1%),Oldies(3stn,1%).
AmongCanadiansindiarymarketslisteningtoEnglishlanguageradiostations,over50%oflisteninghours
wenttocountry,CBCRadioOne,adultcontemporary,andhotadultcontemporaryformats.AmongFrench
languageradiostationlisteners,almostaquarteroflisteninghourswenttotheadultcontemporaryformat.
Table4.1.17RadiotuningsharesEnglishlanguageradiostationformatsinPPMmarkets,2015
Audience Numberof
Topformats
share stations
News/Talk 17% 11
AdultContemporary 15% 10
CBCRadioOne 13% 5
MainstreamTop40/CHR 10% 10
HotAC 8% 4
ClassicHits 8% 7
ClassicRock 6% 4
Mainstream/ModernRock 6% 7
SportsTalk 5% 7
Country 4% 4
Other 9% 9
Sources:Numeris2015andCRTCdatacollection
Otherformatsroundingto100are:CBCRadio2(5stns,4%),AdultStandards(2stns,4%),Jazz(1stn,0.5%)
andCampus(1stn,0.5%).
115
Section4.1CMR2016
Table4.1.18RadiotuningsharesFrenchlanguageradiostationformatsinPPMmarkets,2015
Audience Numberof
Topformats
share stations
AdultContemporary 32% 3
News/Talk 28% 2
CHR 20% 2
ICIRadioCanadaPremire 12% 4
ClassicalMusic 4% 1
ICIMusique 4% 4
Sources:Numeris2015andCRTCdatacollection
Otherformatroundingto100are:Traffic(1stn,0%)
116
Section4.1CMR2016
v Programmingcontributionsandexpenditures
TheCRTCusesanumberofapproachestoachievethecultural,social,andeconomicobjectivessetoutinthe
BroadcastingAct.Onesuchinstrumenthasbeentheestablishmentofvariouscontributionandexpenditure
regimes.
Inthe20142015broadcastyear,commercialradiooperatorscontributed3centsperrevenuedollarto
supportCanadianContentDevelopment(CCD).Collectively,theycontributednearly$48milliontothe
developmentofCanadiancontent,adecreaseof20%overthepreviousperiod.Approximately55%ofthe
fundswereadirectresultoftheconditionsoflicenceissuedtonewradiostationsandtangiblebenefitspaid
followingachangeinownershiporcontrolofradiostations.
WhataretangiblebenefitsandCCDcontributions?Intheabsenceofacompetitivelicensingprocess
relatingtotransfersofownershiporcontrolofradioortelevisionservices,tangiblebenefits,which
arefinancialcontributionsproportionatetothevalueofthetransaction(6%minimumforradioand
10%minimumfortelevisionservice),arerequiredtobemadetothebroadcastingsystembythe
purchaserofalicensedradioortelevisionservice.Theyareusuallypaidoverfivetoseven
consecutivebroadcastyears.Tangiblebenefitsisonemeans,usedbytheCommission,ofensuring
thebestpossibleproposalbytheapplicantandthatapprovalisinthepublicinterest,consistentwith
theoverallobjectivesoftheBroadcastingAct.
CanadianContentDevelopment(CCD)contributionsarefinancialcontributionsmadebyradio
broadcasterstosupportthedevelopmentandpromotionofCanadianmusicalandspokenword
contentforbroadcast.MostapplicantsmakespecificCCDcommitmentsaspartofapplicationsfor
newlicencesandastangiblebenefitsatthetimeoftransferofownershipandcontrolofradio
stations.CommercialandethnicstationsarefurthersubjecttoregulationsrequiringannualCCD
contributions.
Thesefinancialcontributionsserve,amongotherthings,tofosterthecreationofCanadiancontent,
tohelpadvancethecareersofemergingCanadianartists,andtoincreasethesupplyofquality
Canadianmusicinavarietyofgenres.
117
Section4.1CMR2016
Chart4.1.1RadioCCDcontributionsstructure
FACTOR Canadian
Contributions RadioStarmaker music
MUSICACTION
CommunityRadioFund
BasicAnnualCCD Otherinitiatives
contributions Artists
Overandabove Musicindustry
contributions associations
Tangiblebenefitsfrom Localmusicinitiatives
Newspokenwordcontent
Commercial changesinownership
Fundsand Musicorganizations
radiostations initiatives Festivalsandconferences
Schoolsandinstitutions
CommercialradiobroadcasterssupportCCDfinanciallyasaresultofthreeregulatoryprocesses:
BasicannualCCDcontributions;
AdditionalcontributionsoverandabovethebasicCCDcontribution(usuallyrelatedtoapplicationsfornewlicences);and
Contributionsmadeinrelationtoapplicationsfortransfersofownershiporcontrol(tangiblebenefits).
118
Section4.1CMR2016
Figure4.1.17CCDcontributionsbyregulatorymeasure($millions)
18 22 31
21
19
8
9
15
20 22
28
24
17
8 7
Figure4.1.18CCDcontributionsbyregulatorymeasure(percentage)
33.2%
39.9% 39.5% 40.6%
CCDCONTRIBUTIONS(PERCENT)
52.6%
14.4%
16.5%
28.7%
45.1%
34.2%
52.5%
43.6%
31.8%
13.2% 14.3%
Source:CRTCdatacollection
119
Section4.1CMR2016
Table4.1.19SummaryofannualCCDcontributionsreportedbyradiostationlicensees($thousands)
Growth(%) CAGR(%)
2010 2011 2012 2013 2014
CCDcategory 201314to 201011to
2011 2012 2013 2014 2015
201415 201415
FACTOR 10,755 10,545 12,022 13,982 10,090 27.8 1.6
MUSICACTION 1,930 2,538 2,426 3,596 3,461 3.7 15.7
CRFC 346 1,509 1,722 2,922 2,954 1.1 71.0
MusicIndustryAssociation 4,360 3,754 4,334 3,168 3,591 13.4 4.7
Localmusicinitiatives 10,833 13,777 10,538 10,731 10,552 1.7 0.7
Newspokenwordcontent 1,340 943 253 292 75 74.3 51.3
Audiocontentinitiatives 135 135 531 968 638 34.1 47.5
Schoolsandeducationalinstitutions 2,700 2,383 1,430 1,818 1,405 22.7 15.1
RadioStarmakerFund/Fonds
10,783 11,783 10,985 15,902 9,479 40.4 3.2
RadioStar
OthereligibleCCDinitiatives 10,815 7,713 8,114 6,190 5,507 11.0 15.5
Total 53,996 55,080 52,356 59,567 47,753 19.8 3.0
Source:CRTCdatacollection
Contributionsarebasedonannualpaymentsreportedbylicenseesforthebroadcastyear(i.e.,1Septemberto
31August).ContributionsincludethosemadeunderboththeCCDandtheformerCanadiantalent
developmentregimes.Figuresforthe20122013broadcastyearincludecontributionsmadebypayaudio
undertakings.Thecontributionsmadebysatelliteradioserviceshavebeensplitbetweenthefirstlicenceterm
andthelicencerenewalsections(25%and75%,respectively),basedonalicencerenewaldateof1December.
Table4.1.20AnnualCCDcontributionsreportedbynewradiostationlicenseesduringthefirstlicenceterm($
thousands)
Growth(%) CAGR(%)
2010 2011 2012 2013 2014
CCDcategory 201314to 201011to
2011 2012 2013 2014 2015
201415 201415
FACTOR 2,719 2,615 2,818 2,008 1,544 23.1 13.2
MUSICACTION 791 563 242 255 403 57.9 15.5
CommunityRadioFundofCanada 165 17 21 21 4.6
MusicIndustryAssociation 2,493 2,221 2,342 1,754 1,477 15.8 12.3
Localmusicinitiatives 7,485 9,106 5,524 3,275 2,446 25.3 24.4
Newspokenwordcontent 1,139 545 192 171
Audiocontentinitiatives 172 585 153 73.9
Schoolsandeducationalinstitutions 2,020 1,553 886 516 435 15.8 31.9
RadioStarmakerFund/Fonds
1,982 1,038 466
RadioStar
OthereligibleCCDinitiatives 9,714 6,195 3,986 352 355 0.8 56.3
Total 28,342 24,001 16,644 8,935 6,833 23.5 29.9
Source:CRTCdatacollection
Contributionsarebasedonannualpaymentsreportedbylicenseesforthebroadcastyear(i.e.,1Septemberto
31August).ContributionsincludethosemadeunderboththeCCDandtheformerCanadiantalent
developmentregimes.Figuresforthe20122013broadcastyearincludecontributionsmadebypayaudio
undertakings.Thecontributionsmadebysatelliteradioserviceshavebeensplitbetweenthefirstlicenceterm
andthelicencerenewalsections(25%and75%,respectively),basedonalicencerenewaldateof1December.
120
Section4.1CMR2016
Table4.1.21AnnualCCDcontributionsreportedbyradiolicenseesinthecontextoflicencerenewals($thousands)
Growth(%) CAGR(%)
2010 2011 2012 2013 2014
CCDcategory 201314to 201011to
2011 2012 2013 2014 2015
201415 201415
FACTOR 2,629 1,971 3,152 4,156 4,847 16.6 16.5
MUSICACTION 808 727 1,414 1,681 1,695 0.9 20.3
CommunityRadioFundofCanada 617 1,020 1,305 1,342 2.8
MusicIndustryAssociation 823 966 1,607 932 1,735 86.2 20.5
Localmusicinitiatives 1,947 2,381 3,352 4,417 5,665 28.2 30.6
Newspokenwordcontent 201 398 61 121 35 71.1 35.4
Audiocontentinitiatives 446
Schoolsandeducationalinstitutions 473 614 342 948 760 19.9 12.6
RadioStarmakerFund/Fonds
246 35 52 100.0
RadioStar
OthereligibleCCDinitiatives 873 1,194 4,026 5,716 5,020 12.2 54.9
Total 7,754 9,114 15,010 19,328 21,545 11.5 29.1
Source:CRTCdatacollection
Contributionsarebasedonannualpaymentsreportedbylicenseesforthebroadcastyear(i.e.,1Septemberto
31August).ContributionsincludethosemadeunderboththeCCDandtheformerCanadiantalent
developmentregimes.Figuresforthe20122013broadcastyearincludecontributionsmadebypayaudio
undertakings.Thecontributionsmadebysatelliteradioserviceshavebeensplitbetweenthefirstlicenceterm
andthelicencerenewalsections(25%and75%,respectively),basedonalicencerenewaldateof1December.
Table4.1.22AnnualCCDcontributionsreportedbyradiolicenseesinthecontextofchangesinownershipand/or
control($thousands)
Growth(%) CAGR(%)
2010 2011 2012 2013 2014
CCDcategory 201314to 201011to
2011 2012 2013 2014 2015
201415 201415
FACTOR 5,407 5,959 6,053 7,818 3,699 52.7 9.1
MUSICACTION 331 1,248 770 1,660 1,362 17.9 42.4
CommunityRadioFundofCanada 346 727 684 1,596 1,591 0.4 46.5
MusicIndustryAssociation 1,044 567 386 482 379 21.5 22.4
Localmusicinitiatives 1,401 2,290 1,662 3,038 2,442 19.6 14.9
Newspokenwordcontent 40
Audiocontentinitiatives 135 135 359 383 40 89.6 26.2
Schoolsandeducationalinstitutions 207 216 203 354 211 40,4 0.4
RadioStarmakerFund/Fonds
8,801 10,499 10,483 15,850 9,479 40.2 1.9
RadioStar
OthereligibleCCDinitiatives 228 324 102 122 133 8.6 12.7
Total 17,900 21,965 20,702 31,303 19,376 38.1 2.0
Source:CRTCdatacollection
Contributionsarebasedonannualpaymentsreportedbylicenseesforthebroadcastyear(i.e.,1Septemberto
31August).ContributionsincludethosemadeunderboththeCCDandtheformerCanadiantalent
developmentregimes.Figuresforthe20122013broadcastyearincludecontributionsmadebypayaudio
undertakings.Thecontributionsmadebysatelliteradioserviceshavebeensplitbetweenthefirstlicenceterm
andthelicencerenewalsections(25%and75%,respectively),basedonalicencerenewaldateof1December.
121
Section4.1CMR2016
vi Tangiblebenefits
In2015,6transactionswereapprovedforbothEnglishandFrenchlanguageservicesresultingintotal
tangiblebenefitsof$7.9million,a49%decreaseover2014.
Table4.1.23Numberofradioservicetransactions,valueofthosetransactionsandcorrespondingtangiblebenefits
fortheperiodfrom1January2011to31December2015($millions)
Languageof
Metric 2011 2012 2013 2014 2015 Total
services
Numberof
9 5 4 9 6 33
Transactions
English
Value($M) 316.2 80.4 756.7 257.7 55.1 1,446.1
Benefits($M) 19.0 4.8 52.0 15.5 4.0 95.3
Numberof
3 2 1 6 12
Transactions
French
Values($M) 1.5 357.7 54.6 413.8
Benefits($M) 0.1 25.0 3.9 29.0
Sources:CRTCdecisionsandadministrativeapprovals
TheBCE/CTVglobemediaInc.ownershiptransaction,whichoccurredin2011(seeBroadcastingDecision2011
163),resultedin$17.5millionintangiblebenefits;and
TheBCE/Astralownershiptransaction,whichoccurredin2013(seeBroadcastingDecision2013310),resulted
in$71.5millionintangiblebenefits.Approximately$46.5millionofthisamountwascommittedtoEnglish
languageinitiativesand$25milliontoFrenchlanguageinitiatives.Initsdecision,theCommissiondirected
BCEtodivestitselfof10radioservices.Thesedivestituresareexpectedtogeneratenotlessthan$11million
inadditionaltangiblebenefitcommitmentsfromotherpurchasers.InDecember2013,theCommission
approvedthedivestitureof3radiostations(CFQXFMSelkirkandCHIQFMWinnipeg,Manitoba,andCKCE
FMCalgary,Alberta)totheJimPattisonBroadcastGroupLimitedPartnership(Pattison).Pattisonhas
committed$1.8millionintangiblebenefitsinitiatives.
122
Section4.1CMR2016
vii Programmingofhighstandards
TheBroadcastingActsetsoutthatprogrammingprovidedbybroadcastingundertakingsshouldbeofhigh
standard.InadditiontotheCRTC,twobodiesdealwithprogrammingcomplaintsrelatingtopublicand
communitybroadcasters,aswellasnonmembersoftheCBSC.TheCRTCalsodealswithissuesthatare
outsidetheparametersofthecodesadministeredbytheCBSC.
TheCBSCadministersspecificcodesofbroadcastconductandprovidesameansofrecourseformembersof
thepublicregardingtheapplicationofthestandardssetoutinthefollowingcodes:
CABCodeofEthics;
CABViolenceCode;
CABEquitablePortrayalCode;and
RadioTelevisionDigitalNewsAssociationofCanada(RTDNACanada)CodeofEthics.
TheCanadianBroadcastStandardsCouncil(CBSC)isanindependentorganizationcreatedbytheCanadian
AssociationofBroadcasters(CAB)toadministerstandardsestablishedbyCanadasprivatebroadcasters.The
CBSCsmembershipincludesmorethan790privatesectorradioandtelevisionstations,specialtyservices,
payservices,andnetworksacrossCanada.MembershipincludesbroadcastersbroadcastinginEnglish,
French,andthirdlanguages.Formoreinformation,visitwww.cbsc.ca.
TheAdvertisingStandardsCanada(ASC)isanational,notforprofitadvertisingselfregulatorybodythat
respondstocomplaintsbyconsumersandspecialinterestgroupsregardingadvertisingwithrespecttoall
mediasubjecttotheCanadianCodeofAdvertisingStandards,theprincipalinstrumentofadvertisingself
regulation.
TheASCrespondstocomplaintsbyconsumersandspecialinterestgroupsregardingadvertisingwithrespect
toallmediasubjecttotheCanadianCodeofAdvertisingStandards,theprincipalinstrumentofadvertising
selfregulation.Inaddition,theASCundertakespreclearancefunctionsinfiveindustrycategories,which
consistofreviewingadvertisementsbasedonapplicablelegislation,regulations,and/orindustrycodesand
guidelines.
AdditionalinformationontheASCcanbefoundat:www.adstandards.com/en/
Table4.1.24NumberofradiorelatedcontactsreceivedbytheCRTC,bytypeofissue
Quality
CRTC Billing Terms
Fiscal of Accessibility
policies/ and Programming Loudness Other
year service/ issues
decisions conditions
delivery
2014
847 3 41 3 0 802 9 227
2015
2015
695 4 33 0 0 456 13 46
2016
Source:CRTCcorrespondencetrackingsystem
123
Section4.1CMR2016
Table4.1.25Numberofradiocomplaintsbysubjectmatter
124
Section4.1CMR2016
Table4.1.26RadiocomplaintshandledbytheCBSCin2015bylanguageandnationalorigin
Subscription
Category Subcategory Radio radio Total
(satellite)
English 212 4 216
French 215 0 215
LanguageofBroadcastofprogram Thirdlanguage 8 0 8
Other 0 0 0
Total 435 4 439
Canadian 415 1 416
Foreign 13 2 15
Nationaloriginofprogram
Other 7 1 8
Total 435 4 439
Source:CBSC,20142015annualreport
Table4.1.27ComplaintshandledbytheASC
ThistableshowsthenumberofcomplaintshandledbytheASCrelatingtoadvertisementsonradioasa
percentageofthetotalnumberofcomplaintshandled.In2015,5%ofthosecomplaintsrelatedtoradio
advertisements.
125
Section4.1CMR2016
viii Ownershipgroups
Between2013and2015,Canadassixlargestcommercialradiooperatorstogetheraccountedfornearly70%
ofthecommercialradioindustrysrevenues.Theyalsoaccountedforapproximately40%ofthetotalnumber
ofradioundertakingsinthecountry.
Table4.1.28EnglishlanguageandFrenchlanguageradiorevenuesandnumberofundertakingsreportingforthe
largestcommercialradiooperatorsinCanada
Numberofradio
Shareoftotal
Revenues($thousands) undertakings
Language Radiooperators revenue(%)
reporting
2013 2014 2015 2013 2014 2015 2013 2014 2015
BCE 422,708 414,116 410,835 109 107 106 26 26 26
PierreBoivin(BCEintrust) 51,518 N/A N/A 10 N/A N/A 3 N/A N/A
Astral N/A N/A N/A N/A N/A N/A N/A N/A N/A
Rogers 224,520 228,485 233,380 55 55 53 14 14 15
Corus 173,909 164,525 152,433 37 39 39 11 10 10
All
HaroldR.Steele(Newcap) 122,365 156,289 152,471 62 69 67 8 10 10
languages
Cogeco 106,613 109,943 106,718 13 13 13 7 7 7
Totallargestcommercial
1,101,633 1,073,357 1,055,837 286 283 278 69 67 68
radiooperators
Totalallcommercialradio
1,621,944 1,613,471 1,602,534 718 703 715 100 100 100
operators
BCE 313,998 306,288 305,905 88 86 85 24 23 24
PierreBoivin(BCEintrust) 51,518 N/A N/A 10 N/A N/A 4 N/A N/A
Astral N/A N/A N/A N/A N/A N/A N/A N/A N/A
Rogers 223,374 227,267 232,096 54 54 52 17 18 18
Corus 173,909 164,525 152,433 37 39 39 13 13 12
English
HaroldR.Steele(Newcap) 122,365 156,289 152,471 62 69 67 9 12 12
language
TotalEnglishlanguage
largestcommercialradio 885,164 854,367 842,906 251 248 243 67 65 66
operators
TotalEnglishlanguage
1,317,706 1,304,965 1,297,201 595 583 593 100 100 100
commercialradiooperators
BCE 108,710 107,828 104,930 21 21 21 42 41 41
Astral N/A N/A N/A N/A N/A N/A N/A N/A N/A
Cogeco N/A N/A N/A 12 12 12 N/A N/A N/A
French
Totallargestcommercial
language 108,710 107,828 104,930 33 33 33 42 41 41
radiooperators
TotalFrenchlanguage
258,025 263,513 263,513 98 96 99 100 100 100
commercialradiooperators
Source:CRTCdatacollection
Thetotalnumberofservicesownedbyprivate,EnglishandFrenchlanguageradiooperatorsincludes
commercialnetworksandethniccommercialradiostations.Transfersofownershiporcontrolofradioservices
toorfromownershipgroupsaredeemedtohaveoccurredinthebroadcastyearinwhichtheproposed
transferwasapprovedbytheCRTCandnotontheclosingdateofthetransaction.Further,theradioservices
entireannualrevenueisattributedtoitsdeemedownershipgroup.Cogecosrevenuedatahavebeen
removedfromthecategorylargestFrenchlanguagecommercialradiocorporationsduetoresidual
disclosureissues;
126
Section4.1CMR2016
InBroadcastingDecision2013310,theCommissionapprovedthechangeineffectivecontrolofAstral's21
Frenchlanguageand63EnglishlanguageradiostationstoBCE,subjecttothedivestiturebyBCEof10
Englishlanguage(7Astraland3BCE)radiostations,andthetransferoftheirmanagementandcontroltoa
trustee(PierreBoivin),pendingtheirsaletothirdparties.TheservicesbeingheldintrustbyPierreBoivinare
indicatedseparately,butareincludedintheBCE2013data.
127
Section4.1CMR2016
128
Section4.2CMR2016
4.2 Televisionsector
129
Section4.2CMR2016
Canadianshaveaccesstoover600CanadianandnonCanadiantelevisionservices.Moststillwatchtelevision
bytraditionalmeans,whetheritbeovertheair,orviacable,satelliteorIPTV.However,Canadiansarealso
turningtonewplatformsanddevicesconnectedtotheInternetfortheirvideocontentconsumption.
Accordingto201415audiencemeasurementdata,Canadianstwoyearsofageandolderarewatchingan
averageofmorethan27hoursoftelevisioneachweek.Youngerdemographicsarewatchinglesstelevision.
Forexample,duringthatperiod,the1834demographicwatched19.7hoursoftelevisioneachweek,three
hourslessthanfiveyearsearlier.
In2015,theprivateconventionaltelevisionsectorreported$1.76billioninrevenues,comparedto$4.3
billionfordiscretionaryservices(pay,payperview,videoondemandandspecialtyservices).Thetelevision
industrysfivelargeownershipgroupsreportedover90%ofalltelevisionrevenues.
TheEnglishlanguageprivateconventionaltelevisionsectorincludesthreemajorownershipgroups:BCE(CTV
andCTVTwo),witha49%revenueshare;Shaw(Global),witha28%revenueshare;andRogers(Cityand
OMNI),witha15%revenueshare.TheFrenchlanguageprivateconventionaltelevisionsectorhastwomajor
players:Qubecor(TVA),witha70%revenueshare;andRemstar(V),witha20%revenueshare.
In2015,theCBC,Canadasnationalpublicbroadcaster,reported$1.1billioninrevenues,68%ofwhichwas
parliamentaryappropriations.
Collectively,broadcasterscontributednearly$3billiontoCanadianprogrammingexpenditures(CPE),15%of
whichwasspentonProgramsofNationalInterest(PNI)in2015.Foreachdollarearned,televisionservices
invested45centsinsupportofCanadianprogrammingduringthe20142015broadcastyear.
130
Section4.2CMR2016
i Revenues
Totalrevenuesgeneratedinthetelevisionindustry7,privateandCBCconventionaltelevisionand
discretionaryservicescombined,edgeddown0.4%ayearoverthe20112015periodandtotalled$7,118
millionin2015.
ConventionaltelevisionservicesownedbybothprivateoperatorsandtheCBCgenerated$2,864millionin
revenuesin2015,an8.6%decreaseover2014.
The93privatelyownedconventionalstationsinoperationin2015garnered$1,757million,down2.6%(or
$46.6million)from2014.TheterminationoftheLocalProgrammingImprovementFund(LPIF)accountsfor
$21.7millionoftheyearoveryearlossforprivateconventionalstations.
The27CBC/RadioCanadaconventionaltelevisionstationsreportedtotalrevenuesof$1.11billionin2015,
down$220.9million(or16.6%)from2014.TheterminationoftheLPIFresultedin$17.6millionlessrevenues
fortheCBCin2015comparedtothepreviousyear.
Revenuesgeneratedbydiscretionaryservices,alltypesofservicescombined,advanced3.2%ayearon
averagebetween2011and2015toreach$4,255millionin2015.Onayearoveryearbasis,however,these
servicesedgedupamodest0.4%($19.0million)in2015incomparisonto2014,theslowestpaceofgrowth
inthatsectorsince2009.
Table4.2.1Revenuesoftelevisionservices,bytypeofservice($millions)
Growth(%) CAGR(%)
Type Subtype 2011 2012 2013 2014 2015
20142015 20112015
Private 2,139 2,038 1,944 1,804 1,757 2.6 4.8
Conventional
CBC 1,339 1,369 1,247 1,328 1,107 16.6 4.6
televisionservices
Subtotal 3,478 3,407 3,191 3,132 2,864 8.6 4.7
Pay,PPV,andVOD 856 837 799 788 738 6.3 3.6
Discretionary
Specialty 2,892 3,130 3,292 3,448 3,516 2.0 5.0
services
Subtotal 3,748 3,968 4,091 4,236 4,255 0.4 3.2
Allservices Total 7,226 7,375 7,282 7,368 7,118 3.4 0.4
Source:CRTCdatacollection
Thistableshowsthechangeintelevisionrevenuesbytypeofservicefortheperiodfrom2011to2015.
Revenuedeclinesforconventionaltelevisionservicesarepartlyattributabletoanapproximatedropof$300
millionforCBCconventionaltelevisionadvertising.Also,LPIFwasterminatedonAugust31,2014.
7
Totalrevenuesgeneratedinthetelevisionindustrydoesnotincludedigitalmediarevenues.
131
Section4.2CMR2016
Figure4.2.1Televisionservicesrevenues,bytypeofservice($millions)
Revenuesoftelevisionservices,bytypeofservice($millions)
TotalRevenues AdvertisingRevenues SubscriberRevenues
8,000
7,226 7,375 7,282 7,368 7,118
7,000
1,3391,3691,2471,3281,107
6,000
Revenues($millions)
5,000 1,9441,8041,757
2,1392,038
4,000 3,548 3,469 3,386 3,371
370 373 331 3,081 2,894 2,925
3,000 475 220 2,623 2,725
2,419
4,236 4,254 1,944 1,8321,758 1,6421,626
2,000 3,748 3,968 4,091
2,894 2,925
2,419 2,623 2,725
1,000
1,234 1,264 1,297 1,254 1,235
0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Specialty,Pay,PPVandVODServices PrivateConventionalTelevision CBCConventionalTelevision
Source:CRTCdatacollection
Totalrevenuesincludeotherrevenues(i.e.,thosetiedtoabroadcastinglicencebutnotstemmingfrom
broadcastingactivities,forexample,fundraisers)andfundingfromtheLocalProgrammingImprovement
Fund(LPIF).Advertisingrevenuesincludeinfomercialsales.
Figure4.2.2Privateconventionaltelevisionrevenuesources(%),2015
Privateconventionaltelevisionrevenuesources,2015
SyndicatedProduction
Other
1%
6%
Infomercials
LocalTimeSales
1%
19%
NetworkPayments
6%
NationalTimeSales
67%
Source:CRTCdatacollection
132
Section4.2CMR2016
Figure4.2.3AdvertisingrevenuesofconventionaltelevisionstationsownedandoperatedbytheCBC
Advertisingrevenuesofconventionaltelevisionstationsownedand
operatedbytheCBC
600 100
Revenues($millions)
500 80
Percentage(%)
66.5 65.7
400 60.4 70.1
60
370 373 475
300 333 47.3
331
40
200 246 245
200 104 220
100 20
123 127 131 141
116
0 0
2011 2012 2013 2014 2015
CBC/SRCEnglishlanguagestations CBC/SRCFrenchlanguagestations
CBC/SRCTotal Englishlanguagestationspercentoftotal
Source:CRTCdatacollection
Table4.2.2CBCconventionaltelevisionrevenues($millions)
Growth(%) CAGR(%)
Type 2011 2012 2013 2014 2015
201415 20112015
Englishlanguagestationsadvertising 246 245 200 333 104 68.9 19.4
Frenchlanguagestationsadvertising 123 127 131 141 116 17.7 1.5
Advertisingtotal 370 373 331 475 220 53.6 12.2
Otherrevenues 130 135 133 127 129 1.6 0.2
Parliamentaryappropriation 839 861 783 726 758 4.4 2.5
Totalrevenues 1,339 1,369 1,247 1,328 1,107 16.6 4.6
Source:CRTCdatacollection
OtherrevenuesincludesyndicationrevenuesandfundingfromtheLPIFfrom2011to2014.
133
Section4.2CMR2016
Table4.2.3Advertisingandotherrevenues:privateconventionaltelevisionstations,bylanguageofbroadcast
RevenuesforEnglishlanguageprivateconventionaltelevisionstationsincluderevenuesforethnicstations
sinceasignificantportionofthesestationsrevenueswasderivedfromEnglishlanguageprogramming.
OtherrevenuesincludefundingfromtheLPIFfor20112014.
134
Section4.2CMR2016
Table4.2.4Revenuesofdiscretionaryservices,bylanguageofbroadcast
RevenuesoftheFrenchlanguagespecialtyservicesroseby11.3%from2014to2015asaresultofa$50
milliongaininsubscriberrevenues.Inparticular,thesportsrelatedspecialtyservicesTVASportssawitstotal
revenuesincreasedfivefold,withitssubscriberrevenuesmultipliedby4in2015relativeto2014,asthe
serviceairedNHLhockeygames.
Ethnicandthirdlanguagespecialtyservicesrevenuesdecreasedby2.6%incomparisonto2014and
generated1.8%($78.5million)oftotalrevenuesin2015.
Ondemandservices,namelypayperviewandvideoondemand,continuedtheirdownwardtrendin2015.
Thesetwocategoriesofservicescombinedreportedrevenuesof$314millionin2015,down$38million(
10.9%)from2014,and$40million(11.2%)from2013.
135
Section4.2CMR2016
Figure4.2.4Rankingbyrevenueofindividualdiscretionaryservices,indescendingorder,2015
Rankingbyrevenueofindividualdiscretionaryservices,indescending
450 order,2015
400
350
Revenues($millions)
300
250
200
150
100
50
0
1
10
100
1000
Top10highestgrossing
services Remaining servicesbytotalrevenues
Source:CRTCdatacollection
Thisgraphshowsthetotalrevenuesreportedbyindividualdiscretionaryservices,indescendingorder,in
2015.Eachofthetopfiveservicesreportedatleast$100millioninrevenues,whileeachofthenextfive
servicesreportedbetween$80millionto$90millioninrevenues.These10highestgrossingservices
accountedfor37.7%oftotalrevenuesgeneratedin2015.Fiveofthemweresportsrelatedservices;two
ownedbyBCE,twoownedbyRogersandonebyGroupeTVA.SportsnetOneandTVASportswereamongthe
top10grossingservicesforthefirsttimein2015astheirrevenuesrecordedstronggrowthwiththe
broadcastingofNHLcontent.
Eachofthenext74rankedservicesreportedtotalrevenuesinexcessof$10million;eachofthenext89
servicesreportedtotalrevenuesinexcessof$1million;andeachoftheremainingrankedservicesreported
totalrevenuesoflessthan$1million.
136
Section4.2CMR2016
Figure4.2.5RevenuesofEnglishlanguageprivateconventionaltelevisionanddiscretionaryservices
RevenuesofEnglishlanguageprivateconventionaltelevisionand
discretionaryservices
Private conventional Specialtyservices Pay,PPVandVOD
3,000 100
90
93 92 93 92 94
2,500
80
969 1,010
851 70
795
Revenues($millions)
2,000 666
Percentage(%)
60
376 377
1,500 295 333 374 50
40
44 42
1,000 41 36 37
1,788 1,672 30
1,583 1,475
1,447 1,3421,348 1,377 1,410 1,368 20
500
771 750 716 704 665 10
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
CategoryA CategoryB CategoryC Advertising(PercentofTotal)
Source:CRTCdatacollection
Ethnicconventionaltelevisionstationshavebeenincludedunderprivateconventionalsinceasignificant
portionoftheirrevenuesisderivedfromEnglishlanguageprogramming.Englishlanguagediscretionary
servicesincludebilingualservices.
Thelineinthechartshowsadvertisingrevenuesasapercentageoftotalrevenuesforprivateconventional
televisionandspecialtyservices(allcategoriesincluded).
137
Section4.2CMR2016
Figure4.2.6RevenuesofFrenchlanguageprivateconventionaltelevisionanddiscretionaryservices
RevenuesofFrenchlanguageprivateconventionaltelevisionand
discretionaryservices
Private conventional Specialtyservices Pay,PPVandVOD
700 100
90
600
80
80 81 82
Revenues($millions)
79 78 328
500 70
270 283
Percentage(%)
266
60
400 213
50
37 52
300 43
20 29 40
33
29
37 30
200 34 33
357 367 361 329
311
275 277 297 288 302 20
100
10
79 84 83 84 73
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
CategoryA CategoryB CategoryC Advertising(percentoftotal)
Source:CRTCdatacollection
Thelineinthechartshowsadvertisingrevenuesasapercentageoftotalrevenuesforprivateconventional
televisionandspecialtyservices(allcategoriesincluded).
138
Section4.2CMR2016
Figure4.2.7Revenuesofethnicandthirdlanguagediscretionaryservices
Revenuesofethnicandthirdlanguagediscretionaryservices
Specialtyservices Payservices
100 100
87 88 87
90 81 79
Revenues($millions)
80 80
70
Percentage(%)
60 60
50 43 41
36 36 33
40 40
25 25
30
20 12 12 20
10 5 4
0.1 0.1
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Totalrevenues Advertising(percentoftotal)
Source:CRTCdatacollection
In2015,noethnicorthirdlanguagepayserviceswereinoperation.From2012to2014,theremainingethnic
andthirdlanguagepayserviceseitherceasedoperationsorchangedlicencetypetospecialty.
Thelineinthechartshowsadvertisingrevenuesasapercentageoftotalrevenuesforspecialtyservices(all
categoriesincluded)andpayservices.
139
Section4.2CMR2016
Figure4.2.8CollectiverevenuesoftopthreeEnglishlanguageprivateconventionaltelevisionownershipgroups
CollectiverevenuesoftopthreeEnglishlanguageprivateconventional
televisionownershipgroups
92 92 92 92 93
100
Revenues($millions)
2,000 1,788
1,672 1,583
1,475 80
1,447
Percentage(%)
1,500
60
1,000 829 803 768 728 716 40
522 448 419 405 406
500 298 289 269 224 219 20
0 0
2011 2012 2013 2014 2015
Source:CRTCdatacollection
ThisgraphshowstherevenuesofeachofthethreelargestEnglishlanguageprivateconventionaltelevision
ownershipgroupsineachofthe2011to2015broadcastyears.Italsoshowsthetotalrevenuesofthesethree
groupsasapercentageoftherevenuesofallgroupsforthesameyears.Ethnicprivateconventional
televisionstationshavebeenincludedsinceasignificantportionoftheirrevenuesisderivedfromEnglish
languageprogramming.
Eachgroupstotalannualrevenuesarebasedontotalrevenuesofstationscontrolledbythebroadcaster.
Controlwasdeterminedwherethebroadcasterhadagreaterthan50%directandindirectvotinginterestas
of31Augustofthatyear.TotalrevenuesincludefundingfromLPIFfor20112014.
Figure4.2.9CollectiverevenuesoftoptwoownersofFrenchlanguageprivateconventionalstations
CollectiverevenuesoftoptwoownersofFrenchlanguageprivate
conventionalstations
500 91 90 90 90 91 100
Revenues($millions)
400 80
Percentage(%)
Source:CRTCdatacollection
140
Section4.2CMR2016
ii Financialperformance
Privateconventionaltelevisionstationswereunprofitablein2015.Profitability,asmeasuredbytheProfit
BeforeInterestandTaxes(PBIT)marginfellto8.0%in2015,downfrom7.7%in2014.2015marketthe
thirdconsecutiveyearoffinanciallossesfortheprivateconventionaltelevisionstations.
DiscretionaryservicereportedanaveragePBITmarginof20.8%in2015,down3percentagepointsfrom
2014.Specialtyservices,notablycategoryAserviceswitha32.4%PBITmargin,werethemostprofitableofall
typesofservicesin2015.Whilepayservicesremainedprofitablein2015despitelowerrevenues,ondemand
services(PPVandVODservices)reportedasignificantdropinprofitabilityin2015astheircombinedPBIT
marginfell14.8percentagepointsbetween2014and2015to21.4%.Asaresult,Pay,PPVandVODservice
togetherrecordedanoverallPBITmarginof0.5%,downfrom11%thepreviousyear,andthefirsttimethis
categorywasnotprofitable.
Figure4.2.10AggregatePBITmarginsforprivateconventionaltelevisionanddiscretionaryservices
AggregatePBITmargins
50%
Conventional Pay,PPVand CategoryA CategoryB CategoryC
television VODservices specialtyservices specialtyservices specialtyservices
40% 35%
33% 35% 32%32%
30% 25%25%27%
24% 24% 24%
18% 20%
20% 16% 15%
12% 13%
11% 11%
10% 7%
1% 0%
0%
0.5%
10%
8%8%
20%
Source:CRTCdatacollection
141
Section4.2CMR2016
Figure4.2.11AggregatePBITmarginsforEnglishlanguageprivateconventionaltelevisionanddiscretionary
services
AggregatePBITmarginsforEnglishlanguageservices
Privateconventional Discretionaryservices
30 180
155 157 157 157
25 150 160
Numberofreportingunits
PBITmargins(%)
20 140
15 120
10 100
73 72 73 75 73
5 80
6 25 24 27 25 23
0 1 60
5 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 40
2 9 10
10 20
15 0
PBITmargins(%) Numberofreportingunits
Source:CRTCdatacollection
142
Section4.2CMR2016
Figure4.2.12AggregatePBITmarginsforFrenchlanguageprivateconventionaltelevisionanddiscretionary
services
AggregatePBITmarginsforFrenchlanguageservices
Privateconventional Discretionaryservices
30 32 35
29 31 31 31
Numberofreportingunits
25 30
25
24 25
PBITmargins(%)
20 20 20 20 20 20
19 20 20
15
15
10
11 11 10
9 9
5 5
0 0
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
PBITmargins(%) Numberofreportingunits
Source:CRTCdatacollection
Figure4.2.13AggregatePBITmarginsforethnicandthirdlanguagediscretionaryservices
AggregatePBITmarginsforethnicandthirdlanguagediscretionary
services
25 50
24 47
24 45
Numberofreportingunits
43
20 41 40
38 21 38
35
PBITMargin(%)
15 17 17 30
25
10 20
15
5 10
5
0 0
2011 2012 2013 2014 2015
PBITmargins(%) Numberofunitsreporting
Source:CRTCdatacollection
143
Section4.2CMR2016
iii Availabilityoftelevisionandvideoservices
Canadiansenjoymultiplesourcesandmeansofaccessingcontent,fromconventionalovertheairlinear
broadcastingtodigitalmediaprovidedovertheInternet.Thefollowingchartshowsthevariouscategories
andtypesofprogrammingsourcesandplatforms.
Chart4.2.1Programmingsourcesandplatforms
Programmingsourcesandplatforms
144
Section4.2CMR2016
ForfiguresandtableswiththeMediaTechnologyMonitor(MTM)asasource,notethat:
InternetvideoisdefinedaswatchingorstreamingvideoavailableovertheInternet(e.g.video
clipsonYouTube,televisionprograms,sports,movies,etc.);and
InternetTVisdefinedaswatchingorstreamingtelevisionprogramsorclipsavailableoverthe
Internet.
Figure4.2.14PercentageofCanadianswhoviewedtelevisionandInternetvideoservicesandprogramminginthe
pastmonth,bylanguageandplatform
PercentageofCanadianswhoviewedtelevisionandInternetvideo
servicesandprogramminginthepastmonth,bylanguageand
platform
23
Sportshighlightoreventonline 37
34
34
Onlinenewsornewsprogram 47
44
25
Fulllengthmovieonline 43
39
29
Entire30or60minuteTVshowonline 39
37
49
InternetTV 57
55
64
WatchanytypeofYoutubevideo 70
69
75
Anytypeofinternetvideo 82
81
23
PayTV 22
22
98
TV 95
96
0 20 40 60 80 100
PercentageofCanadians
Source:MTM,2015(Respondents:Canadians18+)
145
Section4.2CMR2016
Table4.2.5TypeandnumberoftelevisionservicesauthorizedtobroadcastinCanada,bylanguageofbroadcast
ThistableshowsthetypesandnumberoftelevisionservicesthatareauthorizedtobroadcastinCanada.
Typesincludeconventionaltelevisionservices;variousdiscretionaryservices(i.e.,specialty,pay,PPV,and
VOD);communityservicesandtheHouseofCommons(CPAC)service;andnonCanadianprogramming
servicesauthorizedfordistribution.
Radiocommunicationdistributionundertakings(RDUs),rebroadcasters,exempttelevisionservices,specialty
servicesforwhichbroadcastauthorityhasexpired,andsomenetworklicencesarenotincluded.
Privatecommercialdoesnotincludeprivatecommercialreligiousstations.SpecialtyCategoryBservices
includeonlyservicesthathavebeenlaunchedandhavefiledannualreturnswiththeCommission.Pay
televisionservicesincludeonlypayservicesthatlaunchedasof31December2012.VODservicesinclude
servicesthathavebeenapprovedbutarenotnecessarilyinoperation.Thenumberofservicespresentedin
thetablehasdecreasedfollowingtheissuanceofExemptionorderforsmallvideoondemandundertakings,
BroadcastingOrderCRTC201160,31January2011.CarriageofauthorizednonCanadianservicesisatthe
discretionoftheBDU.Appendix2toListofnonCanadianprogrammingservicesauthorizedfordistribution
Annualcompilationofamendments,BroadcastingRegulatoryPolicyCRTC201527,30January2015,setsout
acompletelistofnonCanadianprogrammingservicesapprovedasof31December2014.Englishlanguage
servicesincludethoseconsideredbilingual(English/FrenchandEnglish/Native).OtherCanadianservices
excludecommunitychannelsreportedbyBDUlicensees.
146
Section4.2CMR2016
Table4.2.6NumberofCanadianpublic/community/educationalandprivateconventionaltelevisionservices
authorizedtobroadcast,byprovinceandlanguageofbroadcast,2015
Nationally,Canadianshaveaccessto97privateconventionaltelevisionservicesand48
public/community/educationaltelevisionservices.Qubecleadsallprovincesinregardtopublic,community
andeducationstations(11).Ontarioleadsallprovincesinregardtoprivateconventionaltelevisionstations
(26).
147
Section4.2CMR2016
iv Audiencemeasurement
Audiencemeasurementdataisimportantnotonlytoindustrystakeholders,whousethedatatohelpsellair
timetoadvertisers,butalsototheCRTC,whichusesthedatatoassesstheeffectivenessofitspoliciesby
understandingthereachofprogrammingacrossthecountryandacrossvariousdemographics.
Unlessotherwisespecified,audiencemeasurementdatasourcedfromNumeriswascollectedbyportable
peoplemeter(PPM)devices;
TheNumerisdatapresentedbylinguisticmarketdividesCanadaintotwosections:(1)allofCanada,
excludingFrancophonerespondentsinQuebec;and(2)exclusivelyFrancophonesrespondentsinQuebec;
ThetelevisionseasonsusedbyNumeriswerethefollowing:
30August2010to28August2011,includesallpersons2+,MondaytoSunday,2a.m.to2a.m.;
29August2011to26August2012,includesallpersons2+,MondaytoSunday,2a.m.to2a.m.;
27August2012to25August2013,includesallpersons2+,MondaytoSunday,2a.m.to2a.m.;
26August2013to31August2014,includesallpersons2+,MondaytoSunday,2a.m.to2a.m.;and
1September2014to30August2015,includesallpersons2+,MondaytoSunday,2a.m.to2a.m.
ForfiguresandtableswiththeMediaTechnologyMonitor(MTM)asasource,notethat:
InternetvideoisdefinedaswatchingorstreamingvideoavailableovertheInternet(e.g.video
clipsonYouTube,televisionprograms,sports,movies,etc.);and
InternetTVisdefinedaswatchingorstreamingtelevisionprogramsorclipsavailableoverthe
Internet.
Fortableswithdatabyownershipgroups:
Whereownershiptransactionswereinprogressatthetimeofdatacollection,ownershipwasbased
onthedateoftheapprovaldecision,nottheofficialclosingdateofthetransaction.
Viewingfortheentiretelevisionseasonwasattributedtotheownershipgroupholdingdirectand
indirectvotinginterestsgreaterthan50%on31Decemberofeachyear.
148
Section4.2CMR2016
Figure4.2.15AveragenumberofhoursCanadianswatchedtraditionaltelevision(20102011through20142015
broadcastyears)andInternettelevision(2009to2015)
Traditionaltelevision Internettelevision
29.8 29.5 29.3 29.0 30
28.6
Averageweeklyviewinghours
30.0
Averageweeklyviewinghours
25
25.0
20.0 20
15.0 15
10.0 10
5.1 5.8
5.0 3.9
5 2.0 2.4 2.8 1.9 2.7
0.5 0.5 0.7 1.3
0.0 0
2009 2010 2011 2012 2013 2015
InternetTVusagetypicalweeklyuser
Source:Numeris,MTM(respondents:Canadians18+)
ThesegraphsshowthenationalaveragenumberofhoursCanadians18yearsofageandolderwatched
traditionaltelevision(excludingdigitalmedia)andInternettelevisioneachweek.Thegraphdisplaying
InternettelevisiondatashowstheviewinghabitsofrespondentswhowatchInternettelevisioneveryweek,as
wellasthoseofthenationalaverage.2014dataforInternetTVisunavailable.
Whereasweeklyviewingoftraditionaltelevisionhasdecreasedbyapproximately1houroverthelast5years,
weeklyInternettelevisionviewinginthetotalpopulationincreasedbyapproximately2hoursandby
approximately4hoursfortypicalInternetTVweeklyusersoverthesameperiod.
Table4.2.7AveragenumberofhoursCanadianswatchedtraditionaltelevisioneachweek,byagegroup
Averagenumberofhourswatchingtraditionaltelevision Growth(%)
Agegroup (Weekly) 201314to
201011 201112 201213 201314 201415 201415
Allpersons2+ 28.5 28.2 27.9 27.4 27.2 0.7
Children211 22.7 22.2 21.6 20.6 21.4 3.9
Teens1217 22.4 22.7 21.0 19.9 18.8 5.5
1834 23.0 22.8 21.9 20.6 19.7 4.4
3549 25.3 24.8 24.7 24.0 23.6 1.7
5064 33.6 33.1 33.2 33.4 33.0 1.2
65+ 42.2 41.9 41.5 41.8 42.0 0.5
Source:Numeris
Thistableshowsthenationalaverageofweeklyviewinghoursbyagegroup.Itdoesnotincludedigital
media.Forthethirdconsecutiveyear,averageweeklyviewingdeclinedacrossallagegroupsexceptfor
children211andthe65+agegroupwhichsawlittlemovementoverthesametimeframe.
149
Section4.2CMR2016
Table4.2.8ViewingshareofCanadianandnonCanadiantelevisionservices,bylanguageandtypeofservice,forall
ofCanada,excludingtheQuebecfrancophonemarket
Viewingshare(%) Growth(%)
Categoryofservices Subcategory 2010 2011 2012 2013 2014 201314to
2011 2012 2013 2014 2015 201415
CBC 6.4 5.5 5.1 6.9 5.2 24.6
Privateconventional 25.0 25.6 24.9 25.3 26.1 3.2
CanadianEnglish Discretionaryandon
49.3 49.6 51.1 50.3 52.0 3.4
language demandservices
Otherservices 2.3 2.2 2.3 2.0 2.3 15.0
Allservices 83.0 82.8 83.4 84.5 85.6 1.3
SRC 0.2 0.2 0.1 0.1 0.1 0
Privateconventional 0.1 0.1 0.1 0.1 0.1 0
CanadianFrench TlQubec 0 0 0 0 0 n/a
language Discretionaryandon
0.4 0.4 0.4 0.4 0.3 25.0
demandservices
Allservices 0.8 0.8 0.7 0.6 0.5 16.7
Privateconventional 1.3 1.1 0.9 0.6 0.4 33.3
Discretionaryandon
Canadianother 1.2 1.0 0.9 1.0 0.9 10.0
demandservices
languages
APTN 0.2 0.1 0.2 0.2 0.2 0
Allservices 2.6 2.3 2.0 1.8 1.5 16.7
Communityservices 0.3 0.3 0.3 0.3 0.3 0
Canadianalllanguages VOD/PPV 0 0 0 0 0 n/a
Allservices 86.7 86.1 86.4 87.2 87.9 0.8
U.S.conventional 5.3 5.4 5.0 4.5 4.8 6.7
U.S.discretionary 8.0 8.5 8.8 8.0 7.2 10.0
NonCanadian
International 0 0 0 0 0.1 n/a
Allservices 13.3 13.9 13.7 12.5 12.1 3.2
Allservices Totalhours(millions) 713.2 720.0 712.0 710.7 704.7 0.8
Source:Numeris
150
Section4.2CMR2016
Table4.2.9ViewingshareofCanadianandnonCanadiantelevisionservices,bylanguageandtypeofservice,inthe
Quebecfrancophonemarket
151
Section4.2CMR2016
Table4.2.10Averageweeklyviewinghours(millions)forCanadianprogramsbroadcastbyCanadiantelevision
services,bylanguagemarket,programorigin,andprogramcategory
Englishlanguageandethnic
Frenchlanguageservices,
services,allofCanada(excluding
Quebecfrancophonemarket
ProgrammingCategory ViewingMetric Quebecfrancophonemarket)
2011 2012 2013 2014 2011 2012 2013 2014
2012 2013 2014 2015 2012 2013 2014 2015
Viewinghours(M) 76.7 84.7 84.8 82.2 29.8 30.7 26.4 27.1
News(category1) %Canadian 100 100 100 99.9 98.8 98.8 98.7 98.1
%oftotal 13.3 14.6 14.2 13.6 15 15 13.2 13.4
Viewinghours(M) 22.5 21.6 11.2 28.6 11.4 10.9 10.4 11.3
Longformdocumentary
%Canadian 43.8 46.9 48.2 47.6 44.6 42.9 47 48.7
(category2(b))
%oftotal 3.9 3.7 3.9 4.7 5.7 5.4 5.2 5.6
Otherinformational Viewinghours(M) 52.7 52.2 50.2 53.8 32.6 32.7 28.7 29
(categories2through5, %Canadian 55.6 56.9 59.1 56.6 91.1 91.1 91.3 89.5
excluding2(b)) %oftotal 9.1 9 8.4 8.9 16.4 16 14.4 14.3
Viewinghours(M) 84.5 70.9 95.5 93.8 13.4 10.7 17.7 18.6
Sports(category6) %Canadian 72 65.9 72.9 67.3 82.1 67.8 75 70.5
%oftotal 14.6 12.2 16 15.6 6.8 5.3 8.9 7.7
Viewinghours(M) 236.5 237.4 227.5 230.8 75.3 79.8 76 78.2
Dramaandcomedy
%Canadian 20.1 20 19.4 19.2 29.3 29.1 28.8 29.2
(category7)
%oftotal 40.9 40.9 38.1 38.3 38 39.1 38.1 38.7
Music,dance,and Viewinghours(M) 9.7 10.5 9 7.3 3.5 3.8 3.1 3.1
variety(categories8and %Canadian 27.4 23.8 34.6 40.9 80.8 81.5 85.4 83.5
9) %oftotal 1.7 1.8 1.5 1.2 1.8 1.8 1.6 1.5
Viewinghours(M) 4.9 8.1 9.1 8.5 8.9 9.1 9 7.2
Gameshow(category
%Canadian 28.8 26.7 23.6 22.5 92.5 94.1 95.4 89.3
10)
%oftotal 0.8 1.4 1.5 1.4 4.5 4.5 4.5 3.5
Generalentertainment/ Viewinghours(M) 91 94.6 97.6 97.4 23 25.9 28.1 30.4
Humaninterest/Reality %Canadian 27.7 29.7 31.7 32.1 71.9 68.9 68.2 65.4
(category11) %oftotal 15.7 16.3 16.3 16.2 11.6 12.7 14.1 15
Viewinghours(M) 0 0.1 4.1 4.1 0.4 0.4 18.6 0.4
Other(categories12
%Canadian 98 96.4 61.5 81.1 98.2 91.6 67.8 98.3
through15)
%oftotal 0 0 0 0 0.2 0.2 0 0.2
Viewinghours(M) 578.6 580.1 596.8 602.5 198.2 204.1 199.5 202.3
AllCategories
%Canadian 43.8 43.4 46.1 44.8 63.2 61.4 61.5 59.9
Source:Numeris
152
Section4.2CMR2016
Table4.2.11AverageweeklyviewinghoursforCanadianprogramsbroadcastbyprivateconventionaltelevision
services,bylanguagemarket,programorigin,andprogramcategory
Englishlanguageandethnic
services,
Frenchlanguageservices,
allofCanada
Quebecfrancophonemarket
ProgrammingCategory ViewingMetric (excludingQuebec
francophonemarket)
2011 2012 2013 2014 2011 2012 2013 2014
2012 2013 2014 2015 2012 2013 2014 2015
Viewinghours(M) 35.4 36.7 37.3 34.1 9.4 10.3 9.2 9.2
News(category1) %Canadian 100 100 100 100 100 100 100 100
%oftotal 20.2 21.6 22.0 19.9 14.1 14.8 13.6 13.6
Longform Viewinghours(M) 1.0 1.5 1.8 1.8 0.3 0.3 0.2 0.4
documentary %Canadian 91.9 95.2 89.2 96.6 76.4 90.5 79.9 80.2
(category2(b)) %oftotal 0.6 0.9 1.1 1.0 0.4 0.4 0.4 0.6
Otherinformational Viewinghours(M) 11.0 10.4 10.5 11.5 15.1 14.5 12.3 12.3
(categories2through %Canadian 58.3 62.2 65.8 67.2 99.6 100 99.8 99.3
5,excluding2(b)) %oftotal 6.3 6.1 6.2 6.7 22.5 20.8 18.3 18.2
Viewinghours(M) 11.6 4.6 3.8 6.8 1.3 0 0.7 0.1
Sports(category6) %Canadian 66.0 6.5 7.4 32.8 96.9 85.9 60.9 71.8
%oftotal 6.6 2.7 2.3 4.0 2.0 0.0 0.1 0.1
Viewinghours(M) 67.1 64.9 65.3 66.4 23.7 26.9 28.4 29.4
Dramaandcomedy
%Canadian 10.5 10.3 10.0 7.7 23.9 22.7 22.5 22.2
(category7)
%oftotal 38.3 38.1 38.6 38.8 35.3 38.7 42.2 43.5
Music,dance,and Viewinghours(M) 6.3 7.3 5.4 3.6 1.0 0.9 0.3 0.2
variety(categories8 %Canadian 3.4 2.0 3.5 5.4 67.5 59.7 71.1 85.4
and9) %oftotal 3.6 4.3 3.2 2.1 1.5 1.3 0.4 0.3
Viewinghours(M) 1.8 5.0 6.0 5.5 6.2 6.6 6.9 5.3
Gameshow(category
%Canadian 0 3.7 2.9 3.3 97.6 99.5 99.5 94.4
10)
%oftotal 1.0 2.9 3.5 3.2 9.3 9.6 10.2 7.9
General Viewinghours(M) 40.9 40.0 39.1 41.5 9.7 9.7 9.9 10.4
entertainment/ %Canadian 23.7 22.9 29.0 37.7 80.2 81.5 85.9 85.5
Humaninterest/
%oftotal 23.4 23.5 23.1 24.2 14.5 14.0 14.8 15.4
Reality(category11)
Viewinghours(M) 0 0 0 0.3 0.4 0.3 0 0.4
Other(categories12
%Canadian 0 0 0 95.3 100 100 0 100
through15)
%oftotal 0 0 0 0 0.6 0.5 0 0.5
Viewinghours(M) 175.0 170.1 169.2 171.1 67.1 69.4 67.2 67.6
AllCategories
%Canadian 38.5 35.9 38.0 39.1 69.3 66.9 64.9 63.2
Source: Numeris
153
Section4.2CMR2016
Table4.2.12AverageweeklyviewinghoursforCanadianprogramsbroadcastbyCBCconventionalservices,by
languagemarket,programorigin,andprogramcategory
Englishlanguageandethnic
services, Frenchlanguageservices,
allofCanada Quebecfrancophone
ProgrammingCategory ViewingMetric (excludingQuebec market
francophonemarket)
2011 2012 2013 2014 2011 2012 2013 2014
2012 2013 2014 2015 2012 2013 2014 2015
Viewinghours(M) 6.6 7.1 7.2 7.3 3.8 4.4 4.1 3.9
News(category1) %Canadian 100 100 100 100 100 100 100 100
%oftotal 17.2 20.4 14.9 20.9 15.4 15.9 13.9 14.0
Viewinghours(M) 1.5 1.6 1.3 1.6 0.3 0.3 0.3 0.4
Longformdocumentary
%Canadian 96.1 96.6 98.4 89.8 98.8 93.0 98.7 97.7
(category2(b))
%oftotal 3.8 4.7 2.8 4.2 1.2 1.1 1.0 1.4
Otherinformational Viewinghours(M) 2.2 2.9 2.1 2.3 4.0 3.6 2.8 3.0
(categories2through5, %Canadian 100 99.9 100 100 100 99.9 99.9 100
excluding2(b)) %oftotal 5.6 8.3 4.3 6.5 16.0 12.9 9.6 11.0
Viewinghours(M) 11.5 9.9 25.4 10.8 0.2 0.3 2.9 0.4
Sports(category6) %Canadian 99.9 100 100 100 99.6 100 99.9 100
%oftotal 29.6 28.3 52.6 30.8 1.0 1.0 9.7 1.3
Viewinghours(M) 11.5 9.4 8.6 10.9 7.4 9.0 8.4 9.6
Dramaandcomedy
%Canadian 42.6 54.1 56.0 63.4 73.1 70.0 70.0 66.0
(category7)
%oftotal 29.6 26.9 17.8 31.1 29.7 32.4 28.6 34.9
Music,dance,and Viewinghours(M) 0.2 0.1 0.1 0.1 1.1 1.4 1.5 1.5
variety(categories8and %Canadian 36.2 100 100 51.1 99.4 100 100 100
9) %oftotal 0.5 0.2 0.2 0.4 4.4 5.1 5.1 5.4
Viewinghours(M) 2.5 0.2 0 0.2 1.8 1.7 1.5 1.2
Gameshow(category
%Canadian 0 0 0 100 100 100 100 100
10)
%oftotal 6.6 0.5 0 0.4 7.3 6.2 5.1 4.2
Generalentertainment/ Viewinghours(M) 2.8 3.7 3.6 2.0 6.2 7.0 7.9 7.7
Humaninterest/Reality %Canadian 99.6 99.5 99.6 98.9 100 100 100 100
(category11) %oftotal 7.2 10.6 7.4 5.6 25.0 25.3 26.9 27.8
Other Viewinghours(M) 0 0 2.2 0 0 0.0 0.3 0.0
(categories12through %Canadian 0 0 100 100 100 100 100 100
15) %oftotal 0 0 0 0 0 0 0 0
Viewinghours(M) 38.8 35.0 48.3 35.0 24.8 27.6 29.5 27.6
AllCategories
%Canadian 75.9 86.9 92.1 87.9 92.0 90.2 91.4 88.1
Source: Numeris
154
Section4.2CMR2016
Table4.2.13AverageweeklyviewinghoursforCanadianprogramsbroadcastbydiscretionaryservices,by
languagemarket,programorigin,andprogramcategory
Englishlanguageandethnic
services,
Frenchlanguageservices,
allofCanada
Programming Quebecfrancophonemarket
ViewingMetric (excludingQuebec
Category
francophonemarket)
2011 2012 2013 2014 2011 2012 2013 2014
2012 2013 2014 2015 2012 2013 2014 2015
Viewinghours(M) 35.1 41.2 40.3 40.8 16.5 16.0 13.1 13.1
News(category1) %Canadian 100 100 99.9 99.8 97.8 97.7 97.5 96.3
%oftotal 9.8 11.2 10.6 10.3 16.5 15.9 12.8 14.0
Longform Viewinghours(M) 17.6 16.0 20.0 25.4 10.3 9.8 9.9 9.8
documentary %Canadian 39.0 41.0 41.1 41.8 43.1 41.2 44.6 45.6
(category2(b)) %oftotal 4.9 4.3 5.3 6.4 10.3 9.7 9.6 10.5
Otherinformational Viewinghours(M) 37.1 36.6 37.6 40.0 12.4 13.5 13.6 12.8
(categories2through %Canadian 51.4 51.2 55.0 51.0 78.5 79.4 81.7 78.5
5,excluding2(b)) %oftotal 10.3 9.9 9.9 10.1 12.4 13.4 13.3 13.7
Viewinghours(M) 61.5 56.5 66.3 76.2 11.9 10.4 14.8 14.2
Sports(category6) %Canadian 67.9 64.7 66.3 65.7 80.1 66.9 70.2 69.8
%oftotal 17.1 15.3 17.5 19.2 11.8 10.4 14.4 15.2
154. 159. 153.
Viewinghours(M) 153.6 40.5 40.2 39.2 36.6
Dramaandcomedy 9 1 6
(category7) %Canadian 22.1 21.7 21.3 21.0 22.9 23.5 24.5 25.4
%oftotal 43.0 43.2 40.5 38.7 40.4 40.0 38.1 39.2
Music,dance,and Viewinghours(M) 3.2 3.1 3.5 3,6 1.1 1.3 1.3 1.3
variety(categories8 %Canadian 74.1 73.6 81.3 75.7 69.6 72.8 71.8 65.2
and9) %oftotal 0.9 0.8 0.9 0.9 1.1 1.3 1.3 1.4
Viewinghours(M) 2.0 3.2 3.1 2.9 0.8 0.6 0.6 0.7
Gameshow(category
%Canadian 69.9 62.4 63.0 55.2 32.1 15.9 35.8 32.8
10)
%oftotal 0.6 0.9 0.8 0.7 0.8 0.6 0.6 0.7
General Viewinghours(M) 48.7 53.1 54.8 54.0 6.8 8.7 10.2 11,5
entertainment/ %Canadian 26.1 28.7 29.1 25.3 32.9 28.0 26.4 27.1
Humaninterest/
%oftotal 13.5 14.4 14.5 13.6 6.7 8.7 9.9 12.3
Reality(category11)
Other Viewinghours(M) 0 0 0.2 0 0 0 0.2 0
(categories12 %Canadian 0 0 16.7 4.8 56.6 33.3 62.0 77.8
through15) %oftotal 0 0 0 0 0 0 0 0
Viewinghours(M) 360.1 368.8 379.3 396.3 100.2 100.5 102.8 107.1
AllCategories
%Canadian 42.6 42.6 43.9 43.4 52.2 50.0 50.8 50.5
Source: Numeris
155
Section4.2CMR2016
Table4.2.14ViewingshareofEnglishandFrenchlanguageCanadianservices,byownershipgroupinallof
Canada,excludingtheQuebecfrancophonemarket
Viewingshare(%)
Owner Language 20122013 20132014 20142015
Conventional Discretionary Total Conventional Discretionary Total Conventional Discretionary Total
All 15.4 22.9 38.3 15.6 19.9 35.5 16.5 20.1 36.6
BCE English 15.4 22.7 38.1 15.6 19.7 35.2 16.5 19.9 36.4
French 0.2 0.2 0.3 0.3 0.2 0.2
All 8.5 15 23.5 8.3 14.3 22.6 8.6 15.2 23.8
Shaw English 8.5 15 23.5 8.3 14.3 22.6 8.6 15.2 23.8
French
All 0.3 12.8 13.1 1.7 11.7 13.3 1.6 11.3 12.9
Corus English 0.3 12.8 13.1 1.7 11.6 13.2 1.6 11.2 12.8
French 0 0 0.1 0.1 0.1 0.1
All 4.6 4.7 9.3 4.5 5.2 9.7 4.4 6 10.4
Rogers English 4.6 4.7 9.3 4.5 5.2 9.7 4.4 6 10.4
French
All 6.0 1.8 7.8 8.1 1.8 9.9 6.1 1.9 8.0
CBC
English 5.9 1.8 7.6 8.0 1.8 9.7 5.9 1.8 7.8
SRC
French 0.1 0.1 0.2 0.1 0.1 0.2 0.1 0 0.2
Source:Numeris
Table4.2.15ViewingshareofEnglishandFrenchlanguageCanadianservices,byownershipgroupintheQuebec
francophonemarket
Viewingshare(%)
Owner Language 20122013 20132014 20142015
Conventional Discretionary Total Conventional Discretionary Total Conventional Discretionary Total
All 24.4 8.6 32.9 23.4 8.7 32.1 23.3 11.2 34.5
Qubecor French 24.4 8.6 32.9 23.4 8.7 32.1 23.3 11.2 34.5
English 0 0 0 0 0 0
All 0.9 21.9 22.8 0.8 21.3 22.1 1 19.8 20.8
BCE French 20.3 20.3 19.8 19.8 18.3 18.3
English 0.9 1.6 2.5 0.8 1.5 2.3 1 1.4 2.4
All 13.4 5.1 18.5 14.4 4.9 19.3 13.1 4.6 17.7
SRCCBC French 13.0 5.0 18.0 13.6 4.8 18.5 12.4 4.5 17.0
English 0.4 0.1 0.5 0.8 0.1 0.8 0.6 0.1 0.7
All 8.6 8.6 8 0.9 9 7.8 0.9 8.7
Remstar French 8.6 8.6 8 0.9 9 7.8 0.9 8.7
English
All 8 8 0 7.8 7.8
Corus English 0 7.7 7.7 7.4 7.4
French 0.3 0.3 0 0.4 0.4
Source:Numeris
InTables4.2.14and4.2.15:
CalculationswerebasedonthetotalaverageviewinghoursforCanadianservices,forallpersons2
yearsofageorolder,MondaytoSunday,2a.m.to2a.m.
TotalsforRogersconventionalservicesincludeOMNIstations.
Asof2014,totalforCorusservicesincludeHistoria,Sries+,Teletoon,TeletoonRetro,Tltoonand
TltoonRtro,andexcludeTelelatino.
156
Section4.2CMR2016
Table4.2.16Totalviewinghours(millions)bymarket
Totalhours(millions)
Market 20122013 20132014 20142015
Conventional Discretionary Total Conventional Discretionary Total Conventional Discretionary Total
Canada(excludingthe
Quebecfrancophone 237.5 368.3 605.8 238.1 362.5 600.7 229.8 369.5 599.3
market)
Quebecfrancophone
market
109.3 103.6 212.8 109.7 106.1 215.7 109.7 111.5 221.2
Source:Numeris
Thistablepresentstotalviewinghourspermarket.TotalviewingwasbasedonviewingforallCanadian
conventionalstations(includingethnicstations)andCanadiandiscretionaryandondemandservices
(specialtyandpayonly;excludesPPVandVODservices).
157
Section4.2CMR2016
v Programmingexpenditures
ThepolicyobjectivesoftheBroadcastingActincludeencouragingthedevelopmentofCanadianexpression
andensuringthateachelementoftheCanadianbroadcastingsystemcontributesinanappropriatemanner
tothecreationandpresentationofCanadianprogramming.Assuch,Canadianbroadcastersarerequiredto
allocateportionsoftheirannualbroadcastingrevenuestoexpendituresonCanadianprogramming.These
expendituresareusedtocreateCanadianprogrammingandtoensurethatadiversityofvoicesandinterests
arerepresentedinournationalbroadcastingsystem.
Televisionserviceproviderscontributed45centsperrevenuedollarinsupportofCanadianprogramming
duringthe20142015broadcastyear.Canadianprogrammingexpenditures(CPE)totalled$3billion,15%of
whichwasspentonprogramofnationalinterest(PNI).
SpendingonnonCanadianprogrammingbyprivateconventionaltelevisionstationsdecreasedby$60.9
million(8.5%)to$656.1millionin2015.
TheCRTChasdefinedprogramsofnationalinterest(PNI)asincludingdramaandcomedy,longform
documentary,andspecificCanadianawardshowsthatcelebrateCanadiancreativetalent.ForFrench
languagebroadcasters,PNIalsoincludemusicvideoandvarietyprograms.
Forthepurposesofthisreport,PNIexpendituresincludeexpendituresinanyofthefollowingprogram
categories:
longformdocumentary(category2b);
dramaandcomedy(category7);
Frenchlanguagemusic,dance,andvarietyprogramming(categories8and9);and
Englishlanguageawardshows(subsetofcategory11).
ThePNIdatapresentedinthissectionincludeallPNIexpendituresreportedbybroadcastingundertakings,
regardlessofconditionsoflicencerequiringsuchexpenditures.
Chart4.2.2illustratestheflowoffundingtothecreationofCanadianprogramming.ApercentageofBDU
subscriberrevenuesisusedtofundCanadiandiscretionary(pay,specialty,PPVandVOD)services,aswellas
localexpression(communitytelevision),theCanadaMediaFund(CMF),theLPIF,andvariousindependent
funds.Commercialtelevisionservices(specialty,pay,andprivateconventionalOTA)andtheCBCrelyon
fundsgeneratedbyadvertising.GovernmentfundingisalsoprovidedtotheCMF,theCBC(viaparliamentary
appropriations),andvariousindependentcontentproviders.
158
Section4.2CMR2016
Chart4.2.2Canadianprogrammingfundingecosystem(20142015broadcastyear)
ThischartprovidesanoverviewofthemajorsourcesoftelevisionprogramfundinginCanada.
159
Section4.2CMR2016
Figure4.2.16CPEontelevision,bytypeofservice,2015($millions)
CPEontelevision,bytypeofservice,2015
($millions)
PPVandVOD, $38,
1%
CBCconventionalTV,
$557,19%
SpecialtyandPay,
$1,599,55% Privatecommerical
conventionalTV, $653,
23%
Otherpublicandnot
forprofitconventional
TV, $66,2%
Source:CRTCdatacollection
ThischartshowstheamountthatbroadcastersspentonCanadianprogramming,bytypeofservice,aswellas
thepercentageoftotalCPEineachcase.Approximatelyhalfofthespendingwenttospecialtyandpay
services.
CPEamountsincludespendingonCanadianprogramsbroadcast;writedownsofCanadianinventory;script
andconceptdevelopment;andlossonequityforCanadianprograms.Theyalsoincludespendingrelatingto
tangiblebenefitspaidaspartofchangeinownershiptransactionsandcommitmentsmadeatthetimeof
licensing.However,theyexcludeCMFtopupsreportedbyprivateconventional,specialty,pay,PPV,and
VODtelevisionservices.CBCconventionaltelevisionexcludeindirectandfacilitycostallocations.
In2015,discretionaryandondemandservices(specialty,pay,PPVandVoD)spent$1,637millioninCPE,an
increaseof$147.1million(9%)over2014.Historically,specialtyserviceshasaccountedforatleasthalfof
CPEspending.
160
Section4.2CMR2016
Figure4.2.17Televisionprogrammingexpenditures($4.2billiontotal),PNIvs.Canadianvs.nonCanadian,2015
Televisionprogrammingexpenditures
($4.2billiontotal)
PNIvs.Canadianvs.nonCanadian,2015
NonCanadian
programming
31%
Canadian
programming
(excludingPNI)
54%
Programsofnational
interest(PNI)
15%
Source:CRTCdatacollection
ThischartshowsthepercentagesofexpendituresthatbroadcastersspentonCanadianprogramming
(excludingPNI),PNI,andnonCanadianprogramming.Approximately70%ofthespendingwenttoCanadian
programming(PNIincluded).ProgrammingofVODandPPVservices,aswellasotherpublicandnotforprofit
conventionaltelevisionservices,isexcluded.
161
Section4.2CMR2016
Figure4.2.18Programmingexpendituresperrevenuedollar
Programmingexpendituresperrevenuedollar
0.70
0.60
0.20 0.20 0.20
0.50
0.30
0.20
0.34 0.34 0.35
0.10
0.00
2013 2014 2015
Canadianprogramming(excludingPNI) Programsofnationalinterest(PNI)
NonCanadianprogramming
Source:CRTCdatacollection
ThisfigureshowsbroadcasterspendingperdollarofrevenueonCanadianprogramming(excludingPNI),PNI,
andnonCanadianprogramming.Forexample,itshowsthatforeverydollarofrevenuethebroadcasters
receivedin2015,$0.35wasspentonCanadianprogramming(excludingPNI),$0.10onPNI,and$0.20on
nonCanadianprogramming.ThischartexcludesVODandPPVservicesaswellasotherpublicandnotfor
profitconventionaltelevision.
162
Section4.2CMR2016
Table4.2.17PNIexpendituresbytypeofserviceandprogramcategory($millions)
PNIexpenditures 2015PNI
($millions) Growth(%) expenditures
Service Programcategory
20142015 aspercentage
2013 2014 2015
oftotal(%)
Longformdocumentary 7.9 6.3 7.3 15.9 1.2
Drama 66.0 65.8 55.3 16.0 8.9
Private
Music,dance,andvariety(French
conventional 21.0 17.5 12.6 28.0 2.0
programmingonly)
television
Awardshows(Englishprogrammingonly) 2.6 2.3 1.1 52.2 0.2
TotalPNI 97.5 91.9 76.3 17.0 12.3
Longformdocumentary 30.9 22.3 38.2 71.3 6.2
Drama 153.5 136.9 157.1 14.8 25.3
CBC
Music,dance,andvariety(French
conventional 15.3 20.4 21.3 4.4 3.4
programmingonly)
television
Awardshows(Englishprogrammingonly) 3.1 3.1 3.6 16.1 0.6
TotalPNI 202.8 182.7 220.2 20.5 35.5
Longformdocumentary 112.3 107.4 113.3 5.5 18.2
Drama 200.5 224.1 194.3 13.3 31.3
Discretionary Music,dance,andvariety(French
12.0 11.3 10.1 10.6 1.6
services programmingonly)
Awardshows(Englishprogrammingonly) 4.9 6.3 6.9 9.5 1.1
TotalPNI 329.7 349.1 324.6 7.0 52.6
Longformdocumentary 151.1 136 158.8 16.8 25.6
Drama 420 424 406.7 4.1 65.5
Music,dance,andvariety(French
Total 49.3 49.3 44 10.8 7.1
programmingonly)
Awardshows(Englishprogrammingonly) 10.6 11.7 11.3 3.4 1.8
TotalPNI 630 623.7 621.1 0.4 100
Source:PublicdisclosureofaggregateannualreturnsforlargeownershipgroupsandCRTCdatacollection
ThistablesummarizesthePNIexpendituresmadebytheCBC,privateconventionaltelevision,and
discretionaryservices.TheCBCsectionnowincludesdiscretionaryservicesoperatedbytheCBC.
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Section4.2CMR2016
Table4.2.18PNIexpendituresbyCBCandlargeprivateownershipgroups,byprogramcategory($millions)
PNIexpenditures 2015PNI
Ownership ($millions) Growth(%) expenditures
Programcategory
group 20142015 aspercentage
2013 2014 2015
oftotal(%)
Longformdocumentary 30.9 22.3 38.2 71.3 6.2
Drama 153.5 136.9 157.1 14.8 25.3
CBC Music,dance,andvariety
15.3 20.4 21.3 4.4 3.4
conventional (Frenchprogrammingonly)
television Awardshows(English
3.1 3.1 3.6 16.1 0.6
programmingonly)
TotalPNI 202.8 182.7 220.2 20.5 35.5
Longformdocumentary 43.2 47.0 54.9 16.8 8.8
Drama 99.1 96.2 77.3 19.6 12.4
Music,dance,andvariety
0 0 0.7 0.0 0.1
BCE (Frenchprogrammingonly)
Awardshows(English
7.3 8.3 7.1 14.5 1.1
programmingonly)
TotalPNI 149.7 151.5 140 7.6 22.5
Longformdocumentary 34.5 27.3 23.4 14.3 3.8
Drama 33.7 25.9 26.3 1.5 4.2
Music,dance,andvariety
0 0 0 0.0 0.0
Shaw (Frenchprogrammingonly)
Awardshows(English
0 0 0 0.0 0.0
programmingonly)
TotalPNI 68.3 53.3 49.7 6.8 8.0
Longformdocumentary 5.0 5.8 6.4 10.3 1.0
Drama 36.8 71.7 91.2 27.2 14.7
Music,dance,andvariety
0 0 0 0.0 0.0
Corus (Frenchprogrammingonly)
Awardshows(English
0 0 0 0.0 0.0
programmingonly)
TotalPNI 41.8 77.5 97.6 25.9 15.7
Longformdocumentary 4.6 2.8 4.1 46.4 0.7
Drama 5.8 7.2 9.5 31.9 1.5
Music,dance,andvariety
0 0 0 0.0 0.0
Rogers (Frenchprogrammingonly)
Awardshows(English
0 0 0 0.0 0.0
programmingonly)
TotalPNI 10.4 10.0 13.6 36.0 2.2
Longformdocumentary 151.1 136 158.8 16.8 25.6
Drama 420 424 406.7 4.1 65.5
Music,dance,andvariety
49.3 49.3 44 10.8 7.1
Total (Frenchprogrammingonly)
Awardshows(English
10.6 11.7 11.3 3.4 1.8
programmingonly)
TotalPNI 630 623.7 621.1 0.4 100
Source:Publicdisclosureofaggregateannualreturnsforlargeownershipgroups
164
Section4.2CMR2016
Table4.2.19CPEforCBCEnglishandFrenchlanguageconventionaltelevision,byprogramcategory($thousands)
Growth(%)
Programcategory 2011 2012 2013 2014 2015 20142015
News(category1) 191,924 196,688 212,876 207,331 190,937 7.9
Longformdocumentary(category2(b)) 39,242 36,042 30,867 22,337 28,471 27.5
Otherinformational(categories2through5,
59,292 67,446 63,744 62,792 50,651 19.3
excludingcategory2(b))
Sports(category6) 157,190 158,698 127,730 258,029 35,940 86.1
Dramaandcomedy(category7) 141,049 158,420 153,529 136,895 158,544 15.8
Music,dance,andvariety(categories8and9) 12,912 26,120 27,635 27,278 29,347 7.6
Gameshow(category10) 11,900 16,217 12,933 9,300 5,449 41.4
Humaninterest/Awardshows/Reality
94,059 73,063 70,337 64,807 56,742 12.4
(category11)
Humaninterest n/a n/a 58,411 49,545 44,785 9.6
Awardshows n/a n/a 7,467 7,725 8,008 3.7
Realitytelevision n/a n/a 4,460 7,537 3,949 47.6
Other(categories12through15) 2,203 941 1,139 1,011 1,102 9.0
Total(categories1through15) 709,769 733,635 700,793 789,782 557,183 29.5
Source:CRTCdatacollection
Canadianprogrammingexpenditures(CPE)includespendingonCanadianprogramsbroadcast;writedowns
ofCanadianinventory;scriptandconceptdevelopment;andlossonequityforCanadianprograms.Theyalso
includespendingrelatingtotangiblebenefitspaidaspartofchangeinownershiptransactionsand
commitmentsmadeatthetimeoflicensing.CBCconventionaltelevisionCPEexcludeindirectandfacilitycost
allocations.ThebreakdownforHumaninterest/AwardShows/Reality(category11)isonlyavailableasof
2013.
165
Section4.2CMR2016
Table4.2.20CPEforprivateconventionaltelevision,byprogramcategory($thousands)
Growth(%)
Programcategory 2011 2012 2013 2014 2015 20142015
News(category1) 316,922 353,646 355,287 361,050 369,570 2.4
Longformdocumentary(category2(b)) n/a 16,600 7,894 6,261 7,288 16.4
Otherinformational(categories2through5,
55,033 32,150 30,923 29,339 30,026 2.3
excludingcategory2(b))
Sports(category6) 848 68,485 6,490 1,123 21,450 1,810.1
Dramaandcomedy(category7) 58,322 59,169 66,164 65,759 55,289 15.9
Music,dance,andvariety(categories8and9) 33,006 30,241 24,476 22,317 17,097 23.4
Gameshow(category10) 22,033 17,546 19,394 19,042 17,258 9.4
Humaninterest/Awardshows/Reality
75,577 83,842 92,345 113,897 134,422 18.0
(category11)
Humaninterest n/a n/a 72,953 84,669 86,737 2.4
Awardshows n/a n/a 4,071 3,695 2,671 27.8
Realitytelevision n/a n/a 15,321 25,533 45,014 76.3
Other(categories12through15) 1,173 905 2,444 516 361 30.0
Total(categories1through15) 562,914 661,759 605,415 619,305 652,762 5.4
Source:CRTCdatacollection
Canadianprogrammingexpenditures(CPE)includespendingonCanadianprogramsbroadcast;writedowns
ofCanadianinventory;scriptandconceptdevelopment;andlossonequityforCanadianprograms.Theyalso
includespendingrelatingtotangiblebenefitspaidaspartofchangeinownershiptransactionsand
commitmentsmadeatthetimeoflicensing.CBCconventionaltelevisionCPEexcludeindirectandfacilitycost
allocations.ThebreakdownforHumaninterest/AwardShows/Reality(category11)isonlyavailableasof
2013.2015privateconventionaltelevisionCPEisequivalentto37.2%ofthissectorsrevenues.
166
Section4.2CMR2016
Figure4.2.19DistributionofCPEforprivateconventionaltelevisionservices,byprogramcategory,2015
DistributionofCPEforprivateconventionaltelevisionservices,by
programcategory,2015
Humaninterest/ Other
AwardShows/ (cat.12to15),0%
Reality
(cat.11),20%
Gameshows
(cat.10),2%
News
Music/Variety
(cat.1),57%
(cat.8&9),3%
Drama&comedy
(cat.7),9%
Sports
(cat.6),3%
Otherinfo(cat.2to5),
5%
Source:CRTCdatacollection
Thisfigureshowsthedistribution,brokendownbyprogramcategory,ofCPEofprivate
conventionaltelevisionservicesin2015.
Morethanhalfoftheexpendituresweremadeonnewsprogramming.Othersignificant
investmentsweremadeingeneralentertainment(includinghumaninterestandawards
shows),anddramaandcomedyprogramming.
167
Section4.2CMR2016
Table4.2.21ExpendituresonnonCanadianprogrammingbyprivateconventionaltelevisionservices,byprogram
category($thousands)
Growth(%)
Programcategory 2011 2012 2013 2014 2015
20142015
News(category1) 90 57 4,631 594 703 18.4
Longformdocumentary(category2(b)) n/a 298 454 603 218 63.8
Otherinformational(categories2through5,
16,522 15,034 9,750 10,975 20,039 82.6
excludingcategory2(b))
Sports(category6) 17,916 17,877 20,269 19,953 28,747 44.1
Dramaandcomedy(category7) 480,114 488,652 483,024 516,267 473,296 8.3
Music,dance,andvariety(categories8and
31,878 47,333 57,128 28,736 10,499 63.5
9)
Gameshow(category10) 11,460 5,278 5,625 8,360 8,287 0.9
Humaninterest/Awardshows/Reality
169,059 151,234 151,044 131,529 114,346 13.1
(category11)
Humaninterest n/a n/a 90,375 72,813 66,417 8.8
Awardshows n/a n/a 14,173 16,152 14,493 10.3
Realitytelevision n/a n/a 46,496 42,564 33,436 21.4
Other(categories12through15) 1,994 51 52 2 2 0
Total(categories1through15) 729,033 725,813 731,978 717,018 656,137 8.5
Source:CRTCdatacollection
For20122015,thenumbersshownforOtherinformational(categories2through5)donotinclude
expendituresoncategory2(b))programming.Inaddition,thebreakdownforHumaninterest/Award
shows/Reality(category11)isonlyavailableasof2013.2015privateconventionaltelevisionnonCanadian
programmingexpendituresareequivalentto37.3%ofthissectorsrevenues.
From2014to2015,thedecreaseinNonCanadianprogrammingwasmostprominentintheDrama
programmingcategory,whichreportedayearoveryeardecreaseof$43M(8.3%).
168
Section4.2CMR2016
Table4.2.22ExpendituresonnonCanadianprogrammingbyprivateandCBCconventionaltelevisionservices,by
programcategoryandlinguisticmarket($thousands)
169
Section4.2CMR2016
Table4.2.23CPEandexpendituresonnonCanadianprogrammingreportedbyspecialtyservices,bylanguageof
broadcastandprogramcategory($thousands)(Part1of2)
ExpendituresonnonCanadian
CPE
Languageof programming
Programcategory
broadcast Growth Growth
2014 2015 2014 2015
(%) (%)
Numberofservicesreporting 127 127 0.0 127 127 0.0
News(category1) 152,516 157,626 3.4 829 768 7.4
Longformdocumentary(category2(b)) 74,625 77,118 3.3 31,725 32,897 3.7
Otherinformational(categories2
102,077 87,927 13.9 5,368 6,045 12.6
through5,excludingcategory2(b))
Sports(category6) 452,314 498,286 10.2 88,377 103,738 17.4
Dramaandcomedy(category7) 134,423 89,447 33.5 129,624 142,783 10.2
Music,dance,andvariety(categories8
15,070 11,285 25.1 1,414 637 55.0
English and9)
Gameshow(category10) 10,705 9,009 15.8 1,154 1,056 8.5
Humaninterest/Awardshows/Reality
109,227 89,435 18.1 68,762 70,603 2.7
(category11)
Humaninterest 45,617 31,189 31.6 43,666 44,417 1.7
Awardshows 6,291 6,592 4.8 174 811 366.1
Realitytelevision 57,319 51,653 9.9 24,921 25,375 1.8
Other(categories12through15) 21,488 46,148 114.8 1,203 10,543 776.4
Total(categories1through15) 1,072,445 1,066,280 0.6 328,457 369,071 12.4
Numberofservicesreporting 30 29 3.3 30 29 3.3
News(category1) 80,750 74,476 7.8 0 0 n/a
Longformdocumentary(category2(b)) 28,391 30,808 8.5 7,238 5,489 24.2
Otherinformational(categories2
44,822 49,547 10.5 2,858 1,718 39.9
through5,excludingcategory2(b))
Sports(category6) 90,508 190,428 110.4 10,631 13,033 22.6
Dramaandcomedy(category7) 25,764 31,726 23.1 18,725 21,601 15.4
Music,dance,andvariety(categories8
11,276 7,613 32.5 897 514 42.7
French and9)
Gameshow(category10) 3,540 4,100 15.8 0 0 0
Humaninterest/Awardshows/Reality
13,767 20,889 51.7 5,728 4,631 19.2
(category11)
Humaninterest 11,227 15,204 35.4 1,176 1,145 2.6
Awardshows 494 0 100.0 10 654 6,440.0
Realitytelevision 2,046 5,685 177.9 4,542 2,832 37.6
Other(categories12through15) 6,287 6,892 9.6 469 1,171 149.7
Total(categories1through15) 305,106 416,478 36.5 46,546 48,157 3.5
Source:CRTCdatacollection
170
Section4.2CMR2016
Table4.2.24CPEandexpendituresonnonCanadianprogrammingreportedbyspecialtyservices,bylanguageof
broadcastandprogramcategory($thousands)(Part2of2)
Expendituresonnon
Language CPE
Canadianprogramming
of Programcategory
Growth Growth
broadcast 2014 2015 2014 2015
(%) (%)
Numberofservicesreporting 40 39 2.5 40 39 2.5
News(category1) 3,920 3,978 1.7 1,525 1,493 2.1
Longformdocumentary(category2(b)) 1,518 2,138 40.8 0 74 n/a
Otherinformational(categories2through5,
2,671 2,792 4.5 554 445 19.7
excludingcategory2(b))
Sports(category6) 1,249 749 40.0 1,241 900 27.5
Dramaandcomedy(category7) 3,256 3,021 7.2 6,089 6,838 12.3
Third Music,dance,andvariety(categories8and9) 6,559 5,244 20.0 1,302 1,046 19.7
language Gameshow(category10) 705 499 29.2 2,602 930 64.3
Humaninterest/Awardshows/Reality
4,505 4,175 7.3 2,057 4,265 107.3
(category11)
Humaninterest 4,241 3,902 8.0 2,057 4,265 107.3
Awardshows 264 272 3.0 0 0 0.0
Realitytelevision 0 0 0.0 0 0 0.0
Other(categories12through15) 2,081 1,844 11.4 1,048 1,003 4.4
Total(categories1through15) 26,463 24,450 7.6 16,418 16,994 3.5
Numberofservicesreporting 197 195 1.0 197 195 1.0
News(category1) 237,185 236,090 0.5 2,355 2,261 4.0
Longformdocumentary(category2(b)) 104,534 110,065 5.3 38,963 38,459 1.3
Otherinformational(categories2through5,
149,570 140,277 6.2 8,779 8,208 6.5
excludingcategory2(b))
Sports(category6) 544,071 689,462 26.7 100,248 117,672 17.4
Dramaandcomedy(category7) 163,442 124,194 24.0 154,438 171,222 10.9
All Music,dance,andvariety(categories8and9) 32,905 24,142 26.6 3,613 2,197 39.2
languages Gameshow(category10) 14,951 13,607 9.0 3,757 1,986 47.1
Humaninterest/Awardshows/Reality
127,499 114,499 10.2 76,547 79,499 3.9
(category11)
Humaninterest 61,085 50,297 17.7 46,899 49,827 6.2
Awardshows 7,050 6,864 2.6 185 1,465 691.9
Realitytelevision 59,364 57,338 3.4 29,463 28,207 4.3
Other(categories12through15) 29,856 54,885 83.8 2,721 12,717 367.4
Total(categories1through15) 1,404,014 1,507,218 7.3 391,420 434,222 10.9
Source:CRTCdatacollection
Thistable(Parts1and2)showstotalCPEandexpendituresonnonCanadianprogrammingofEnglish,
French,andthirdlanguagetelevisionservices,brokendownbyprogramcategory.Italsoshowsannual
growthratesbetweenthetwoyearsandliststhenumberofservicesreportingineachlinguisticcategory.
ThedatalistedforEnglishlanguageservicesincludeexpendituresonbilingualprogrammingand
expendituresrelatingtotangiblebenefitsandtocommitmentsmadeatthetimeoflicensing,butexcludes
CMFtopupfundingreportedbyspecialtyservices.
171
Section4.2CMR2016
CPEroseby$103.2million(7.3%)toreach$1.5billionin2015.Ofthatamount,$254.0millionwasspendon
programsofnationalinterest(PNI),down$27.6million(9.8%)comparedto2014.Alsoofnoteisthe$689.4
millionspentonsportsprogramming(45.7%oftotalCPE),whichwasupby$145.4million(26.7%)inthepast
year,partlyasaresultoftheacquisitionofNHLprogrammingrightsbyRogersandGroupeTVA,notably.
NonCanadianprogrammingexpendituresincreasedby$43million(10.9%)in2015.Expendituresonnon
Canadiansportsprogrammingincreasedby$17.4million(17.4%).
Table4.2.25CPEreportedbyPPVandVODservices($thousands)
CAGR(%)
Metric 2011 2012 2013 2014 2015
20112015
TotalPPVandVODservicesCPE 16,838 16,280 17,317 24,890 37,574 22.2
Numberofservicesreporting 30 26 23 24 24 5.4
Source:CRTCdatacollection
ThistableshowsthetotalCPEreportedbyPPVandVODservicesfrom2011to2015,aswellasthenumberof
servicesreportingandthegrowthrateduringthatperiod.
ExpendituresbrokendownbyprogramcategoryforPPVandVODservicesarenotavailable.Theamounts
shownexcludeCMFtopupfundingreportedbyPPVandVODservices,butincludeexpendituresrelatingto
ownershiptransferbenefits(tangiblebenefits)andtocommitmentsmadeatthetimeoflicensing.
172
Section4.2CMR2016
Table4.2.26StatisticaldatareportedbylicensedVODservices
The2014datareflectsdatareportedby11licensedVODservicesandthe2015datareflectsdatareportedby
12licensedVODservices.Titlesandfeaturefilmdatareflectsavailabilityonserverson31Augustofeach
year.Ordersarebasedonentirebroadcastyearsending31August.RemittedrevenuetoCanadianfeature
filmrightsholdersarebasedonanentirebroadcastyearending31August.
173
Section4.2CMR2016
vi Tangiblebenefits
Notelevisiontransactionsresultinginachangeofownershiporeffectivecontroltriggeringtangiblebenefits
wereapprovedin2015
Table4.2.27Valueoftelevisionownershiptransactionsandcorrespondingtangiblebenefitsfortheperiodfrom1
January2011to31December2015
174
Section4.2CMR2016
vii Programmingofhighstandards
TheBroadcastingActsetsoutthatprogrammingprovidedbybroadcastingundertakingsshouldbeofhigh
standard.InadditiontotheCRTC,twobodiesdealwithprogrammingcomplaintsrelatingtopublicand
communitybroadcasters,aswellasnonmembersoftheCBSC.TheCRTCalsodealswithissuesthatare
outsidetheparametersofthecodesadministeredbytheCBSC.
TheCBSCadministersspecificcodesofbroadcastconductandprovidesameansofrecourseformembersof
thepublicregardingtheapplicationofthestandardssetoutinthefollowingcodes:
CABCodeofEthics;
CABViolenceCode;
CABEquitablePortrayalCode;and
RadioTelevisionDigitalNewsAssociationofCanada(RTDNACanada)CodeofEthics.
TheCanadianBroadcastStandardsCouncil(CBSC)isanindependentorganizationcreatedbytheCanadian
AssociationofBroadcasters(CAB)toadministerstandardsestablishedbyCanadasprivatebroadcasters.The
CBSCsmembershipincludesmorethan790privatesectorradioandtelevisionstations,specialtyservices,
payservices,andnetworksacrossCanada.MembershipincludesbroadcastersbroadcastinginEnglish,
French,andthirdlanguages.Formoreinformation,visitwww.cbsc.ca.
TheAdvertisingStandardsCanada(ASC)isanational,notforprofitadvertisingselfregulatorybodythat
respondstocomplaintsbyconsumersandspecialinterestgroupsregardingadvertisingwithrespecttoall
mediasubjecttotheCanadianCodeofAdvertisingStandards,theprincipalinstrumentofadvertisingself
regulation.
TheASCrespondstocomplaintsbyconsumersandspecialinterestgroupsregardingadvertisingwithrespect
toallmediasubjecttotheCanadianCodeofAdvertisingStandards,theprincipalinstrumentofadvertising
selfregulation.Inaddition,theASCundertakespreclearancefunctionsinfiveindustrycategories,which
consistofreviewingadvertisementsbasedonapplicablelegislation,regulations,and/orindustrycodesand
guidelines.
AdditionalinformationontheASCcanbefoundat:www.adstandards.com/en/
175
Section4.2CMR2016
Table4.2.28NumberoftelevisionrelatedcontactsreceivedbytheCRTC,bytypeofissue
CRTC Qualityof
Termsand Disability
Year policies/ Billing service/ Programming Loudness Other
conditions issues
decisions delivery
Source:CRTCCorrespondenceTrackingSystem
ThistablesummarizesthecontactsreceivedbytheCRTC,whichincludedquestions,comments,complaints,
andothercommunications,brokendownbythetypeofissueraised.
In20152016theCRTCreceived4,144contacts,a14%decreasefrompreviousyears4,819contacts.
176
Section4.2CMR2016
Table4.2.29TelevisionprogrammingcomplaintsreceivedbytheCommissionandreferredtotheCanadian
BroadcastStandardsCouncil,bysectorandissue
177
Section4.2CMR2016
to31March).BetweenApril2015andMarch2016,approximately19%ofthecomplaintsrelatingtotelevision
receivedbytheCommissionwerereferredtotheCBSC.
TheCRTCsCorrespondenceTrackingSystemcountsmultiplecontactsfromthesameclientregardingthe
samecomplaintasseparateunits.Consequently,theactualnumberofcomplaintsreceivedshouldbeslightly
lowerthanthefiguresindicated.ThecategoryAbusivecommentincludescomplaintsalleginghatredor
contemptincitedonairagainstoneofthegroupsidentifiedintheTelevisionBroadcastingRegulations,1987
ortheSpecialtyServicesRegulations,1990.ThecategoryOffensivecommentincludescomplaintsalleging
offensivehumour,orothercommentsthatdonotfallundertheabusivecommentprovisioninCRTC
regulations.ThecategoryOffensivelanguageincludescomplaintsallegingoffensivelanguageinsonglyrics
orinspokenwordprogramming.
Table4.2.30TelevisionrelatedcomplaintshandledbytheCBSC,bylanguageofbroadcastandoriginofthe
program(20142015)
Conventionaland
Category Subcategory PayTV Total
specialtyTV
Englishlanguage 508 7 515
Frenchlanguage 104 4 108
Languageofbroadcast Thirdlanguage 7 0 7
Other 1 0 1
Total 620 11 631
Canadian 477 4 481
Foreign 110 2 112
Originoftheprogram
Other 33 5 38
Total 620 11 631
Source:CBSCannualreports
ThecategoryOtherineachcasereferstocomplaintsforwhichtherewasnotenoughinformationforthe
CBSCtodetermineeitherthelanguageofbroadcastorthenationaloriginoftheprogram.
Table4.2.31Complaintsrelatingtodigitaladvertisingandadvertisingontelevision,handledbytheASC
178
Section4.2CMR2016
viii Ownershipgroups
Thefollowingtablesprovideanoverviewofthedifferentbroadcastingownershipgroupswithacontrolling
interestinvarioustypesofdiscretionaryservicesin2015.Theoverviewcoversthetypeofservicesoffered,as
wellasthelanguageoftheservice,subscribernumbers,revenues,PBITandPBITmarginforeachservice.
Inregardtothissection:
InRegulatoryframeworkrelatingtoverticalintegration,BroadcastingRegulatoryPolicyCRTC2011
601,21September2011,theCommissionstatedthatitwouldpublishcompletefinancial
informationforspecialtyCategoryAservicesandforspecialtyCategoryBservicesownedor
controlledbyaverticallyintegratedentity.TheCommissionalsostatedthatforallindependent
individualspecialtyCategoryBservices,itwouldpublishpartialfinancialinformation,includingtotal
revenues,totalprogrammingexpenses,andtotalCanadianprogrammingexpenses.Itfurtherstated
thatitwouldpublishcompletefinancialinformationforallindependentspecialtyCategoryBservices
onanaggregatebasis.
Unpublisheddatapointsaremarkedasn/a.
ShawisaffiliatedwithCorusEntertainmentInc.(Corus),asJ.R.Shawhasvotingcontrolofboth
companies.
Ownershipisbasedonthepercentageofdirectandindirectvotinginterestheldon31December
2013.Whereachangeinownershiphasoccurred,theinformationisbasedonthedateofthe
approvaldecision,nottheclosingdateofthetransaction.
Theownershippercentagesandthefinancialresultspresentedinthetablesareforindividual
speciality,pay,PPV,andVODservices.Thepercentownershipisnotreflectedintheseresults.For
thisreason,nototalsperownershipgroupareprovided.
Onlyserviceslaunchedasof31August2015areincludedinthesetables.
Theabbreviationsusedinthefollowingtablesaredefinedasfollows:
Sp.A=SpecialtyCategoryAservice
Sp.B=SpecialtyCategoryBservice
Sp.C=SpecialtyCategoryCservice
PayA=PayCategoryAservice
PayB=PayCategoryBservice
PPV**=Payperview(**holdsbothaterrestriallicenceandaDTHPPVlicence)
VOD=Videoondemandservice
n/a=notapplicable
179
Section4.2CMR2016
Table4.2.32BCEControllingownershipinterestindiscretionaryandondemandservices,2015
ViewersChoiceCanadaceasedoperationon30September2014
180
Section4.2CMR2016
Table4.2.33CBCControllingownershipinterestindiscretionaryandondemandservices,2015
Table4.2.34CogecoControllingownershipinterestindiscretionaryandondemandservices,2015
181
Section4.2CMR2016
Table4.2.35CorusControllingownershipinterestindiscretionaryandondemandservices,2015
Numberof
Typeof Revenues PBIT PBIT
Language Service subscribers
service ($000) ($000) margin(%)
(000)
ABCSpark Sp.B n/a 11,758 n/a n/a
CartoonNetwork Sp.B n/a 3,438 n/a n/a
CMTCanada Sp.A 9,949 19,896 3,458 17.4
CosmopolitanTV Sp.B n/a 8,606 n/a n/a
EncoreAvenue PayA 1,997 18,389 10,885 59.2
EuroWorldSPORT Sp.B n/a 21 n/a n/a
MovieCentral PayA 886 81,734 6,821 8.3
Nickelodeon Sp.B n/a 5,818 n/a n/a
English OWN Sp.A 6,067 28,601 4,087 14.3
SundanceChannel Sp.B n/a 4,709 n/a n/a
TELETOONNetwork(formerly
Sp.B n/a 6,662 n/a n/a
TELETOONRetro)
TELETOON/TLTOON Sp.A 8,340 69,453 20,949 30.2
TreeHouseTV Sp.A 8,169 13,841 1,681 12.1
WMovies Sp.B n/a 7,012 n/a n/a
WNetwork Sp.A 7,692 79,862 36,211 45.3
YTV Sp.A 11,118 73,411 30,788 41.9
Historia Sp.A 1,435 20,351 12,706 62.4
Sries+ Sp.A 1,435 29,838 17,958 60.2
French
LachaineDisney(formerly
Sp.B n/a 1,621 n/a n/a
TLTOONRtro)
MediasetItalia Sp.B n/a 1,778 n/a n/a
SkyTG24Canada Sp.B n/a 233 n/a n/a
Third Telebimbi Sp.B n/a 1 n/a n/a
language Telelatino Sp.A 4,158 14,799 5,967 40.3
Telenios Sp.B n/a 32 n/a n/a
UnivisionCanada Sp.B n/a 1,424 n/a n/a
Sources:CRTCownershiprecordsandCRTCdatacollection
MovieCentralandEncoreAvenueceasedoperationon1March2016.
182
Section4.2CMR2016
Table4.2.36QubecorControllingownershipinterestindiscretionaryandondemandservices,2015
Numberof PBIT
Typeof Revenues PBIT
Language Service subscribers margin
service ($000) ($000)
(000) (%)
addikTV Sp.A 1,358 12,132 1,877 15.5
ARGENT Sp.A 502 2,170 475 21.9
CanalIndigo PPV** 1,524 7,338 2,550 35.0
Casa Sp.B 1,163 9,729 985 10.1
Illicosurdemande VOD n/a 50,012 5,483 11.0
French
LeCanalNouvelles(LCN) Sp.C 2,562 29,404 6,456 22.0
Moi&cie Sp.B 853 5,840 1,192 20.4
Prise2 Sp.B 1,134 9,053 2,537 28.0
TVASports Sp.C 1,996 81,786 38,934 47.6
YOOPA Sp.B 667 4,035 97 2.4
English SunNewsNetwork Sp.C 5,845 5,401 92.4
Sources:CRTCownershiprecordsandCRTCdatacollection
SunNewsNetworkceasedoperationon13February2015.
Table4.2.37RogersControllingownershipinterestindiscretionaryandondemandservices,2015
Numberof PBIT
Typeof Revenues PBIT
Service(Englishlanguage) subscribers margin
service ($000) ($000)
(000) (%)
FXCanada Sp.B 4,671 14,363 1,584 11.0
FXX Sp.B 1,641 4,525 1,733 38.3
G4 Sp.A 1,458 4,527 1,966 43.4
OLN Sp.A 4,960 20,059 8,179 40.8
RogersonDemand VOD n/a 47,289 1,068 2.3
Sportsnet Sp.C 7,972 360,368 53,757 14.9
Sportsnet360 Sp.A 5,694 35,101 4,948 14.1
SportsnetOne Sp.C 6,731 86,907 35,954 41.4
SportsnetPPV PPV** 1,708 19,896 17,589 88.4
SportsnetWorld Sp.B 82 11,167 335 3.0
TheBiographyChannel Sp.A 1,632 6,360 237 3.7
Sources:CRTCownershiprecordsandCRTCdatacollection
183
Section4.2CMR2016
Table4.2.38ShawControllingownershipinterestindiscretionaryservices,2015
Numberof PBIT
Typeof Revenues PBIT
Service(Englishlanguage) subscribers margin
service ($000) ($000)
(000) (%)
Action Sp.B 4,333 20,535 12,555 61.1
BBCCanada Sp.B 2,657 10,641 6,075 57.1
BCNews1 Sp.B 882 1,518 4,781 315.0
Crime+Investigation(formerlyMystery) Sp.A 3,193 19,159 10,833 56.5
D.I.Y.Network Sp.B 3,249 11,496 7,242 63.0
DjaView Sp.B 1,506 7,992 4,606 57.6
DTOUR Sp.A 4,997 25,740 15,312 59.5
FoodNetworkCanada Sp.A 6,033 67,131 29,923 44.6
FYI,(formerlyTwistTV) Sp.A 2,063 8,176 3,300 40.4
H2 Sp.A 2,816 9,358 4,196 44.8
HGTVCanada Sp.A 7,128 72,121 30,753 42.6
HistoryTelevision Sp.A 6,950 75,912 49,324 65.0
IndependentFilmChannelCanada Sp.A 1,302 9,449 3,938 41.7
Lifetime Sp.B 3,777 20,874 7,208 34.5
MovieTime Sp.B 4,247 16,004 10,193 63.7
NatGeoWild Sp.B 2,748 5,824 14 0.2
NationalGeographicChannelCanada Sp.B 5,053 26,942 17,340 64.4
ShawonDemand VOD n/a 62,056 161 0.3
ShawPayPerView(formerlyAllarcom) PPV** n/a 14,247 2,896 20.3
ShawPayPerView(formerlyHome
PPV** n/a 6,294 383 6.1
Theatre)
Showcase Sp.A 6,490 72,927 40,715 55.8
Slice Sp.A 4,977 38,885 14,252 36.7
Sources:CRTCownershiprecordsandCRTCdatacollection
184
Section4.3CMR2016
4.3 Broadcastingdistributionsector
185
Section4.3CMR2016
Broadcastingdistributionundertakings(BDUs)providesubscriptiontelevisionservicestoCanadians.They
distributeconventionaltelevision,discretionaryservicesandondemandservices.TheBDUsectionofthis
reportfocusesonthreetypesofBDUs:cable,Internetprotocoltelevision(IPTV),andnationaldirecttohome
(DTH)satelliteserviceproviders.
In2015,BDUsreported$8.9billioninrevenues,adecreaseof0.1%over2014.Combined,thefivelargest
BDUsreported87%ofprogrammingdistributionrevenues.
TheCanadiandistributionlandscapehasbeendominatedbycableandDTHsatelliteBDUs.Whilecableisin
decline,itisstillthelargesttypeofBDUwithover60%ofthesubscribermarketshare.However,IPTVservice
providersarerapidlygrowingduetoexpandeddistributionnetworksandreach.In2015,IPTVproviders
reported,forthefirsttime,over2millionsubscribers.
Over78%ofCanadianhouseholdsstillsubscribetoBDUservices.Canadianslivinginurbancentresgenerally
haveachoiceofthreetofourserviceprovidersand/ortypesofservice,whilethoselivingintheNorthandin
ruralcommunitiesusuallyhaveaccesstofewerthanthreeproviders.
Canadianshavebeenincreasinglycancellingtheircurrenttelevisionservicesubscriptions.From2013to2014
BDUsubscribersdecreasedby112,759or0.98%andfrom2014to2015,thedecreasereached157,922or
1.38%.PopularonlinevideoservicesareprovidingCanadianswithmorechoiceofwhere,whenandhowto
accesstheseprograms.Theseservicesincludebothfreeandpaidindependent,nonaffiliatedservicessuchas
NetflixandYouTube.
186
Section4.3CMR2016
i Revenues
In2015,Canadiancable,IPTVandsatellitecompaniesrevenuesstoodat$8,918million,withamarginal
declineinrevenuesof0.1%since2014,thefirstdeclineinthelastfiveyears.Thesecompanieshave
generatedanaverageannualgrowthinrevenuesof1.3%since2011.
RevenuesforIPTVcompaniescontinuedontheirupwardtrendandtotalled$1,557millionin2015.This
representedanincreaseof$273million(21.3%)since2014andof$1,235millionsince2011.Bycontrast,the
revenuesofsatellitecompanieshavebeenonadownwardtrendsince2011,recordingthelargestlossesover
thepasttwoyears.Theygeneratedrevenuesof$2,289millionin2015,down5.2%from2014.
Table4.3.1Revenues($millions)ofbroadcastingdistributionundertakings(BDU)Basicandnonbasicservices
Growth(%) CAGR(%)
Typeofservice 2011 2012 2013 2014 2015
20142015 20112015
Cable 5,605 5,483 5,397 5,232 5,072 3.1 2.5
IPTV 322 585 925 1,284 1,557 21.3 48.3
DTHandMDS 2,532 2,492 2,472 2,414 2,289 5.2 2.5
Totalrevenues 8,459 8,561 8,794 8,930 8,918 0.1 1.3
Source:CRTCdatacollection
Table4.3.1showstheannualrevenuesofcableBDUs,IPTVservicesandDTHsatelliteservicescollectedby
BDUsforcable,IPTV,andDTHservicesfrom2011to2015,aswellastheannualandcompoundedannual
growthrates(CAGR)forallyearscombined.Thedataareforthe12monthperiodending31Augustofeach
year.ThegrowthofrevenuefromIPTVservicesisnoteworthyrelativetotheotherdistributionservices.
Table4.3.2Percentageofbroadcastingdistributionundertakingrevenues(%)Basicandnonbasicservices
Basicandnonbasicservices:Basicserviceistheservicedistributedinalicensedareabya
broadcastingdistributionundertakingasapackageconsistingofprogrammingserviceswhose
distributionisrequiredbytheCommission.Nonbasicserviceistheservicedistributedinalicensed
areabyabroadcastingdistributionundertakingconsistingofprogrammingserviceswhose
distributionisnotrequiredbytheCommission.
Multipointdistributionservice(MDS):Asof1September2011,theCommissionnolongerissues
MDSbroadcastinglicences.Aspartofthespectrumauctionofthe2596to2686MHzfrequency
band,whichwasthebandusedbyMDSlicensees,Innovation,ScienceandEconomicDevelopment
Canada(ISED)convertedvariousbroadcastingcertificatesissuedtoMDSundertakingstoBroadband
RadioService(BRS)licences.Asof1September2013,therearenoMDSundertakingsinoperation.
187
Section4.3CMR2016
ii SubscriberData
Cable,IPTVandsatellitecompaniesgarnered11.2millionsubscribersin2015,a1.4%(157,922subscribers)
declinefrom2014.Thisnegativetrendhasbeenacceleratingsinceitsstartin2013.Ofnote,subscriptionto
IPTVservicesrecordedadoubledigitgrowthratein2015,however,thesegainswereinsufficienttooffset
thecombineddeclinesincableandsatelliteservices.
Since2011,IPTVcompaniesincreasedtheirshareofthesubscribermarketfrom5.8%to19.2%,andcounted
2.2millionsubscribersin2015.Conversely,satellitecompanieshavedecreasedtheirshareofthesubscriber
marketto21.1%(2.4millionsubscribers),butnonethelessgarnered25.7%ofallcable,IPTVandsatellite
companiesrevenues.
Table4.3.3Broadcastingdistributionundertakingssubscriber(thousands)numbersBasicandnonbasicservices
Table4.3.4Percentageofbroadcastingdistributionundertakingssubscriber(%)Basicandnonbasicservices
Tables4.3.3and4.3.4showthenumberofsubscribersofcableBDUs,IPTVservices,andDTHsatelliteservices
from2011to2015,aswellastheannualgrowthratesandthecompoundannualgrowthrate(CAGR)for
yearscombined.Thenumberofsubscribersisasof31Augustofeachyear.
188
Section4.3CMR2016
Table4.3.5NumberofsubscribersforthelargestCanadianBDUs(thousands)
ThistableshowthenumberofsubscribersforeachofthetopfiveCanadianBDUs(basedonrevenues)within
theirexclusivemarketsectors.
Thedataareasof31MarchofeachyearwiththeexceptionofthoseforShawandCogeco,whichareasof28
Februaryofeachyear.ThedataareforcableBDUs,IPTVservices,andDTHsatelliteservices.Thedatafor
ShawincludeShawDirect,andthedataforBCEincludebroadcastingdistributionactivitiesbyBellCanada
andNorthwestel(Northwesteldatahavebeenincludedsince2011).DuetotheacquisitionofBellAliantby
BCE,BellAliantstelevisionsubscribersareincludedwithBCEasof2015.
Table4.3.6PercentageofhouseholdssubscribingtoBDUs
Year Householdsubscriptionrate(%)
2011 82.6
2012 82.8
2013 82.0
2014 80.3
2015 78.5
Source:CRTCdatacollection
Tocalculatethehouseholdsubscriptionrates,thenumberofBDUsubscriptionsattheendoftheannual
periodisdividedbythetotalnumberofhouseholdsinCanada.
189
Section4.3CMR2016
iii Financialperformance
TheEBITDAmarginisametricusedtomeasurefinancialperformance,itrepresentsearningsbeforeinterest,
taxes,depreciation,andamortizationandisexpressedasapercentageoftotalrevenues.
In2015,cable,IPTVandsatellitecompaniesreportedtheirlowestEBITDAmargininfiveyears,butitremains
healthyat19.0%.TheEBITDAmarginforcableandIPTVcompaniesfollowedarelativelysteadydecline,going
from22.5%in2011to16.1%in2015,withtheirexpendituresgrowingalmosttwiceasfastastheirrevenues
(withaverageannualgrowthratesof4.9%and2.8%respectively).Satellitecompaniesperformedbetteras
theirEBITDAmargingenerallygrewovertheperiod,startingat24.4%in2011,reachingapeakof33.4%in
2013,beforedecliningto27.7%in2015.
Figure4.3.1EBITDAmarginsachievedbyBDUsBasicandnonbasicservices
40%
33.4%
35% 32.0%
30.1%
30% 27.7%
24.4% 23.7%
23.1%
25%
23.1% 20.2%
19.0%
20% 22.5%
20.3% 19.9%
15%
15.8% 16.1%
10%
5%
0%
2011 2012 2013 2014 2015
Source:CRTCdatacollection
ThisfigurecomparestheEBITDAmarginsforcableBDUsandIPTVserviceproviderswiththoseofDTH
satelliteservicesandMDSproviders,from2011to2015.WhilethesemarginsdeclinedforcableBDUsand
IPTVservices,itincreasedforDTHsatelliteservicesandMDS.Thedataareforthe12monthperiodending
31Augustofeachyear.
190
Section4.3CMR2016
iv Performanceindicators
Table4.3.7Monthlyrevenuespersubscriber,bytypeofBDUs
Growth(%) CAGR(%)
TypeofBDUs 2011 2012 2013 2014 2015
20142015 20112015
Cable 59.36 58.72 59.39 60.11 61.40 2.1 0.8
IPTV 49.88 58.78 64.65 67.61 65.72 2.8 7.1
DTHandMDS 73.53 72.84 74.69 76.63 77.30 0.9 1.3
AllReportingBDUs 62.51 62.24 63.60 64.93 65.62 1.1 1.2
Source:CRTCdatacollection
Monthlyrevenuespersubscriber:MonthlyrevenuespersubscriberarecalculatedbydividingBDUs
annualrevenuesfrombasicandnonbasicservicesbytheaveragenumberofsubscriptionsinthe
year.Theresultisthendividedby12toobtainthemonthlyamount.Theaveragenumberof
subscribersisdeterminedbydividingthesumofthenumberofsubscribersatthebeginningandat
theendoftheyearbytwo.
v Price
Eachyear,theCommissionsurveysthepricesofbasictelevisionserviceinanumberofurbancentresand
ruralcommunities.Thecommunitieschosenfor2015aresetoutinAppendix9.In2015,datafrom24major
urbancentresandaselectnumberofruralcommunitiesshowsthatthepricesofbasicserviceandthe
numberofchannelsincludedinthebasicservicevariedsignificantlyamongserviceprovidersandacrossthe
communitiesserved,forbothtypesofcommunities.
InitsRegulatoryPolicy(201596),followingtheLetsTalkTVproceeding,theCommissionrequired
distributorstooffera$25entrylevelserviceofferingasofMarch1st2016.Thedatainthissectionpresents
2015information,assuchtheimpactofthisrequirementwillbereflectedinnextyearsreport.
Urbancentres
Figure4.3.2showsthe2015pricesforBDUsbasicservicesforCanadianslivingin24majorurbancentres.For
themostpart,thoseCanadianscouldchoosefromamongthreetypesofserviceproviders:cable,IPTVorDTH
satellite.Thepriceofthebasictelevisionservicesvaried,fromlowsof$30to$37permonthtohighsof$38
to$58permonth.
191
Section4.3CMR2016
Figure4.3.2BDUbasicservicepricesbymajorcentre,2015
BDUsbasicservicepricesbymajorcentre,2015
Iqaluit(2) 37 42
Yellowknife(2) 34 42
Whitehorse(2) 37 42
St.John's(3) 37 57
Halifax(3) 35 57
Charlottetown(3) 37 57
Fredericton(3) 37 57
Qubec(3) 30 38
Montral(3) 30 38
Oshawa(3) 37 41
Windsor(3) 35 41
StCatharinesNiagara(3) 35 41
KitchenerWaterloo(3) 37 41
London(3) 37 41
Hamilton(4) 35 41
OttawaGatineau(3) 37 41
Toronto(3) 37 41
Winnipeg(3) 34 45
Regina(4) 34 58
Saskatoon(3) 34 58
Edmonton(3) 34 42
Calgary(3) 34 42
Victoria(3) 34 42
Vancouver(3) 34 42
25 30 35 40 45 50 55 60
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
Thenumberofserviceprovidersineachurbancentreisindicatedinparentheses.Asanexample,thereare
threeBDUserviceprovidersinVancouver,wherethelowestpriceis$34andthehighestpriceis$42.
Thecompositionofabasicpackageoftelevisionservicesvariedbetween27and170channels,dependingon
locationandserviceprovider.Theservicesweregenerallyavailableindigitalandhighdefinitionformats,and
theprogramminggenerallyincludedtelevision,radio,andmusicchannels.
192
Section4.3CMR2016
Ruralcentres
Figure4.3.3BDUbasicservicepricesbyprovince,urbanandrural,2015
BDUbasicservicepricesbyprovince,urbanandrural,2015
NvtUrban(2) 37 42
NvtRural(2) 37 42
N.W.T.Urban(2) 34 42
N.W.T.Rural(2to3) 34 41
Y.T.Urban(3) 37 42
Y.T.Rural(2) 37 42
N.L.Urban(3) 37 57
N.LRural(3) 37 60
N.S.Urban(3) 35 57
N.SRural(2to3) 37 57
P.E.I.Urban(3) 37 57
P.E.I.Rural(2to3) 37 53
N.B.Urban(3) 37 57
N.B.Rural(3) 37 42
Que.Urban(3) 30 38
Que.Rural(3to4) 22 38
Ont.Urban(3) 35 41
Ont.Rural(2to4) 27 50
Man.Urban(3) 34 45
Man.Rural(2) 34 37
Sask.Urban(4) 34 58
Sask.Rural(2) 34 40
Alta.Urban(3) 34 42
Alta.Rural(3to4) 34 61
B.C.Urban(3) 34 42
B.C.Rural(3to4) 34 60
15 25 35 45 55 65
Price ($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
Thenumberofserviceprovidersineachprovince(urbanandruralareassurveyed)isindicatedinparentheses,
asanexample,inBritishColumbia,therearethreetofourserviceprovidersintheruralcommunitiessurveyed
andthreeintheurbancentressurveyed.ThelowestpricesofferedbytheseprovidersforbasicBDUserviceis
from$22to$37permonthintheruralcommunities,andfrom$30to$37inurbancentres.
193
Section4.3CMR2016
Whichcommunitieswereincluded?Fiftyfourruralcommunitieswereselectedtoassesstheprice
ofBDUbasicservices(seeAppendix9).Thesecommunitiesmetthefollowingcriteria:
ThecommunitywasnotpartofoneoftheCMAsofthe24majorcentres;
Ithadapopulationdensityoffewerthan400peoplepersquarekilometre,oritspopulation
centreshadfewerthan1,000people;
Thenumberofcommunitiesineachprovincewasproportionaltothepopulationofthe
province;and
Thecommunitieswerenotclusteredtogether.
vi Competitivelandscape
CablecompanieswerethefirstprovidersofBDUservicesinCanada.Bythemid1990s,DTHsatelliteservices
hadenteredtheCanadianmarket.Morerecently,IPTVserviceshavebecomeavailable.
In2015,CanadianslivinginurbancentreswereabletochoosebetweenthreetypesofBDUserviceproviders:
cable,IPTVandDTHsatellite.Inruralareas,justoverhalfofCanadianshouseholdsweredependentonaDTH
satelliteserviceprovider.JustlessthanhalfofruralCanadianhouseholdshadaccesstobothcableandDTH
satelliteserviceproviders.
Figure4.3.4Percentageofrevenuesandsubscribersbytypeofdistributionplatform,2015
Revenuemarketshare,2015 Subscribermarketshare,2015
DTHand DTHand
MDS,26% MDS,21%
Cable,
57% Cable, IPTV,19%
60%
IPTV,18%
Source:CRTCdatacollection
In2015,DTHandMDSservicesgenerated26%oftheTVdistributionrevenueswith21%ofthesubscribersin
thesector,whileCableserviceshad60%ofthesubscribersbutreported57%oftherevenuesofthesector.
194
Section4.3CMR2016
vii Consumervoices
Table4.3.8NumberofBDUrelatedcontactsreceivedbytheCRTC
Quality
CRTC
Prices/Rates Termsand Disability of
Year policies/ Billing Competition Other Total
conditions issues service/
decisions
Delivery
20142015 755 1,298 223 313 62 480 110 2,300 5,541
viii Onlinetelevisionservices
Figure4.3.5PercentageofCanadianswhowatchTVexclusivelyonline,nationallyandbylanguage
PercentageofCanadianswhowatchTVexclusivelyonline,nationallyand
bylanguage
15
PercentageofCanadians(%)
10
10 9
8 8
6 6
5
5 4 4 4
3
2
0
National Anglophones Francophones
Source:MTM,20122015(Respondents:Canadians18+)
195
Section4.3CMR2016
Figure4.3.6PercentageofCanadianswhosubscribetoNetflix,byregion
PercentageofCanadianswhosubscribetoNetflix,byregion
BritishColumbia 46
41
Alberta 55
49
Manitoba/ 47
Saskatchewan 32
Ontario 44
37
Quebec 23
15
Atlantic 44
40
Total 41
33
0 10 20 30 40 50 60
2015 2014
PercentageofCanadians(%)
Source:MTM,20142015(Respondents:Canadians18+)
Figure4.3.7PercentageofCanadianswhosubscribetoNetflix,byagegroup
PercentageofCanadianswhosubscribetoNetflix,byagegroup
100
PercentageofCanadians(%)
80
61
60
51
47
41 39
40 33 31
25
20 15
11
0
18+ 1834 3549 5064 65+
2014 2015
Source:MTM,20142015(Respondents:Canadians18+)
YoungerCanadiansaremorelikelytosubscribetoNetflixthanolderCanadians.
196
Section4.3CMR2016
Figure4.3.8LikelihoodofCanadianscuttingthecordontheircurrenttraditionalTVsubscriptioninthenext12
months(percentage)
LikelihoodofCanadianscuttingthecordontheircurrenttraditionalTV
subscriptioninthenext12months(percentage)
3 3 4
100
90
80
44
70 51 51
60
50
40
32
26
30 29
20
13 14
10 9
7 7 7
0
2013 2014 2015
Source:MTM,20132015(Respondents:Canadians18+)
Table4.3.9Adoptionrates(%)ofvariousvideotechnologiesinCanadabylanguagemarket
Language
Videotechnology 2011 2012 2013 2014 2015
market
Anglophone 35 43 46 50 49
PVR
Francophone 23 39 42 52 56
Anglophone 34 38 44 51 57
InternetTV
Francophone 38 39 44 42 49
Anglophone 12 21 29 39 47
Netflix
Francophone 3 5 7 12 19
Source:MTM,20112015(Respondents:Canadians18+,viewedorusedinthepastmonth)
ThistableshowsthepercentagesofCanadians18yearsofageandolderwhohadadoptedvariousvideo
technologiesandserviceseachyearfrom2011through2015.MTMdescribesInternetTVaswatchingor
streamingtelevisionprogramsorclipsavailableovertheInternet.
197
Section4.3CMR2016
ix ContributiontoCanadianprogramming
Cable,IPTVandsatellitecompaniesarerequiredtospendtheequivalentof5%oftheirannualbroadcast
relatedrevenuestothecreationandproductionofCanadianprogramming.Thiscantaketheformof
contributionstovariousCertifiedIndependentProductionFunds(CIPF),totheCanadaMediaFund(CMF)or
contributionstowardslocalexpression,whichareintendedtothecreationanddistributionofcommunity
programming.Furthermore,in2009,theCommissionestablishedanadditionalfund,theLocalProgramming
ImprovementFund(LPIF),inanefforttosupportlocalprogrammingbyconventionaltelevisionstations
duringadifficultfinancialperiod.TheLPIFwasdiscontinuedon1September2014.
ExcludingLPIF,contributionstothecreationandproductionofCanadianprogrammingbycable,IPTVand
satellitecompaniestotalled$437millionin2015,almostunchangedfrom2014.Contributionlevelstoeach
contributioncategory,namelyLocalExpression,CIPFsandtheCMFwereessentiallyunchangedfrom2014,
reflectingthetrendinrevenueswhichhaveremainedrelativelyconstantfrom2014to2015.
Figure4.3.9ContributionstoCanadianprogrammingbytype(millions)
ContributionstoCanadianprogrammingbytype(millions)
493.9
474.9
500 451.3 456.5
436.9
400
300
200
205.8 208.5 219.3 219.3 219.6
Source:CRTCdatacollection
ThisfiguresshowsthecontributionsmadebyBDUstotheCMF,theLPIFandotherindependentproduction
funds,aswellasspendingonlocalexpression(communitychannels),duringthe12monthperiodending31
Augustofeachyear.BDUcontributionsincludecontributionsreportedbycableBDUs,DTHsatelliteservices,
MDSsandsatelliterelaydistributionundertakings(SRDUs).
198
Section4.3CMR2016
Figure4.3.10BDUcontributionstoCanadianprogrammingbyrecipient
BDUcontributionstoCanadianprogrammingbyrecipient
$451M $456M$494M$475M$437M
Source:CRTCdatacollection
LPIFwasterminatedonAugust31,2014.
199
Section4.3CMR2016
x Affiliationpayments
Theprovidersofdiscretionaryprogrammingservices(bothCanadianandnonCanadian)receive
remunerationfromtheBDUsthatdistributetheirservices.Thisremunerationisreferredtoasanaffiliation
payment,andisbasedonthenumberofBDUsubscriberswhoreceivetheprogrammingservice.
PaymentstoCanadianaffiliateshaveincreasedannuallyby4.3%since2011,whereaspaymentstonon
Canadianaffiliateshaveincreasedby4.9%.Thedataarebasedonthe12monthperiodending31Augustof
eachyear.
Table4.3.10AffiliationpaymentsmadetoCanadianandnonCanadiandiscretionaryservicesreportedbyBDUs($
millions)
Growth(%) CAGR(%)
Category Typeofservice 2011 2012 2013 2014 2015
20142015 20112015
CableandIPTV 1,809 1,930 2,024 2,193 2,322 5.9 6.4
Canadian
DTHandMDS 735 726 700 716 685 4.3 1.7
affiliates
Total 2,544 2,656 2,724 2,909 3,007 3.4 4.3
CableandIPTV 263 265 285 298 316 6.0 4.7
NonCanadian
DTHandMDS 81 86 94 93 101 8.6 5.7
affiliates
Total 344 351 379 391 417 6.6 4.9
Allaffiliates Allservices 2,888 3,007 3,103 3,300 3,424 3.8 4.3
Source:CRTCdatacollection
ThistableprovidesadetailedbreakdownoftheamountsofaffiliationpaymentsmadebyBDUs(cable/IPTVvs
DTHsatellite/MDS)todiscretionaryservices,brokendownbyCanadianandnonCanadianaffiliates,forthe
years2011through2015.
Table4.3.11AffiliationpaymentsreceivedbyCanadianandnonCanadiandiscretionaryservicesreportedbyBDUs
($millions)
Growth(%) CAGR(%)
Category Typeofservice 2011 2012 2013 2014 2015
20142015 20112015
Pay,PPVandVOD 682 671 670 669 660 1.3 0.8
Canadian
Specialty 1,862 1,986 2,054 2,240 2,347 4.8 6.0
affiliates
Total 2,544 2,656 2,724 2,909 3,007 3.4 4.3
Pay,PPVandVOD 48 34 37 38 54 42.1 3.0
NonCanadian Specialty
296 317 342 353 363 2.8 5.2
affiliates
Total 344 351 379 391 417 6.6 4.9
Allaffiliates Allservices 2,888 3,007 3,103 3,300 3,424 3.8 4.3
Source:CRTCdatacollection
Thistableprovidesadetailedbreakdownoftheamountsofaffiliationpaymentsreceivedfromdiscretionary
services(pay/PPV/VODvsspecialty),brokendownbyCanadianandnonCanadianaffiliates,fortheyears
2011through2015.
200
Section4.3CMR2016
xi Broadcastingdisputeresolution
Disputeresolutionisdesignedtoeffectivelyprocessandresolvedisputesinanincreasinglycompetitive
broadcastingindustry.Theprocessandproceduresusedforresolvingdisputesthatcomeunderthe
CommissionsregulatorypurviewaresetoutinPracticesandproceduresforstaffassistedmediation,final
offerarbitrationandexpeditedhearings,BroadcastingandTelecomInformationBulletinCRTC2013637.
Disputescanbegenerallyclassifiedasfollows:(1)disputebetweenbroadcastingdistributorsand
programmingservicesconcerningthetermsofdistribution;(2)disputesbetweencompetingbroadcasting
distributorsoveraccesstobuildingsandtotheenduser;and(3)disputesbetweenprogrammersregarding
programmingrightsandmarketsserved.
Table4.3.12Numberofdisputeresolutioncasesin20152016
Staffassistedmediation 15
Formal
Finalofferarbitration 2
Informal Informalintervention 133
Source:CRTCdatacollection
Forthe12monthperiodof1April2015to31March2016.
201
Section4.3CMR2016
202
Section5.0CMR2016
5.0 Telecommunicationssectoroverview
203
Section5.0CMR2016
Canadastelecommunicationsindustryconsistsofsixsectors:local,longdistance,Internet,wireless,data,
andprivateline.Thetwolargestsectorscombined,Internetandwireless,havegrownbymorethan$7.1
billionor27.0%since2011andaccountedformorethan61.6%oftotaltelecommunicationsrevenuesin
2011and70.0%in2015.Overthesamefiveyearperiod,wirelinevoiceservicerevenueshaveshownsteady
declines,representing20.3%oftotaltelecommunicationsrevenuesin2015comparedto28%in2011.
In2015,Canadiantelecommunicationsrevenuesreached$47.8billion,withthevastmajority(92%)derived
fromretailservicesandthebalance(8%)fromthewholesalesector.Serviceproviderssuppliedretailservices
toover12millionhouseholds,onemillionbusinesses,and,throughthewholesalemarket,800other
telecommunicationsentities.
LargeincumbentTSPscapturedover61%ofindustryrevenues.Theirmaingroupofcompetitors,cablebased
carriers,reported31%ofrevenuesand8%ofthetotalnumberofcompanies.Resellerscomprisednearly68%
ofserviceprovidersbutonly4%ofrevenues.Theseenterprisesgenerallyacquirewholesaleservicesfrom
incumbentTSPsand/orcablebasedcarrierstoprovidetelecommunicationsservicestotheirowncustomers.
204
Section5.0CMR2016
i Revenues
Table5.0.1Telecommunicationsrevenues(retailandwholesale)($billions)
Growth(%) CAGR(%)
Sector Category 2011 2012 2013 2014 2015
20142015 20112015
Retail 20.6 20.6 20.9 21.2 21.4 0.7 0.9
Wireline Wholesale 3.0 2.9 2.8 2.7 2.8 2.1 1.8
Wirelinetotal 23.6 23.5 23.7 24.0 24.2 0.8 0.5
Retail 18.4 19.5 20.2 20.9 22.5 7.5 5.2
Wireless Wholesale 0.7 0.8 1.0 1.0 1.1 8.1 11.8
Wirelesstotal 19.1 20.4 21.2 22.0 23.6 7.6 5.4
Retail 39.0 40.2 41.1 42.2 43.9 4.1 3.0
Total Wholesale 3.7 3.7 3.7 3.8 3.9 3.8 1.3
Total 42.8 43.9 44.8 45.9 47.8 4.1 2.8
Source:CRTCdatacollection
Revenuesfromtelecommunicationsservicesarederivedfromsalestoresidentialandbusinessconsumers
(retailrevenues)andtoothercarriers(wholesalerevenues).Thetabledisplaysretailandwholesalerevenues
forwirelineandwirelessservicesfortheyears2011to2015.
Estimatesweremadetocapturerevenuesofserviceprovidersthatdidnotprovidedata.In2015,these
estimateswerelessthan1%oftotaltelecommunicationsrevenues.Revenuesderivedfromthesaleandrental
oflocalandaccessterminalequipmentandothernontelecommunicationsrevenueswereexcludedfrom
wirelineretailservicerevenues.
Table5.0.2Telecommunicationsrevenuedistributionbyregion($billions)
Percentageof Growth(%)
Region 2014 2015
total(%) 20142015
Atlantic 3.1 3.2 6.8 5.0
BCandTerritories 6.3 6.6 13.9 5.6
Ontario 18.2 18.7 39.0 2.5
Prairies 9.5 10.0 20.9 5.8
Qubec 8.9 9.3 19.4 4.0
Source:CRTCdatacollection
Estimatesweremadeforcompaniesthatwerenotrequiredtoprovideprovincialandterritorial
telecommunicationsdata.
205
Section5.0CMR2016
ii Forbearance
In2015,approximately95%oftelecommunicationsrevenueswerefromservicesthattheCommissionhas
determinedaresufficientlycompetitivethattarifffilingsarenolongerrequired.
Forbearance:TheCommissionrefrainsfromregulationwhenitfindsthataserviceissubjectto
sufficientcompetitionorwhererefrainingisconsistentwiththeCanadiantelecommunications
policyobjectives.Thisisreferredtoasforbearance.Whereaserviceisforborneitisgenerally
relievedoftheobligationofaCommissionapprovedtariff.Otheraspectsoftheservicemaystillbe
regulated.
Table5.0.3Percentage(%)oftelecommunicationsrevenuesgeneratedbyforborneservices
Thistableshowsthepercentageoftelecommunicationsrevenuesbymarketsectorthatarenotregulatedby
theCRTCfrom2011to2015.Withrespecttothelocalandaccessmarketsector,accessreferstowireline
servicesthatprovidetelecommunicationsservicesaccesstothesubscriberorthetelecommunicationsnetwork.
iii CanadianOwnership
Section16oftheTelecommunicationsActaddressestheeligibilityofCanadiancarrierstooperateas
telecommunicationscommoncarriers.Forthepurposesofapplyingtheprovisionsofsection16,the
Commissionhasdeterminedthat,fortheperiodbetweenthedateofreleaseofthe2015Communications
MonitoringReportandthedateofreleaseofthe2016edition,thetotalannualrevenuesfromtheprovision
oftelecommunicationsservicesinCanadais$47.8billion.
Whatdoessection16oftheTelecommunicationsActrequire?Subjecttocertainexceptions,section
16requiresthattelecommunicationscompaniesthatownoroperatetelecommunication
transmissionequipmentandhaveCanadiantelecommunicationsrevenuesgreaterthan$4.8billion
(i.e.10%oftotalCanadiantelecommunicationsrevenues)beCanadianownedandcontrolled.
206
Section5.0CMR2016
iv Number,size,andtypeofcompanies
Figure5.0.1Percentageoftelecommunicationsrevenues,bytypeofTSP,2015
Telecommunicationsrevenues,bytypeofTSP(%)
LargeincumbentTSPs 61
1
1
SmallincumbentTSPs 4
Cablebasedcarriers 31
8
3
Otherfacilitiesbasedserviceproviders 19
4
Resellers 68
0 10 20 30 40 50 60 70 80
Percent(%)
Revenues Serviceproviders
Source:CRTCdatacollection
Thisgraphdisplaysthepercentageoftotalrevenuescapturedbytypeofprovideroftelecommunications
servicesandthepercentageofprovidersofferingservice.
TheincumbentTSPdatadisplayedaboveincludesrevenuesfromalloftheirCanadiantelecommunications
operations,bothinsideandoutsideoftheirtraditionaloperatingterritory.
Providersoftelecommunicationsservicesprovidediverseinformationandcommunicationstechnology(ICT)
services,rangingfromvoiceanddatatelecommunicationsservicestodatastorageandcloudcomputing,and
otherservicesencompassingbothCanadianandnonCanadianactivities.In2015,59%ofrevenueswerefrom
telecommunicationsservicesprovidedtoCanadians.Theremaining41%werefromotherICTservices,
broadcastingdistributionservices,andnontelecommunicationsservicessuchasfloorspacerentalservices
andfleetoperations.
Theindustryisdominatedby10largecompaniesthatcollectively,withtheiraffiliates,accountedfor93%of
Canadiantelecommunicationsrevenuesin2015.Theremainingcompaniesaccountedforlessthan$3.3
billionoftheserevenues.
207
Section5.0CMR2016
Figure5.0.2Percentoftotaltelecommunicationsrevenuesbyownershipgroups(%)
83 84 84
PERCENTAGE(%)
9 9 9 8 7 7
GroupBell,GroupQubecor,GroupRogers,GroupShaw,andGroupTELUSareCanadasfivelargestproviders
oftelecommunicationsservices.Combined,includingtheiraffiliates,theyaccountedfor84%oftotalmarket
revenues.Thenextfivelargestgroups/entitiesaccountedfor9%oftotalmarketrevenues.Theremaining
groups/entitiescaptured7%.
Thetop10groups/entitiesarefacilitiesbasedserviceproviders,meaningthattheyownandoperatethe
transmissionequipmentrequiredtoprovidetelecommunicationsservices.Oftheremaininggroups/entities,thevast
majorityareresellers.
ProvidersoftelecommunicationserviceareclassifiedaseitherincumbentTSPsoralternativeservice
providers.Thealternativeprovidersconsistofresellersandotherfacilitiesbasedserviceproviders,which
includecablebasedcarriers.
IncumbentTSPsarethetraditionaltelephonecompanies.Formonitoringpurposes,thisgroupofTSPsis
furthersubdividedintolargeandsmallincumbentTSPs.Additionaldetailsontheclassificationsofproviders
oftelecommunicationsservicescanbefoundinAppendix8.
TheincumbentTSPsrevenueshaveincreasedatanaverageannualrateof1.8%overthe2011to2015
period.Overthesameperiod,revenuesforalternativeprovidersoftelecommunicationsservice,including
resellers,grew4.7%annually.Overall,thefacilitiesbasedalternativeserviceprovidershaveexperiencedthe
strongestgrowthintelecommunicationsrevenues,whichincreased21%,from$13.6billionin2011to
$16.4billionin2015.
208
Section5.0CMR2016
Table5.0.4Totaltelecommunicationsrevenues,bytypeofserviceprovider($millions)
Growth(%) CAGR(%)
Type Subtype 2011 2012 2013 2014 2015
20142015 20112015
Large
27,205.0 27,478.5 27,818.4 28,432.3 29,193.2 2.7 1.8
incumbentTSPs
Smallincumbent
Incumbent 469.9 474.4 450.4 448.1 471.2 5.2 0.1
TSPs
TSPs
Subtotal 27,674.9 27,953.0 28,268.8 28,880.4 29,664.4 2.7 1.8
Percentoftotal
65 64 63 63 62
(%)
Cablebased
12,722.1 13,260.2 13,785.5 14,204.1 14,976.7 5.4 4.2
carriers
Othercarriers 866.8 1,161.5 1,226.0 1,247.3 1,486.2 19.2 14.4
Alternative Facilitiesbased
13,589 14,421.7 15,011.6 15,451.4 16,462.9 6.5 4.9
service subtotal
providers Resellers 1,493.4 1,527.7 1,542.0 1,585.5 1,647.8 3.9 2.9
Subtotal 15,082.3 15,949.3 16,553.5 17,036.9 18,137.1 6.5 4.7
Percentoftotal
35 36 37 37 38
(%)
Total All 42,757.2 43,902.3 44,822.3 45,917.3 47,801.5 4.1 2.8
Source:CRTCdatacollection
ThistabledisplaystelecommunicationsrevenuesbytypeofTSPfortheyears2011to2015.Theoutof
territoryrevenuesgeneratedbylargeincumbentTSPsarenolongerreportedseparatelyinthistable,instead,
theserevenuesareincludedintheincumbentTSPstotalrevenues.
209
Section5.0CMR2016
v Financialperformance
Thereareanumberofelementstoconsiderinassessingacompanysfinancialperformanceorprofitability.
OneoftheseisEBITDA(earningsbeforeinterest,taxes,depreciationandamortization)asapercentageof
totalrevenue(margins).
Figure5.0.3TelecommunicationsrevenuesandEBITDAmargins
TelecommunicationsrevenuesandEBITDAmargins
Totalrevenues($billions) EBITDAmargin(%)
50 50
44.6
47.8 43.3
45 45.9 40.6
44.8
40 37.7 39.8 40
35 37.0
35.0
30 32.9 33.7 30
25
23.7 24.0 24.2
20 22.0 23.6 20
21.2
15
10 10
0 0
2013 2014 2015 2013 2014 2015
TheEBITDAmarginsarecalculatedforTSPsthathadtelecommunicationsrevenuesgreaterthan80%oftheir
totalrevenues.
Thisfigureshowsthetotalgrowthintelecommunicationsrevenuesfromwirelessandwirelineservices
between2013and2015.ItalsoshowstheEBITDAmarginsinpercentagesforwireless,wireline,andtotal
telecommunications.
Nonfacilitiesbasedalternativeserviceproviders(i.e.,resellers)generallyhadalowerEBITDAmargin.In
2015,contrarytopreviousyears,theEBITDAmarginforotherserviceproviders,thosethatwereneither
cablebasedortraditionaltelephonecompanies,wassimilartothatoffacilitiesbasedserviceproviders
margin.Thiswasduetosomecompaniesreportingextraordinaryaccountingitemsintheirincome
statement.ExcludingextraordinaryitemsusedtocalculateEBITDAmargins,onaverage,nonfacilitiesbased
alternativeserviceprovidersEBITDAmarginswereapproximatelyonequarterthatoffacilitiesbasedservice
providers.TheoverallEBITDAmarginshaveincreasedforbothwirelineandwirelessby1.3%and4.0%,
respectively.Totalrevenueshavealsoincreasedoverall;adifferenceof$1.9billionintotal
telecommunicationsisapparentinthefigureabove.
210
Section5.0CMR2016
Figure5.0.4PercentageoftotalrevenuesbysizeofentityandtheirrespectiveEBITDAmargins,2015
PercentageofrevenuesandEBITDAmarginsbysizeofentity,
2015
120
97.3
100
Percentage(%)
80
60
40.4
40
14.8 17.2
20
2.0 0.6
0
Greaterthan$100million Between$10and$100million Between$1and$10million
Revenue(%) EBITDAmargin(%)
Source:CRTCdatacollection
ThepercentageofrevenuesandprofitabilityarecalculatedforTSPsthathadtelecommunicationsrevenues
greaterthan80%oftheirtotalrevenuestoensureproperrepresentationofthetelecommunicationssector.
Thesecompaniesweresubdividedintothreetelecommunicationsrevenueranges:$1$10million,$10$100
million,andgreaterthan$100million.
ThecollectiveEBITDAmarginofcompanieswithCanadiantelecommunicationsrevenuesgreaterthan80%of
theirtotalrevenueswas39.8%.Asdisplayedabove,companieswithrevenuesinexcessof$100million
displayedthehighestEBITDAmargin,40.4%.Companieswithtelecommunicationsrevenuesbetween$10
millionand$100millioncollectivelyhada14.8%EBITDAmarginandthosebetween$1and$10millionhada
17.2%margin.Note,thosecompanieswithtelecommunicationsrevenuesbetween$1and$10millionhadthe
largestdropinrevenuesof$4.6million.
211
Section5.0CMR2016
vi Annualinvestmentinplantandequipment
Annualinvestmentinplantandequipmentreferstothecapitalexpendituresmadetoreplenishor
upgradethenetworkofaprovideroftelecommunicationsservices.In2015,TSPs(withover$100millionin
revenues)spent$13.3billiononcapitalexpendituresofwhich38%wereforaccessservicesand15%were
networkrelated.Theremaining47%relatedtospectrumandnonnetworkactivitiessuchasbillingandfleet
operations.
Table5.0.5Telecommunicationsinvestmentsmadeinplantandequipment,bytypeofproviderof
telecommunicationsservice($billions)
Growth(%) CAGR(%)
Sector Category Subcategory 2011 2012 2013 2014 2015
20142015 20112015
Incumbent
All 4.6 4.7 4.9 4.8 5.2 7.3 2.8
TSPs
Otherfacilities
basedservice
providers
Alternative 2.4 2.3 1.9 2.3 3.1 33.6 5.9
Wireline (including
service
cablebased
providers
carriers)
Resellers 0.03 0.04 0.04 0.03 0.02 14.2 4.3
Subtotal 2.5 2.4 2.0 2.3 3.1 33.1 5.8
Total All 7.1 7.1 6.9 7.1 8.2 15.7 3.8
Wireless Total All 2.5 2.6 2.3 7.5 5.1 32.2 20.0
Total Total All 9.6 9.7 9.2 14.7 13.3 8.9 8.7
Source:CRTCdatacollection
ThistableshowstheinvestmentsmadebytypeofTSPfortheperiodbetween2011and2015.
ThedatafortheincumbentTSPsincludestheiroutofterritoryoperations.ThetablealsoexcludesTSPswith
revenueslessthan$100million,whoarenotrequiredtoprovidethisdata.
Thedataaboveincludeexpendituresmadetoacquirespectrum.In2014,wirelessexpendituresincreased
significantlyduetothesaleofthe700MHzspectrumheldbyInnovation,ScienceandEconomicDevelopment
Canada(ISED).In2015,thesaleofthe2500MHzandAWS3spectrumhelpedboostwirelessexpenditures.
Since2011,incumbentTSPsreportedonaverage43%ofthecapitalexpenditures.Resellershadtheleast
amountofcapitalexpendituressincetheyusethetransmissionfacilitiesofothers.
Ausefulmeasuretocompareannualcapitalexpendituresiscapitalintensity.Underthismeasure,cable
basedcarriersandotherfacilitiesbasedserviceprovidersspentonaverage34centsfromeveryrevenue
dollaroverthepastthreeyearsonwirelinefacilitiescomparedto33centsbytheincumbentTSPs.
212
Section5.0CMR2016
Figure5.0.5Telecommunicationscapitalexpendituresasapercentageofrevenues,bytypeofTSP
Capitalexpendituresasapercentageofrevenues
50
41
43
40 37 35
Capitalintensity(%)
33 32
35
30 27
30 32
28
20 22
13 13 11
10
0
2011 2012 2013 2014 2015
Wirelessproviders
IncumbentTSPs
Cablebasedcarriersandotherfacilitiesbasedserviceproviders
Source:CRTCdatacollection
ThisfigureshowsthecapitalintensityofTSPsfortheperiodbetween2011and2015.
In2014,wirelessexpendituresincreasedsignificantlyduetothesaleofthe700MHzspectrumheldby
Innovation,ScienceandEconomicDevelopmentCanada(ISED).In2015,thesaleofthe2500MHzandAWS3
spectrumhelpedboostwirelessexpenditures.TSPswithrevenueslessthan$100millionarenotincludedas
thesecompanieswerenotrequiredtoprovidethisdata.
Capitalintensityisameasureofthedegreeorlevelacompanyspendsonitsplantandequipment.It
isderivedbydividingannualcapitalexpendituresbyannualrevenues,expressedasapercentage.
213
Section5.0CMR2016
214
Section5.1CMR2016
5.1 Telecommunicationsretailsectors
215
Section5.1CMR2016
Asnotedintheprevioussection,Canadastelecommunicationsindustryconsistsofsixsectors:local,long
distance,Internet,wireless,data,andprivateline.
In2015,Canadianretailtelecommunicationsrevenueswere$43.9billion,ofwhich49%werefromwireline
services.Ofthewirelinerevenues,58%werefromresidentialservicesand42%frombusinessservices.The
top5incumbentTSPsandtop5cablebasedcarriersreported60%and33%ofretailtelecommunications
revenues,respectively.Collectively,these10companiescaptured93%ofallretailrevenues.Theremaining
7%oftherevenuesweregarneredbyalargenumberofresellersandotherfacilitiesbasedserviceproviders.
Thedatasuggeststhatcompanieswhichoperatedinmultiplesectorscontinuetohaveclearcompetitive
advantagesrelativetothosewhoarelessintegrated.
In2011,revenuesfromwirelessserviceswere$18.4billionor47%oftotalretailrevenues.By2015,mobile
wirelessservicerevenuesincreasedto$22.5billionor51%oftotalretailrevenues.Forthefirsttimeever,
morethan50%ofallretailrevenuesin2015werefromwirelessservices.Thisgrowthwasdriveninlargepart
byincreasedsubscriptionsandheighteneddemandforwirelessdataservices.Datarevenues,excluding
roamingandotherservices(e.g.interconnection),haveexperiencedanaverageannualgrowthrateof18.8%
between2011and2015.
Wirelinerevenueshaveincreasedatamuchslowerpacesince2011.Wirelineservicerevenuesincreased
from$20.6billionin2011,or53%ofretailtelecommunicationsrevenues,to$21.4billion,or49%,in2015.
Thissmallexpansionmasksthefactthatwirelinevoiceservicesrevenueshavefallenbynearly$1.9billionor
18%,since2011.Thenumberoflocallineshasalsodeclinedfrom18.3millionlinesin2011to15.6million
linesin2015.Incontrast,Internetwastheonlywirelineservicethatexperiencedpositiverevenuegrowthin
2015.Infact,Internetwasthefastestgrowthsector,acrossallsectors,withrevenuegrowthofmorethan
$835millionor9.9%in2015.
Telecommunicationsservicerevenuesexcluderevenuesfromthesaleandrentalofwirelinetelephonesets.
Annualinvestmentinplantandequipmentonlyincludesinvestmentsmadebycompanieswithannual
revenuesgreaterthan$100million.
216
Section5.1CMR2016
i Revenues
Telecommunicationsrevenuescomefromavarietyofsources.Revenuesfromwirelinevoiceservicescome
fromlocaltelephoneandlongdistanceservices,whilerevenuesfromnonvoiceservicescomefromInternet
services,newerdataprotocolsservices(suchasEthernetandIPVPN),legacydataprotocolsservices(suchas
X.25andframerelay)andprivateline.Revenuesformobilewirelesscomefrommobilevoiceanddata
services,andfromthesaleandrentalofmobilesdevices.
Table5.1.1Telecommunicationsretailrevenues,bymarketsector($billions)
Growth(%) CAGR(%)
Sector Category Subcategory 2011 2012 2013 2014 2015
20142015 20112015
Local 8.1 7.8 7.7 7.4 7.1 4.0 3.1
Wireline
Longdistance 2.4 2.1 1.9 1.8 1.5 14.2 11.1
voice
Subtotal 10.5 10.0 9.6 9.2 8.7 6.0 4.8
Internet 6.8 7.2 7.7 8.4 9.2 9.9 8.0
Newerdataprotocols 1.7 1.8 1.9 1.9 1.9 1.1 2.4
Wireline Legacydataprotocols,
Non 1.6 1.7 1.7 1.7 1.6 7.2 0.5
privateline,andother
voice
Dataprotocols,private
3.3 3.5 3.6 3.6 3.5 3.9 1.0
lineandothersubtotal
Nonvoicesubtotal 10.1 10.7 11.3 12.0 12.7 5.8 5.9
Total Totalwireline 20.6 20.6 20.9 21.2 21.4 0.7 0.9
Wireless Total Totalwireless 18.4 19.5 20.2 20.9 22.5 7.5 5.2
Total Total Grandtotal 39.0 40.2 41.1 42.2 43.9 4.1 3.0
Source:CRTCdatacollection
Thistablepresentsadetailedbreakdownoftheretailrevenues,annualgrowthratesandtheCAGRfor
wirelineandwirelessservicesbymarketsectorfortheyears2011to2015.
Wirelineservicesaregenerallyahouseholdorabusinessservice,whereasmobilewirelessservicesarean
individualorpersonaltypeofservice.In2014,themostrecentperiodforwhichtelephonepenetrationdata
isavailablefromStatisticsCanadasSurveyofHouseholdSpending,75.5%ofhouseholdshadwirelineservice,
85.6%hadwirelessservice,13.6%hadonlywirelineserviceand23.7%hadonlywirelessservice.
217
Section5.1CMR2016
Figure5.1.1Telecommunicationswirelineandwirelessretailrevenues
Telecommunicationswirelineandwirelessretailrevenues
60 52.8%
51.4% 50.9% 50.3% 48.7%
50
Revenues($billions)
40 $20.9 $22.5
$19.5 $20.2
$18.4
30
20
0
2011 2012 2013 2014 2015
Wirelinerevenues Wirelessrevenues Percentwirelinerevenues
Source:CRTCdatacollection
Thisgraphpresentstheretailwirelineandmobilewirelessrevenuesfortheyears2011to2015.Overthis
period,aggregaterevenuesfromwirelineandwirelessserviceshaveincreasedsteadily.Thelineonthegraph
representsretailwirelinerevenuesasapercentageoftotalretailtelecommunicationsrevenues.
218
Section5.1CMR2016
Figure5.1.2Distributionoftelecommunicationsretailrevenues,bymarketsector
Telecommunicationsretail Telecommunicationsretail
revenues,bymarketsector2011 revenues,bymarketsector2015
Local,
Local, 16%
21%
Long
distance,
Long
Wireless, 3%
distance, Wireless,
47%
6% 51% Internet,
21%
Internet,
17%
Dataandprivate Dataandprivate
line,8% line,8%
Source:CRTCdatacollection
Thesetwofiguresshowthedistributionofretailtelecommunicationsrevenuesbymarketsectorfortwo
periods,2011and2015.Wirelessdataservicesarecapturedwithinthewirelessmarketsector.Wireless
servicesarecapturingincreasinglylargersharesofthemarket,whilethemarketshareoflongdistanceand
localtelephoneserviceshasdeclined.
219
Section5.1CMR2016
ii Technologyindicators
Technologyhasbeenakeydriverofgrowthinthetelecommunicationsindustry.Ithaspromotednetwork
efficiencies,andserviceandproductinnovation,andfacilitatedcompetition.Revenuesfromlegacyservices
havegenerallybeendecliningasconsumersswitchtootherservicesthatprovidegreaterfunctionalityand
flexibility.
Figure5.1.3Annualrevenuechangefornewerandlegacytelecommunicationsservices,bytechnology
Annualrevenuechangefortelecommunicationsservices
2.0
Revenuechange($billions)
1.5
1.0
Legacydata
0.5 and
Newerdata privateline Long
protocols Local distance
0.0
Wireless Internet
0.5
NewertechnologiesarechangingthewayCanadiansaccesstelecommunicationsservices.Thisgraphshows
theannualchangeinrevenuesfornewertechnologiessuchaswireless,Internet,andotherservicesbasedon
dataprotocolsineachofthepastthreeyears.Thegraphalsocomparestheannualrevenuechangefornewer
servicesandforlegacyservicessuchaslocal,legacydataandprivateline,andlongdistanceservices.
NewerdataprotocolsrefertoservicesusingprotocolssuchasEthernetandIP.Legacydatarefersto
servicesusingprotocolssuchasX.25andframerelay.
220
Section5.1CMR2016
Figure5.1.4ResidentialIPbasedservicerevenues
ResidentialIPbasedservicerevenues
12.0
10.2
10.0 9.2
Revenues($billions)
8.3
8.0 7.2 7.3
6.5 6.5
5.9
6.0 5.4
4.9
4.0
Figure5.1.5Homespassedbyfibreopticcable(millions),2015
Homespassedbyfibreopticcable,2015
14
12
Homes(millions)
10
8
7.7
12.8
6
2 3.3 0.04
0 0.1 0.1
Incumbents Cablebasedcarriers Otherfacilitiesbasedservice
providers
FTTP FTTN
Source:CRTCdatacollection
Providersoftelecommunicationsserviceareadoptingfibreopticbasedsystems.Thisgraphshowsthenumberof
premisesthatwereeitherpassedbyfibrebasedlines(FTTP)orthatwerepassedbycopperlinesconnectedtoa
nodethatwasservedbyafibreopticcable(FTTN).Thenodeconnectedbyfibreopticcableistheclosetnodetothe
premises.Anodeisapedestalwhereconnectionsaremade.Thenumberofhomespassedreferstothenumberof
homesthatcanhavethetelecommunicationsserviceusingthistechnology.
221
Section5.1CMR2016
Afibreopticcableisacablecontainingoneormorestrandsthatcarrylight.Thelightisusedasa
mediumtotransmitdata.Afibreopticcableisexcellentfortransmissionoverlongerdistancesand
athigherbandwidthsorcapacitythanwirecables.
Figure5.1.6Percentageofresidentiallinesusingfibreopticcable,2015
Percentageofresidentiallinesusing Percentageofresidentiallinesusing
fibreopticcable,2014 fibreopticcable,2015
FTTP,6.2% FTTP,8.9%
FTTN,
25.3% FTTN,
22.9%
Nonfibre, Nonfibre,
68.5% 68.1%
Source:CRTCdatacollection
Thesefiguresshowthepercentageoffibrebasedlinesasapercentageoftotalresidentiallinesin2014and2015.
222
Section5.1CMR2016
iii Competitivelandscape
Facilitiesbasedprovidersoftelecommunicationsservicesaccountedfor96%oftheretailtelecommunication
revenuesin2015.Cablebasedcarriersandotherfacilitiesbasedalternativeprovidersoftelecommunications
servicesarethelargestsourceofcompetitiontotheincumbentTSPs.
Figure5.1.7Totalretailtelecommunicationsrevenuemarketshare,bytypeofserviceprovider,2015
Totalretailtelecommunicationsrevenue
marketshare
Resellers
4%
Cablebased
carriersand
otherfacilities
service IncumbentTSPs
providers 60%
36%
Source:CRTCdatacollection
Totalretailtelecommunicationsrevenuesin2015were$43.9billion.Thischartshowsthepercentageshareofthe
revenuescapturedbyseparategroupsofprovidersoftelecommunicationsservices.TheIncumbentTSPscaptured
thelargestshareofthemarket.CablebasedcarriersandotherfacilitiesbasedalternativeTSPscapturedthenext
largestshare,followedbyresellers.
223
Section5.1CMR2016
Table5.1.2Numberandpercentageofretailtelecommunicationsrevenuesgeneratedbycompaniesoperatingin
multiplemarkets
Numberofreportinggroups
Numberof Percentageoftelecomrevenues
orentitiesoperatingin
market generatedinthesemarkets(%)
thesemarkets
sectors
2013 2014 2015 2013 2014 2015
6 9 8 7 84 84 82
5 12 11 14 10 10 10
4 29 25 23 3 2 1
3 33 42 36 1 1 2
2 26 22 37 1 1 2
1 44 43 57 1 2 3
Source:CRTCdatacollection
Thistableshowsthedominanceoflargercompaniesinthetelecommunicationsmarketsectors.Forexample,
althoughfewcompaniesoperateinallsixtelecommunicationsmarketsectors(local,longdistance,Internet,
wireless,data,andprivateline),thesecompaniescapturedalmost82%oftotalmarketrevenues.Reporting
groupsincludeaffiliatedcompanies.
Entitieswithservicesinfiveormoremarketsectorsaregenerallylargefacilitiesbasedcompanieswith
revenuesgreaterthan$100million.Companieswithservicesintwoorfewermarketsectorsaregenerally
resellerswithrevenueslessthan$10million.
Table5.1.3Wirelinetelecommunicationsrevenuemarketshare(%),bytypeofserviceprovider,2015
Inthewirelinetelecommunicationsmarketsectors,alternativeserviceprovidersmadegreaterrevenuegains
intheresidentialmarketthaninthebusinessmarket.Contributingtothisincreasearethecablecompanies
thatupgradedtheircablenetworkstoprovidetelephonyservicestotheirresidentialtelevisionsubscribers.
Wirelinemarketsectorsincludelocaltelephonemarketsector,longdistancemarketsector,Internet
marketsectoranddataandprivatelinemarketsector.
224
Section5.1CMR2016
iv Contribution
In2015,approximately10%ofresidentialtelephonelineswereinhighcostservingareas.Aspartofa
commitmenttowardsthesocialandeconomicobjectivesoftheTelecommunicationsAct,TSPs,orgroupsof
relatedTSPs,withatleast$10millioninCanadiantelecommunicationsservicerevenues,contributed$107
milliontowardstheprovisionofresidentialtelephoneserviceinhighcostservingareasthatmetthebasic
serviceobjective.
Figure5.1.8Subsidypaidtolocalexchangecarriersandtherevenuepercentcharge
Subsidypaidtolocalexchangecarriers
180 0.9
157
160
140 132
SubsidyreceivedbyLECs
Revenuepercentcharge(%)
118
120 108 107 0.6
0.66 0.63
100
($millions)
Whatisthebasicserviceobjective?TheCommissionestablishedthebasicserviceobjectivein1999,
whichreflectedthelevelofserviceavailableatthattimetomostCanadians.Thebasicservice
objectiveensuresthatCanadiansinallregionshaveaccesstoaffordable,highquality
telecommunicationsservices.Currently,thebasicserviceobjectiveconsistsofthefollowing:
Individuallinelocaltouchtoneservice;
CapabilitytoconnecttotheInternetvialowspeeddatatransmissionatlocalrates;
Accesstothelongdistancenetwork,operator/directoryassistanceservices,enhanced
callingfeaturesandprivacyprotectionfeatures,emergencyservices,aswellasvoice
messagerelayservice;and
Aprintedcopyofthecurrentlocaltelephonedirectoryuponrequest.
225
Section5.1CMR2016
v Consumervoices
In2015,theCRTCandtheCommissionerforComplaintsforTelecommunicationsServicesInc.(CCTS)had
over40,000communicationswithCanadiansregardingtelecommunicationsservices.Ofthese,53%were
withtheCRTCand47%werewiththeCCTS.Wirelessserviceissueswerethemostcommon(38%),followed
byInternetissues(21%)andtelemarketingissues(16%).
Theunderlyingissuesofthesecomplaintswerebillingerrors(34%),contractdisputes/termsofservice(18%),
andservicedelivery/provisionofservice(14%).
WhatistheCCTS?TheCCTSisanindependentorganizationdedicatedtoworkingwithconsumers
andserviceproviderstoresolvecomplaintsabouttelephoneandInternetservices.Itsstructureand
mandatewereapprovedbytheCRTC.TheCCTShandlescomplaintsaboutmosttelecommunications
servicesprovidedtoindividualsandsmallbusinesses,includinghomephone,wireless,Internet,and
VoIPservices.CCTSisalsoresponsibleforadministeringtheWirelessCode.Additionalinformation
ontheCCTScanbefoundat:https://www.cctscprst.ca/
Table5.1.4NumberoftelecommunicationsrelatedcontactsreceivedbytheCRTC,bytypeofissueandservice,
2015
Contactsper10,000
CRTC
Billing Qualityof Provisionof Termsof residentiallines,
Service policies/ Other Total
/rates service service service subscribersor
decisions
payphones
Telemarketing 6,714 6,714 6.5
Incumbenttelephone
companies
491 1,586 615 410 225 43 3,370 6.1
Wirelessservices 1,021 2,490 473 361 902 118 5,365 1.8
Internetservices 1,368 806 710 529 184 97 3,694 3.1
Telecommunicationservices 765 297 71 126 64 82 1,405 1.4
Competitivelocalexchange
carriers
95 184 58 82 36 3 458 0.9
Alternativeprovidersof
longdistanceservice
31 142 24 14 27 2 240 0.2
VoIPservices 72 68 43 47 20 250 0.2
Paytelephoneservices 21 33 11 6 1 5 77 10.4
Total 10,578 5,606 2,005 1,575 1,459 350 21,573
Source:CRTCdatacollection
226
Section5.1CMR2016
Table5.1.5SummaryofissuesraisedintelecommunicationscomplaintshandledbytheCCTS(20142015)
227
Section5.2CMR2016
5.2 Wirelinevoiceretailsector
229
Section5.2CMR2016
Over150companiesprovidelocalandlongdistanceservicesacrossCanada.In2015,theretailwirelinevoice
sectorreported$8.5billioninrevenues,82%ofwhichwasfromlocaltelephoneservicesand18%fromlong
distanceservices.Revenuesfromwirelinevoiceservicesdecreased$543million,or6.0%,fromtheprevious
year.Thisdeclineisalmostequallysharedbetweenlocal(54%)andlongdistance(46%)revenues.
Cablebasedcarriersaccountforover30%ofalllocalandlongdistanceresidentialrevenues.Cablebased
carriersaregaininggroundonthebusinessservicesfrontwithrevenuesincreasingfrom$310millionto$317
millioninthelastyear.
TheCanadianwirelinesectorcontinuestofacepressurefromtechnologicalsubstitutionandagrowing
demandforwirelessservices.Steadylossesinthewirelinevoiceretailsectorcontinuedin2015asproviders
reportednearly800,000inlinereductions.Conversely,thewirelessretailsectorgainedapproximately1
millionnewsubscribersforthesameyear.
ThearrivalofVoiceoverInternetProtocol(VoIP)servicesopenedthewirelinevoicemarketsectortonew
nontraditionalproviders.AccessindependentVoIPprovidersusebroadbandInternettoprovidelocal
telephoneservicethatissimilartotraditionaltelephoneserviceatafractionofthecosttosubscribers.The
numberofCanadianssubscribingtoaccessindependentVoIPnowrepresentsover625,000subscribersor
approximately4%ofallretaillocaltelephoneline.
Monthlysubscriptiontolocaltelephoneservicetypicallyincludesunlimitedlocalcallingwithinaspecific
geographicarea,emergencycalling(911),messagerelayservices,accesstolongdistanceanddialup
Internetservices.Optionaladdonservicesorfeaturesincludecalldisplay,callforwarding,andconference
calling.Longdistanceserviceprovidesvoicecommunicationbetweentwodifferentlocalcallingareasandis
generallybilledonaperminuteusagebasis.
230
Section5.2CMR2016
i Revenues
Table5.2.1Localandlongdistanceretailrevenues($millions)
Growth
CAGR(%)
Category 2011 2012 2013 2014 2015 (%)
20112015
20142015
Totalretaillocalrevenues 8,106 7,821 7,661 7,441 7,146 4.0 3.1
Less:Subsidyreceived 157 132 118 108 107 0.8 9.1
Netlocalservicerevenues 7,949 7,690 7,544 7,333 7,039 4.0 3.0
Longdistanceretail
2,408 2,134 1,949 1,755 1,506 14.2 11.1
revenues
Localandlongdistance
10,357 9,824 9,493 9,088 8,545 6.0 4.7
retailrevenues
Source:CRTCdatacollection
Totalretaillocalrevenuesincluderevenuesfromlocaltelephoneserviceprovidedtoresidentialandbusiness
customers.Itincludesrevenuesfromcallingfeaturessuchascalldisplay,andcallforwarding,aswellas
installationandrepair,andexcludesrevenuesfromthesaleandrentaloftelephonesets.
Basiclocaltelephoneservicewithaccesstolongdistanceserviceispartofthebasicserviceobjective.The
obligationtoserveandthebasicserviceobjectiveareregulatorymeasuresimposedonincumbentlocal
telephonecompanies.Tothisend,thesecompaniesreceiveasubsidyfromanationalcontributionfundin
whichalltelephoneserviceprovidersarerequiredtoparticipate.Thesesubsidiesareexcludedinthe
remainingtablesandfiguresofthissection.
Localretailrevenuesrepresentapproximately80%ofalllocalandlongdistanceretailrevenues.
231
Section5.2CMR2016
Table5.2.2Residentiallocaltelephoneandlongdistanceserviceretailrevenues,bytypeofTSP($millions)
Thistabledisplaysrevenuesandannualrevenuegrowthratesfromresidentiallocalandlongdistance
services,bytypeofprovider,fortheyears2011to2015.Theannualgrowthratesindicatethatresidential
revenuesfrombothlocalandlongdistanceservicesareindeclineforalltypesofserviceprovidersexcept
cablebasedcarriersandtoalesserextenttheotheralternativeserviceproviders.Thesecarriershave
increasedtheirrevenuesfromlocaltelephoneserviceandhavethelowestdeclineinrevenuesfromlong
distanceservices.
Notethatrevenuesfromlocaltelephoneservicesareincreasinglyexceedingthosefromlongdistanceservice.
232
Section5.2CMR2016
Table5.2.3Businesslocaltelephoneandlongdistanceretailrevenues,bytypeofTSP($millions)
Thistabledisplaysrevenuesandannualrevenuegrowthratesfrombusinesslocalandlongdistanceservices,
bytypeofprovider,fortheyears2011to2015.Similartotheresidentialmarket,thebusinessmarketisin
decline,butataslowerrate.Canadianbusinessesappeartobemovingtoalternativeandcablebasedservice
providersasbothofthesetypesofprovidersareexperiencinggrowthinthelocalmarket.
Table5.2.4Longdistanceretailrevenuesbytypeofproviderandsize($millions)
Growth(%) CAGR(%)
Size Typeofprovider 2011 2012 2013 2014 2015
20142015 20112015
IncumbentTSPs 1,598 1,444 1,311 1,216 1,017 16.4 10.7
Telecomrevenues AlternativeTSPs 78 68 56 45 34 24.4 18.7
over$100million CablebasedTSPs 345 272 257 228 188 17.5 14.1
Subtotal 2,021 1,783 1,624 1,488 1,239 16.7 11.5
Telecomrevenues
between
Allproviders 292 268 251 196 191 2.7 10.1
$100millionand
10million
Telecomrevenues
Allproviders 95 83 74 70 77 9.6 5.2
below$10million
Total Allproviders 2,408 2,134 1,949 1,755 1,506 14.2 11.1
Source:CRTCdatacollection
Thistabledisplayslongdistancerevenuesandannualrevenuegrowth,bytypeofserviceproviderandsize,as
measuredbytheirtotalCanadiantelecommunicationsrevenues.Asagroup,TSPswithtelecommunications
revenuesover$100millioncapturednearly80%oftherevenuesfromlongdistanceservices,whileTSPswith
telecommunicationsrevenueslessthan$100millioncaptured20%oftherevenuesfromlongdistance
services.Thesesmallerserviceprovidersgenerallyoperateinrelativelysmallnichemarketscateringtothe
needsofspecificconsumers,suchasprepaidphonecardusers.
233
Section5.2CMR2016
ii Subscriberdata
Localtelephoneservicesubscriberdataisrepresentedbythenumberoftelephonelines,whileminutesare
usedforlongdistance.
Thissectioncategorizeslocaltelephonelinesintotwotypes:managedandnonmanaged.Amanagedline
referstotelephoneservicewhichusesalocalserviceprovidersnetwork,andtheproviderhascontrolover
callquality.AnonmanagedlinereferstotelephoneservicethatisprovidedusingthepublicInternet,with
thelocalserviceproviderhavinglesscontroloverthequalityofservice.Thistypeoflocalserviceisreferred
toasaccessindependentVoIP.
Table5.2.5Numberofretailmanagedandnonmanagedlocaltelephonelines(thousands)
Growth(%) CAGR(%)
Typeofline 2011 2012 2013 2014 2015
20142015 20112015
Managedlocaltelephonelines 17,869 16,866 16,251 15,710 14,986 4.6 4.3
Nonmanagedlocaltelephone
linesAccessindependent 404 861 670 694 626 9.8 11.6
lines
TotalManagedandnon
18,274 17,726 16,921 16,403 15,612 4.8 3.9
managedlocaltelephonelines
Source:CRTCdatacollection
Thenumberofmanagedlocaltelephonelineshasdecreasedfrom17.9millionlinesin2011to15millionlines
in2015;whereasthenumberofnonmanagedlocallineshasincreasedfrom404thousandin2011to626
thousandin2015.Managedlocaltelephonelinescountfor96%oftotaltelephonelines.Thetotalnumberof
telephonelinesremainedinastateofdecline.
234
Section5.2CMR2016
Table5.2.6ResidentialandbusinesslocaltelephonelinesbytypeofTSP(thousands)
Growth(%) CAGR(%)
TypeofTSP Typeofline 2011 2012 2013 2014 2015
20142015 20112015
Residential 7,577 6,975 6,442 5,981 5,566 6.9 7.4
IncumbentTSPs Business 5,350 5,084 4,890 4,670 4,335 7.2 5.1
Total 12,927 12,059 11,332 10,650 9,901 7.0 6.4
AlternativeTSPs Residential 646 723 482 711 798 12.2 5.4
(excludingcable Business 225 264 261 224 233 4.0 0.9
basedcarriers) Total 871 987 743 935 1,031 29.4 8.6
Residential 4,061 4,258 4,314 4,247 4,031 5.1 0.2
Cablebased
Business 414 422 531 571 649 13.7 11.9
carriers
Total 4,476 4,681 4,846 4,818 4,681 2.9 1.1
Residential 12,284 11,956 11,238 10,939 10,395 5.0 4.1
AllTSPs Business 5,989 5,770 5,683 5,465 5,217 4.5 3.4
Total 18,274 17,726 16,921 16,403 15,612 4.8 3.9
Source:CRTCdatacollection
Thistablepresentsthenumberofresidentialandbusinesstelephonelines,bytypeofserviceprovider,and
theirrespectiveannualgrowthrates.Thetotalnumberoftelephonelineshasdeclinedinboththeresidential
andbusinessmarkets.However,thenumberofresidentialtelephonelineshavedeclinedmorequicklythan
thoseofbusiness.
TheuseofVoIPservicesintheresidentialandbusinessmarketsvariessignificantly.Ontheonehand,cable
basedcarriersprovidelocaltelephoneservicemostlytoresidentialcustomersovertheirmanaged
networkusingaccessdependentVoIPtechnology.Theyleverageexistingcableinfrastructuretoprovidelocal
telephoneserviceviatheircablenetworkstotheirconsumers.Asaresult,thesecarriersarethelargest
competitortothetraditionaltelephonecompaniesintheresidentialmarket.Over38%ofhouseholds
subscribetolocaltelephoneservicefromacablebasedcarrier.
235
Section5.2CMR2016
Figure5.2.1RetailVoIPlocallines,accessdependentandaccessindependent,bymarket
RetailVoIPlocallines,bymarket
5
4.3 4.3
4
Numberoflines(millions)
0.9
1 0.6 0.7 0.6
0.1 0.1
0
Residential Business Residential Business
2014 2015
VoIPAccessdependent VoIPAccessindependent
Source:CRTCdatacollection
In2015,therewere5.2millionaccessdependentlines,comparedto0.6millionaccessindependentVoIP
connections.
236
Section5.2CMR2016
iii Performanceindicators
Table5.2.7Localandlongdistanceretailmonthlyrevenues($),perline
Growth(%) CAGR(%)
Typeofline 2011 2012 2013 2014 2015
20142015 20112015
Residential 41.52 40.16 39.25 39.22 37.25 5.0 2.7
Business 58.49 56.46 58.66 57.84 58.29 0.8 0.1
Source:CRTCdatacollection
Table5.2.8Longdistanceretailmonthlyrevenues($),perline
Growth(%) CAGR(%)
Typeofline 2011 2012 2013 2014 2015
20142015 20112015
Residential 10.74 9.79 8.72 7.85 6.92 11.9 10.4
Business 11.30 10.08 10.71 10.63 9.56 10.1 4.1
Source:CRTCdatacollection
Monthlyrevenueperlineiscalculatedby(i)dividingtheannualservicerevenuesbytheaverage
numberoflocallinesintheyear,andthen(ii)dividingtheresultby12.Theaveragenumberoflines
isdeterminedbydividingthesumofthenumberoflinesatthebeginningoftheyearandattheend
oftheyearbytwo.
Table5.2.9Localtelephoneretailservicemonthlyrevenues($)perline,bytypeofTSP
Growth(%) CAGR(%)
Typeofline TypeofTSP 2011 2012 2013 2014 2015
20142015 20112015
IncumbentTSPs 33.25 33.47 33.49 34.33 34.68 1.0 1.1
AlternativeTSPs
Residential (excludingcablebased 25.14 22.90 22.72 30.12 18.33 39.1 7.6
localservice carriers)
Cablebasedcarriers 26.74 26.18 26.99 27.24 27.12 0.4 0.4
Totalresidential 30.78 30.37 30.53 31.37 30.59 2.5 0.2
IncumbentTSPs 47.81 47.44 48.61 48.48 49.45 2.0 0.8
AlternativeTSPs
Businesslocal (excludingcablebased 37.13 31.54 44.86 41.02 65.71 60.2 15.3
service carriers)
Cablebasedcarriers 43.48 41.86 43.16 39.04 37.08 5.0 3.9
Totalbusiness 47.20 46.39 47.95 47.23 48.73 3.2 0.8
Source:CRTCdatacollection
Averagemonthlyrevenuesperlinehavebeenessentiallyconstantfrom2011to2015forboththeresidential
andbusinessmarkets,exceptforAlternativeTSPswhichhaveexperiencedsomefluctuationsbetween2013
and2015.
237
Section5.2CMR2016
Table5.2.10Longdistanceretailrevenues($)perminute,bytypeofTSP
Growth(%) CAGR(%)
Typeofline TypeofTSP 2011 2012 2013 2014 2015
20142015 20112015
IncumbentTSPs 0.089 0.088 0.087 0.085 0.083 1.9 1.6
AlternativeTSPs
(excludingcable 0.049 0.051 0.047 0.043 0.040 5.9 4.7
Residential
basedcarriers)
localservice
Cablebased
0.043 0.042 0.043 0.043 0.043 0.4 0.1
carriers
Totalresidential 0.068 0.067 0.066 0.067 0.062 7.5 2.3
IncumbentTSPs 0.061 0.045 0.044 0.044 0.038 14.0 11.3
AlternativeTSPs
(excludingcable 0.036 0.038 0.044 0.040 0.069 72.8 17.7
Business
basedcarriers)
localservice
Cablebased
0.027 0.025 0.024 0.025 0.025 2.0 2.4
carriers
Totalbusiness 0.044 0.040 0.043 0.041 0.039 3.9 2.7
Source:CRTCdatacollection
Thistableshowstheaveragelongdistancerevenuesperminutefortheresidentialandbusinessmarketsby
typeofserviceprovider.Onaverage,residentialconsumerspaymoreforlongdistanceservicethanbusiness
customers.Inbothcases,longdistancepriceshavebeentrendingdownward.In2015,Canadianspaid6.2
centsperminutecomparedto3.9centsbybusinesscustomers.
Cablebasedcarriersgenerallyhadthelowestpriceperminuteinboththeresidentialandbusinessmarkets.
iv Price
Basiclocaltelephoneserviceincludesunlimitedcallingwithinageographicarea,911services,andmessage
relayservices,aswellasaccesstolongdistanceservices.Approximately11%ofhouseholdssubscribingto
wirelinelocalservicesubscribetobasicservice,whiletheremaining89%subscribetoadditionallocal
features,whichmaybebundledwithsuchotherservicesasInternet,television,orwireless.Thefigures
belowdisplaythepriceofbasiclocaltelephoneserviceonastandalonebasisinanumberofurbanandrural
centres.
238
Section5.2CMR2016
Urbancentres
Thebarchartsbelowdisplaytherangeofmonthlypricesofbasiclocalservicein24majorurbancentresin
Canada.Thebluebardisplaysthedifferencebetweenthelowestandthehighestprice.Thenumberin
bracketsalongthehorizontalrepresentsthenumberofproviderswithintheurbancentre.
Figure5.2.2Priceofbasiclocaltelephoneservice($/month)andnumberofcompaniesprovidingthisservicein
majorurbancentres,2015
Priceofbasiclocaltelephoneserviceinmajor
urbancentres,2015
Iqaluit(1) 33 33
Yellowknife(1) 32 32
Whitehorse(1) 32 32
St.John's(2) 27 30
Halifax(2) 28 31
Charlottetown(2) 28 31
Fredericton(2) 27 31
Qubec(2) 26 31
Montral(2) 23 35
Oshawa(2) 31 36
Windsor(2) 31 37
St.CatharinesNiagara(2) 31 37
KitchenerWaterloo(2) 31 36
London(2) 31 36
Hamilton(3) 22 37
OttawaGatineau(3) 26 36
Toronto(2) 31 36
Winnipeg(2) 29 30
Regina(2) 22 30
Saskatoon(2) 22 30
Edmonton(2) 30 36
Calgary(2) 30 35
Victoria(2) 30 36
Vancouver(2) 30 36
20 25 30 35 40
Price($/month)
Variancebetweenhighandlowprice
centres
Source:CRTCdatacollection
Thepriceofbasiclocalservicevariedacrossthemajorurbancentresfrom$22permonthinSaskatoon,
ReginaandHamiltonto$37inHamilton,WindsorandSt.CatharinesNiagara.Insomecases,service
providersdidnotprovidethepriceofbasiclocaltelephoneservice.Thesecompaniesprovidedthepriceforthe
servicethatcameclosesttothedefinition.AccessindependentVoIP,notincludedabove,isavailableinmany
majorurbancentres.
239
Section5.2CMR2016
Ruralcommunities
Figure5.2.3Priceofbasiclocaltelephoneservice($/month)andnumberofcompaniesprovidingthisservicein
urbanandruralcommunities,byprovinceandterritory,2015
Priceofbasiclocaltelephoneserviceinurban
andruralcommunities,2015
Nvt.Urban(1) 33 33
Nvt.Rural(1) 33 33
N.W.TUrban(1) 32 32
N.W.TRural(1) 33 33
Y.T.Urban(1) 32 32
Y.T.Rural(1) 33 33
N.L.Urban(2) 27 30
N.L.Rural(1) 28 31
N.S.Urban(2) 23 30
N.S.Rural(1) 31 31
P.E.IUrban(2) 28 31
P.E.IRural(2) 28 31
N.B.Urban(2) 27 31
N.B.Rural(1) 27 27
Que.Urban(2) 26 31
Que.Rural(12) 26 35
Ont.Urban(13) 26 36
Ont.Rural(12) 19 37
Man.Urban(2) 29 30
Man.Rural(1) 29 30
Sask.Urban(2) 22 30
Sask.Rural(1) 32 32
Alta.Urban(2) 30 36
Alta.Rural(1) 36 36
B.C.Urban(2) 30 36
B.C.Rural(1) 35 36
15 20 25 30 35 40
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
Thisbarchartdisplaystherangeofmonthlypriceofbasiclocaltelephoneserviceinfiftyfourrural
communitiesinCanada.Thenumberappearinginparenthesesalongtheverticalaxisafterthenameofeach
provinceandterritoryindicatestherangeinthenumberofbasiclocaltelephoneserviceprovidersineach
ruralcentreorcommunityrespondingtothesurvey.Thepriceofbasiclocaltelephoneserviceinrural
communitiesvaried,fromlowsofbetween$19to$35permonthtohighsofbetween$27and$37permonth.
Insomecases,serviceprovidersdidnotprovidebasiclocaltelephoneservice.Thesecompaniesprovidedthe
pricefortheservicethatcameclosesttothedefinitionofbasiclocaltelephoneserviceasdefinedinthe
survey.
240
Section5.2CMR2016
Whichruralcommunitieswereincluded?Fiftyfourruralcommunitieswereselectedtoassessthe
priceoflocaltelephoneservices(seeAppendix9).Thesecommunitiesmetthefollowingcriteria:
thecommunitywasnotpartofoneofthecensusmetropolitanareasofthe24urban
centres;
thecommunityhadapopulationdensityoffewerthan400peoplepersquarekilometre,or
itspopulationcentrehadfewerthan1,000people;
thenumberofcommunitiesselectedineachprovince/territorywasproportionaltothe
populationoftheprovince/territory;and
thecommunitieswerenotclusteredtogether.
v Typeoflocalfacilities
Leasedlinesarelinesacquiredfromfacilitiesbasedcarriers.Resoldlinesconnectdirectlyfromtheunderlying
facilitiesbasedcarriersnetworktoacustomer.
Figure5.2.4AlternativeTSPandcablebasedcarrierslocalretaillines,bytypeoffacility
AlternativeTSPandcablebasedcarrierslocalretaillines
3
(millions)
241
Section5.2CMR2016
Figure5.2.5Percentageoflocallinesbytypeofline,2015
Percentageoflocallines,bytypeofline,2015
Unmanagedlines,
4.0%
Managedlines
(unbundledloop),
1.5%
Remaining
managedlines,
94.5%
Source:CRTCdatacollection
Notallunbundledloopsareusedforvoicecommunication,butforpurposesofthisfigure,theyareincluded.
ThepredominantmeansofcompetitionisviacablefacilitiesorVoIP.
vi Competitivelandscape
Traditionally,largeincumbentTSPswerethesoleprovidersoflongdistanceservicesinCanada.Withthe
introductionoflongdistancecompetitionin1992,otherserviceprovidersenteredthemarket.
Table5.2.11LargeincumbentTSPsretaillongdistancerevenuemarketshare(%),byregion
ThistableshowsthepercentageofretaillongdistancerevenuescapturedbythelargeincumbentTSPs.The
NorthincludesYukon,theNorthwestTerritories,andNunavut.
242
Section5.2CMR2016
vii Paytelephoneservice
LargeincumbentTSPscontinuetobetheprimaryprovidersofpayphoneserviceacrossCanada.
Table5.2.12LargeincumbentTSPspayphonerevenues($)
Growth(%) CAGR(%)
Metric 2012 2013 2014 2015
20142015 20122015
Annualrevenueperpayphone 682 559 462 413 10.6 15.4
Source:CRTCdatacollection
Table5.2.13LargeincumbentTSPspayphonequantities
Asof2015,nopayphoneswerereportedtobeequippedwithInternetcapability.
243
Section5.2CMR2016
244
Section5.3CMR2016
5.3 RetailInternetsectorandbroadbandavailability
245
Section5.3CMR2016
Approximately98%ofCanadianhouseholdscanaccessadownloadspeedofatleast5Mbps,whichis
sufficientforstreaminghighqualityaudioandvideocontent.ThevastmajorityofCanadians(96%)can
accessthisspeedusingeitherlandlineorfixedwirelessfacilities,andanadditional1.5%maygetaccessvia
satellitefacilities.EightypercentofCanadianhouseholdssubscribetoserviceswithdownloadspeedsof
5Mbpsorhigher.Whentakingintoaccountanuploadspeedof1Mbps,availabilityof5Mbpsorhigher
internetservicesdeclinesto95%8(93%excludingsatellite),with70%ofCanadianhouseholdssubscribing.
Atthesametime,Canadiansaredemandingmorebandwidthfrombroadbandserviceproviders.Theaverage
monthlyamountofdatadownloadedbyresidentialsubscribersincreased40%between2014and2015to
93.0GBpermonth,andanaverageof50.4%annuallyoverthelast5years,indicatingthatCanadiansare
likelyusingmorevideocontentandotherhighbandwidthconsumingservices.Averageuploadamountsalso
increased26.8%in2015,reachinganaverageof10.9GBpermonth.
TheadvertisedservicespeedsoftheplansthatarebeingusedbyCanadianshavealsoincreased,with
subscriptionstoplansincludingservicespeedsof50Mbpsandhighergoingfromjust0.3%ofresidential
highspeedsubscriptionsin2011to19.2%in2015.Plansincludingservicespeedsof5to9Mbpsdeclined
from45.6%in2011to23.4%in2015.
FixedwirelessservicesareamajorsourceofbroadbandInternetconnectivityinruralareas,since33%of
ruralhouseholdshaveaccesstobroadbandInternetviafixedwirelessservices,butnotfibre,cable,orDSL.
Whilesatellitecoverageisnationwide,capacitylimitationsrestrictpracticalbroadbandInternetservice
availabilitytoapproximately1.5%ofallCanadianhouseholds.AdditionalcoverageisavailableviaLTEand
HSPA+networks,althoughdataallowancesmaydifferfromsatelliteandwirelinebroadband.Formore
informationonthewirelesssector,seesection5.5.
In2015,Internetservicerevenuesincreased9.9%from$8.4billionin2014to$9.2billion;80%ofthese
revenues($7.4billion)camefromresidentialsourcesand20%($1.8billion)camefrombusinesssources.
Internetserviceswereprovidedbyover500ISPs,consistingoftraditionaltelephoneandcablecompanies,
fixedwirelessserviceproviders,andresellers.TherevenuemarketshareforInternetaccessforthetop5
companies(Bell,Shaw,Rogers,TELUS,andVideotron)declinedfrom74%in2014to73%in2015.Thecable
basedcarriersrevenuemarketsharedeclinedto47%in2015from49%in2014,whiletheincumbentTSPs
revenuemarketshareslightlyincreasedfrom37.6%to38.1%.ResidentialhighspeedInternetservice
subscriptionsprovidedthroughwholesaleDSLandcablehavemorethandoubledsince2011.Thereareover
300facilitiesbasedserviceproviders,andover200companiesofferingresidentialhighspeedInternet
servicessolelythroughtheuseofresalefacilitiesprovidedbytheincumbentTSPsandthecablebased
carriers.
8TakingintoaccountmobileLTEtechnology,99.5%ofhouseholdshaveaccessto5Mbpsdownloadand1Mbps
upload.
246
Section5.3CMR2016
Industrychurnrates9variedin2015.ForresidentialhighspeedInternetaccessservicesubscriptions,therate
wentupslightlyoverlastyear,from1.79%to1.80%,whileforbusinesssubscriptions,theratewentupmore,
from1.36%to1.47%.
Unlessotherwisenoted,broadbandInternetserviceavailabilityfiguresexcludewirelessmobiletechnology.
Satelliteaccessservicesinthissectionrefertodirecttohomesatellite,andnottothetechnologyusedto
connectcommunitiestotheInternet.
Broadbandspeedtargets:InTelecomRegulatoryPolicy2011291,theCommissionsetatargetthat
allCanadiansshouldhaveaccesstobroadbandservicespeedsofatleast5Mbpsdownstreamand1
Mbpsupstream,throughavarietyoftechnologies,bytheendof2015.Asof31December2015,itis
estimatedthatthisservicewasavailableto99.5%ofCanadianhouseholdsusingavarietyof
technologies,includingLTEandsatellite.Thisnumberis93%whenexcludingmobileandsatellite
technologies.
9
ChurnratesarebasedoninformationreportedbylargerISPs,whichmakeupapproximately88%ofthetotal
residentialhighspeedsubscriptionsand80%ofthebusinesshighspeedsubscriptionsasof2015.
247
Section5.3CMR2016
i Revenues
Table5.3.1RetailInternetservicerevenues($millions)
Growth(%) CAGR(%)
Type Subtype 2011 2012 2013 2014 2015
20142015 20112015
Access 4,923 5,369 5,938 6,554 7,224 10.2 10.1
Applications,equipment,and
Residential 267 209 160 162 210 29.8 5.9
otherInternetrelatedservices
Total 5,190 5,577 6,098 6,716 7,434 10.7 9.4
AccessandTransport 1,194 1,202 1,243 1,320 1,435 8.7 4.7
Applications,equipment,and
Business 407 416 384 378 380 0.7 1.7
otherInternetrelatedservices
Total 1,601 1,619 1,626 1,698 1,815 6.9 3.2
All Total 6,791 7,196 7,725 8,414 9,249 9.9 8.0
Source:CRTCdatacollection
ThistablepresentsanoverviewofrevenuesfromresidentialandbusinessInternetaccessservices,aswellas
otherrelatedservices.ResidentialInternetservicerevenueshaveincreasedfasterthanbusinessservice
revenues,9.4%vs.3.2%,respectively,overthe2011to2015period.
ThetypesofInternetservicesavailablevaryaccordingtothedownloadspeedoftheInternet
connection.Thelowestdownloadspeedcomeswithdialupservice,at64Kbps.Highspeedservices
refertoservicesprovidedincludingdownloadspeedsgreaterthan256Kbps.Broadbandserviceis
definedasanyserviceincludinga1.5Mbpsorgreaterdownloadspeed.Businesstransportrefers
tothetransferofInternettrafficbetweennetworks.Thisisgenerallyusedbylargebusiness
customers.
Table5.3.2ResidentialInternetaccessservicerevenues,bytypeofservice($millions)
Growth(%) CAGR(%)
Type 2011 2012 2013 2014 2015
20142015 20112015
IncumbentTSPs 1,779 1,891 2,156 2,442 2,760 13.0 11.6
Cablebasedcarriers 2,811 3,065 3,293 3,477 3,651 5.0 6.7
Otherserviceproviders 332 412 489 636 814 28.0 25.1
Total 4,923 5,369 5,938 6,554 7,224 10.2 10.1
Dialup(asapercentageof
1.4% 0.8% 0.5% 0.3% 0.2%
revenues)
Source:CRTCdatacollection
248
Section5.3CMR2016
Table5.3.3BusinessInternetaccessandtransportservicerevenues,bytypeofservice($millions)
CAGR(%)
Type Subtype 2011 2012 2013 2014 2015
20112015
IncumbentTSPs 562 579 581 591 659 4.1
Cablebasedcarriers 309 273 306 350 421 8.1
Internetaccess Resellers,utilitytelcos,
272 285 285 307 316 3.8
andothercarriers
Total 1,142 1,138 1,171 1,248 1,396 5.1
Transport Total 52 65 71 72 39 7.1
TotalbusinessInternet
Total 1,194 1,202 1,243 1,320 1,435 4.7
servicerevenues
Source:CRTCdatacollection
Overthe2011to2015period,revenuesfromthebusinessInternetaccessservicemarketincreased5.1%
annually.
Duetoachangeincompanyreporting,transportrevenuesin2015arenotcomparabletothoseinprevious
years.
Partoftheincreaseincablebasedcarriersrevenuesisduetoareclassificationofrevenues.
ii Subscriberdata
ResidentialInternetservicesubscribersreceiveInternetservicefromavarietyofserviceproviders.In2015,
residentialsubscribersreached12million,a3.3%increasefrom2014.
Table5.3.4ResidentialInternetservicesubscribers,bytypeofserviceprovider(thousands)
Growth(%) CAGR(%)
Typeofservice 2011 2012 2013 2014 2015
20142015 20112015
IncumbentTSPs 4,014 4,114 4,244 4,429 4,586 3.6 3.4
Cablebasedcarriers 5,846 5,930 5,933 5,954 5,986 0.5 0.6
Otherserviceproviders 811 947 1,074 1,247 1,447 16.0 15.6
Total 10,671 10,991 11,251 11,630 12,019 3.3 3.0
Dialup(asapercentage
2.3% 1.7% 1.1% 0.8% 0.7%
ofsubscribers)
Source:CRTCdatacollection
Internetsubscriptionhad3%averageannualgrowthsince2011.WhencomparedtoStatisticsCanadas
annualpopulationgrowthrates,therateofInternetservicesubscribergrowthwasapproximatelythreetimes
thatofpopulationgrowth.
249
Section5.3CMR2016
Figure5.3.1ResidentialInternetservicesubscribermarketshare,bytypeofserviceprovider(%)
ResidentialInternetservice ResidentialInternetservice
subscribermarketshare,2011 subscribermarketshare,2015
Otherserviceproviders, Otherservice
8% providers,12%
Incumbent
TSPs,38% Incumbent
TSPs,38%
Cablebased
Cablebased
carriers,55%
carriers,50%
Table5.3.5NumberofbusinessInternetaccesssubscriptions,bytypeofserviceprovider(thousands)
Growth(%) CAGR(%)
Type Subtype 2011 2012 2013 2014 2015
20142015 20112015
Dialup Total 72 61 54 47 43 7.8 12.2
IncumbentTSPs 471 463 487 504 538 6.6 3.4
CableBDUs 232 268 310 347 375 8.0 12.7
HighSpeed Resellers,utilitytelcos
152 150 170 179 185 3.5 5.0
andothercarriers
Total 855 881 966 1,030 1,098 6.5 6.4
Source:CRTCdatacollection
250
Section5.3CMR2016
Figure5.3.2HighspeedresidentialInternetservicesubscribers,byGBdatatransfer(upload/download)capacity
includedinsubscriptions
HighspeedresidentialInternetservicesubscribers,byGBtransfer
(upload/download)capacity
120
Percentageofhighspeedresidentialsubscriptions
100
97
93 94
80 89 88
84
75 75 78
60 69
61
58
40 50
44 45
39
20 29
26 23 25
21
15 17 13 12 12 14 18
0
20+ 60+ 100+ 160+ 300+ Unlimited
GBpermonthinplan
Source:CRTCdatacollection
Dataforthe300GBandhighercategoryisnotshownfor2011and2012.Planswithunlimiteduploadwere
countedbytheirdownloadlimit.
Datafortables5.3.6,5.3.8,5.3.9,5.3.10,5.3.11,5.3.12andfigure5.3.2arefromthelargerISPs,whichmake
upapproximately88%ofthetotalresidentialhighspeedsubscriptionsin2015.
Table5.3.6Weightedaverageuploadanddownloadusage(GBs)ofresidentialhighspeedInternetsubscribers
Growth(%) CAGR(%)
Usage 2011 2012 2013 2014 2015
20142015 20112015
Download 18.2 28.4 44.8 66.5 93.0 39.9 50.4
Upload 3.8 5.4 6.0 8.6 10.9 26.8 30.2
Total 22.0 33.8 50.8 75.1 104.0 38.4 47.4
Source:CRTCdatacollection
251
Section5.3CMR2016
iii Performanceindicators
Ingeneral,theaveragerevenueperuserforhighspeedInternetserviceshasbeenincreasing10.Whilesome
packageshaveexperiencedpricedeclines,thesedeclineshavebeenoffsetbymovementtowardslarger,
fasterpackages.
NotonlyareCanadianschoosingtosubscribetofasterinternetservices,theyarealsochoosingpackages
withmorecapacity.From2011to2015,theamountofgigabytesdownloadableintheaveragepackagehas
beenincreasingeveryyearexceptin2013.
Table5.3.7ResidentialInternetaccessserviceaveragerevenueperuserpermonth(ARPU),($)
Growth(%) CAGR(%)
TypeofTSP 2011 2012 2013 2014 2015
20142015 20112015
IncumbentTSPs 37.11 38.77 43.00 46.92 51.02 8.7 8.3
Cablebasedcarriers 40.75 43.39 46.27 48.75 50.96 4.5 5.7
Otherserviceproviders 35.52 39.09 40.32 45.64 50.35 10.3 9.1
Total 38.98 41.31 44.50 47.74 50.91 6.6 6.9
ARPUinthetableabovemayvaryfromtable5.3.8belowwhichutilisesdataonlyfromthelargerproviders,
whocomprise88%ofallhighspeedsubscriptions,anditiscalculatedbaseduponyearend,notthroughout
theyear.Thistablealsocontainsdatafromdialupservices.
Table5.3.8ResidentialInternetserviceonemonthaveragerevenue,byadvertiseddownloadspeed($)
Growth(%) CAGR(%)
Advertiseddownloadspeed 2011 2012 2013 2014 2015
20142015 20112015
Liteandwidebandupto256
33.86 35.97 35.36 36.00 27.06 24.8 5.5
Kbps
Wideband300to1400Kbps 33.03 35.83 35.49 33.80 38.02 12.5 3.6
1.5to4Mbps 32.87 41.87 31.45 48.05 52.11 8.4 12.2
5to9Mbps 40.97 44.05 46.10 46.87 48.37 3.2 4.2
10to15Mbps 42.11 40.62 48.17 48.52 53.59 10.4 6.2
16to49Mbps 50.76 44.85 58.69 51.96 55.35 6.5 2.2
50Mbpsandhigher 78.06 59.69 66.05 60.90 60.44 0.8 6.2
Alltiers 39.80 43.80 49.64 50.06 54.00 7.9 7.9
Source:CRTCdatacollection
Theonemonthaveragerevenuebydownstreamspeedwascalculatedbydividingtheserviceproviderstotal
onemonthrevenueineachspeedtierbythetotalnumberofsubscriberstotheserviceineachspeedtierin
thatmonth.ThemonthusedwasDecemberortheclosestavailablemonth.
10
Dataexcludesrevenuesfrommodemrentals.
252
Section5.3CMR2016
Table5.3.9Weightedaverageupload/downloadlimits(GBs)ofresidentialInternetserviceplans,byadvertised
downloadspeed
Theweightedaverageupload/downloadlimitwascalculatedforeachdownstreamspeedtierbasedonthe
numberofsubscriberstoplanswithupload/downloadlimits.
DuetoadditionalandmoreprecisedatafromtheindependentISPindustry,thedatain2015maynotbe
comparabletopreviousyears.Thisnewdataaccountsforapproximately5.5GBinthealltierscategory.
Table5.3.10ResidentialInternetserviceuploadspeed(Kbps)byadvertiseddownloadspeedandaverage
advertiseddownloadspeed
Theweightedaverageuploadspeedwascalculatedforeachadvertiseddownloadspeedtierbasedonthe
numberofsubscriberstotheplan.Theweightedaveragedownloadspeedwascalculatedbaseduponthe
numberofsubscriberstoeachplan.
iv Price
Approximately80%ofhouseholdssubscribedtoa5MbpsdownloadorhigherspeedbroadbandInternet
servicein2015,upfrom77%in2014.UrbanhouseholdsgenerallypaidlowerInternetservicepricesandhad
agreaternumberofInternetserviceproviderstochoosefromthanruralhouseholds.
Serviceproviderswereaskedtoreportthepriceoftheleastexpensiveservicetheyofferedthatprovidesa
downloadspeedofatleast5Mbps.Theinformationbelowisbasedupon23serviceproviders.Someservice
253
Section5.3CMR2016
providersofferedonlyoptionswithspeedsgreaterthan5Mbps,andthesewereincludedinthefollowing
figures.
Urbancentres
Figure5.3.3Priceofresidentialbroadband(5Mbps)Internetaccessserviceandnumberofcompaniesproviding
thisserviceinurbancentres,2015
Priceofresidentialbroadband(5Mbps)Internetaccessservicesinurban
centres,2015
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
Thisbarchartdisplaystherangeinthemonthlypriceof5MbpsInternetservicein24urbancentresin
Canada.Thenumberattheendofeachbaristhehighestprice.Thenumberinparenthesesalongthevertical
axisafterthenameofeachurbancentrerepresentsthenumberofISPsinthaturbancentre.Satelliteservice
isexcluded,butisavailableinallareasfor$70permonth.
254
Section5.3CMR2016
Thepriceof5MbpsInternetservicevariedfromlowsofbetween$25to$63permonth,andhighsofbetween
$43and$85permonth,exceptforservicesofferedinIqaluit.SubscribersinIqaluitpaid$180permonthfor
nonsatelliteInternetservice.
Subscriberslivinginprovincialurbancentresgenerallyhadachoiceofbetween3and9ISPs,whilethose
livinginterritorialurbancentreshadamorelimitedselection.
Datacaps,whichlimittheamountofdatathatcanbedownloadedpermonth,wereadifferentiatingfeature
amongtheserviceproviders.Lowdatauserswouldgenerallybenefitfromthesecaps,whileheavyusers
wouldnot.Ofthe17serviceprovidersthatlistedserviceinurbanareas,
3listedunlimitedservice;
10haddatacaps,whichrangedfrom10to300GB;and
4listeddatacapsinsomeareasbutnotinothers.
Ruralcommunities
AsdisplayedinFigure5.3.4,thepriceof5MbpsInternetservicewasgenerallyhigherinruralcommunities
thaninurbancentres,exceptinNewBrunswickandNunavut.
Thepriceof5MbpsInternetserviceinruralcommunitiesvariedfromlowsofbetween$25and$70per
month,andhighsofbetween$70and$93permonth.
Internetservicesubscriberslivinginruralcommunitiesgenerallyhadfewerserviceproviderstochoosefrom
thansubscriberslivinginurbancentres.Ofalltheruralareasexamined,themedianproviderchoicewas3,
withanaverageof3.1.Themedianforurbanareaswas7,withanaverageof5.3.
255
Section5.3CMR2016
Figure5.3.4Pricecomparisonofresidentialbroadband(5Mbps)Internetaccessserviceandnumberofcompanies
providingthisserviceinurbanandruralcommunities,2015
Pricecomparisonofresidentialbroadband(5Mbps)Internetaccessservice
inurbanandruralcommunities,2015
N.W.T.urban(1) 63 63
N.W.T.rural(2/2) 63 70
Y.T.urban(1) 63 63
Y.T.rural(2/2) 63 70
N.L.urban(4) 25 85
N.L.rural(3/4) 56 85
N.S.urban(4) 42 85
N.S.rural(3/3) 56 85
P.E.I.urban(4) 42 85
P.E.I.rural(4/4) 56 85
N.B.urban(4) 25 85
N.B.rural(4/5) 25 85
Que.urban(6/7) 30 43
Que.rural(4/5) 30 70
Ont.urban(7/9) 25 58
Ont.rural(3/5) 30 93
Man.urban(3) 25 73
Man.rural(1/2) 60 70
Saskurban(2/3) 25 73
Saskrural(2/3) 50 80
Alta.urban(7/7) 25 73
Alta.rural(2/3) 58 80
B.C.urban(7/7) 25 73
B.C.rural(2/3) 58 80
0 20 40 60 80 100 120 140 160 180 200
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
Thisbarchartdisplaystherangeinthemonthlypriceofbroadband(5Mbps)Internetaccessservicein54
ruralcommunitiesinCanada.Thenumberattheendofeachbaristhehighestprice.Thenumberin
parenthesesalongtheverticalaxisafterthenameofeachprovinceandterritoryrepresentstherangeinthe
numberofserviceprovidersamongtheruralcommunitiesorurbancentres.Forexample,BCrural(2/3)
256
Section5.3CMR2016
meansthatthenumberofserviceprovidersamongtheruralcommunitiesinBritishColumbiaincludedinthe
surveyvariedbetween2and3.
Satelliteserviceisexcludedinurbanareas,butisavailableinallareasfor$70permonth.
Whichruralcommunitieswereincluded?54ruralcommunitieswereselectedtoassessthepriceof
Internetaccessservices(seeAppendix9).Thesecommunitiesmetthefollowingcriteria:
thecommunitywasnotpartofoneofthecensusmetropolitanareasofthe24urban
centres;
thecommunityhadapopulationdensityoffewerthan400peoplepersquarekilometre,or
itspopulationcentrehadfewerthan1,000people;
thenumberofcommunitiesselectedineachprovince/territorywasproportionaltothe
populationoftheprovince/territory;and
thecommunitieswerenotclusteredtogether.
v Consumertrends
In2011,47.0%oftheISPshighspeedresidentialInternetaccessservicerevenueswerefromplanswith
downloadspeedsofbetween5and9Mbps.Planswithlowerspeedsyielded24.2%oftheirrevenues,while
planswithhigherspeedsgenerated28.9%.Fouryearslater,5to9Mbpsplansnolongeryieldthehighest
percentageofrevenues,therevenuesfromtheseplanshavingdeclinedto21.0%,whilerevenuesfromlower
speedplansdeclinedto3.5%,andrevenuesfromhigherspeedplansincreasedto75.5%.
Table5.3.11ResidentialInternetserviceonemonthrevenuedistribution(%),byadvertiseddownloadspeed
Alldataexcludeterminalrentalrevenues.Servicesarelistedwithoutregardtouploadspeeds.84.8%ofhigh
speedservicerevenuesstemfromservicesthatmeettheCommissionstargetspeedsof5Mbpsdownload
and1Mbpsupload,comparedto96.5%ofrevenuesfromservicesincludingatleast5Mbpsdownloadand
anyuploadspeed.
In2015,CanadianscontinuedtosubscribetohigherspeedInternetaccessservicesthanin2011.In2011,the
mostcommonplansincludeddownloadspeedsof5to9Mbps,representing45.6%ofallsubscriptions.Plans
withlowerspeedsmadeup29.3%ofallsubscriptions,andplanswithhigherspeedsrepresented25.1%of
subscriptions.Fouryearslater,the5to9Mbpsplansarenolongerthemostpopularplans.Thepercentage
257
Section5.3CMR2016
ofsubscriberstotheseplansdeclinedto23.4%.In2015,thepercentageofsubscriberstoplansincluding
speedslessthan5Mbpsdeclinedto3.9%whilethepercentageofsubscriberstoplansincludingspeeds
greaterthan9Mbpsgrewto72.7%.
Table5.3.12ResidentialInternetserviceonemonthsubscriberdistribution(%),byadvertiseddownloadspeed
Thistableindicatesthat,overtime,fasterspeedservicesmakeupmoresubscriptions.83.3%ofCanadian
householdssubscribetosomeformofhighspeedInternetservice.
83.9%ofhighspeedInternetservicesubscriberssubscribetoaservicethatmeetstheCommissionstarget
speedsof5Mbpsdownloadand1Mbpsupload,comparedto96.1%whosubscribetoaservicewithat
least5Mbpsdownloadandanyuploadspeed.
258
Section5.3CMR2016
vi Competitivelandscape
CanadianscanaccessbroadbandInternetservicesusingeitherwirelineorwirelessfacilities.Thesefacilities
supportevolvingservices,whichmakenewexperiencespossibleforCanadians,rangingfromtelevisionand
radioservices,tonewandhighlyinteractiveservicesandprogramsofferinggreaterconsumercontroland
choice.Consumerscanengagewiththedigitalworldusingtheirwirelessdevicesatthetimeandplaceof
theirchoice.
Figure5.3.5BroadbandsubscriptionsIncumbentTSPsvs.cablebasedcarriers(millions)
Broadbandsubscriptions
6 5.6
5 4.5
4.3
4.1
3.9
4 3.7
0
2011 2012 2013 2014 2015
IncumbentTSPbroadband Cablebasedcarrierbroadband
Source:CRTCdatacollection
259
Section5.3CMR2016
Figure5.3.6Internetaccessservicerevenueshares,bymarketandbytypeofserviceprovider,2015(%)
Internetaccessservicerevenue Internetaccessservicerevenueshares,
shares,residentialmarket businessmarket
Cablebased
Cablebased carriers
carriers 30%
51%
Remaining
Remaining alternative
alternative service
service providers
Incumbent providers Incumbent 23%
TSPs 11% TSPs
38% 47%
Source:CRTCdatacollection
Figure5.3.7BusinessInternetaccessservicerevenuesbyaccesstechnology,2011vs.2015(%)
BusinessInternetaccessservice BusinessInternetaccessservice
revenuesbyaccesstechnology, revenuesbyaccesstechnology,
2011(%) 2015(%)
Dialup Other Dialup
Other 8% 1%
2%
8%
Fibre
DSL 29%
DSL
Fibre 43% 38%
27%
Cable Cable
20% 24%
Source:CRTCdatacollection
BusinessInternetaccessservicerevenueisderivedfromservicesprovidedusingavarietyofaccess
technologies.TheOthersegmentreferstoothertechnologies,suchasfixedwirelessandsatellite
technologies.
260
Section5.3CMR2016
Figure5.3.8ResidentialInternetaccessservicesubscriptionsbyaccesstechnology,2011vs.2015
ResidentialInternetaccessservice ResidentialInternetaccessservice
subscriptionsbyaccess subscriptionsbyaccess
technology,2011(%) technology,2015(%)
Dialup
2% Fibre 1% Dialup Fibre 7%
1% Fixed
Fixed wireless
wirelessand and
satellite 3% satellite 4%
Cable
Cable
54%
56%
DSL 34%
DSL 38%
Source:CRTCdatacollection
Whatarefixedwirelessandsatelliteservices?Fixedwirelessservicesrefertotheuseofradio
spectrumtoprovidecommunicationsservicestosubscribers.Theconnectiontothesubscribers
premisesisfromatowerlocatedinthearea.
SatellitescanprovideInternetaccessservice11.Connectionsareestablishedbetweenanearth
stationontheground(usingequipmentsuchassatellitedishes)andasatelliteinspace.Satellites
cansupportvariousfrequencybands(Cband,Kuband,andKaband).
SatelliteInternetservicesdeliveredusingtheCbandrequirealargesatellitedishandaretypically
usedtoserveacommunity.Kaband,andtoalesserdegreeKuband,satelliteInternetservicescan
beofferedusingasmallsatellitedishlocatedatthecustomerspremises.
11
Onlydirecttohomeservicesarecountedassatelliteservicesinthissection.
261
Section5.3CMR2016
vii Capacityrequirements
ThissectionexaminestheextenttowhichCanadianshaveaccesstobroadbandInternetserviceandthe
associatedcapacityrequirements.
Fixedandmobilebroadbandservices[i.e.EvolvedHighSpeedPacketAccess(HSPA+)andLongTerm
Evolution(LTE)]areavailabletoover99%ofhouseholdsinCanada.Canadiansareaccessingthegrowing
volumesofcontent,whetheraudio,video,ordata,thatarebeingmadeavailableonline.Spurringthis
developmentistheadoptionbyCanadiansofadvancedhandhelddevices(e.g.smartphones,tablets).
ThereisavarietyofInternetserviceprovidersinoperationacrossCanadaprovidingbroadband12accessusing
acombinationofDSL,cablemodem,fibreoptic,satellite,andfixedwirelessfacilities.Theseservicesare
availableto98%ofCanadianhouseholdsnotincludingsatellite,andwithsatellitetheyareavailableto99%.
Wirelessserviceprovidersalsoprovidedbroadbandservice.AsdisplayedintheWirelessretailmarket
sectorsectionofthisreport,74%ofwirelessservicesubscribersin2015haddataplans.
BitRate
Thebitrateofastreamis,essentially,thenumberofbitstransmittedinaparticulartimeperiod.The
standardmeasurementforbitrateofstreamingservices,likeInternetaccesspackages,isinamultipleofbits
persecond.Here,weusemegabitspersecond(Mb/s),whichisonemillionbits(or125,000bytes)per
second.Themeasurementspresentedinthissectionshowsampleaveragebitratesofvariousstreaming
services.ThemeasurementswereperformedintheCRTCsTechnologyResourceCentreusingofftheshelf
consumerelectronics.Formoreinformationonthetestingenvironmentandmethodology,seeAppendix10.
Sincemanystreamingservicesusesimilarbitrates,theyhavebeensplitintosevenranges.Table5.3.13lists
theranges,theiraveragebitrate,adescriptionandexamplesofstreamingservicesineachrange.Some
streamingservicesareinmultiplerangesastheirbitrateisautomaticallyadjustedbasedonconnectiontype
(i.e.mobileorwireline)andspeed.Astreamsbandwidthcanbeadjustedbychangingitscompressionlevel
orcodec;thiscompressionlevelaffectsthebandwidth,andthusthenumberofsimultaneousstreamsthatan
Internetconnectioncanhandle.Formoreinformationonthesetopics,seeAppendix10.
Whereservicesdooffermultiplequalityoptions,theyhavebeenitemizedseparatelyinthetable.Some
servicesusequalitativenamesfortheirsettings(e.g.good,better,best),whileothersusetheresolutionand
videoframerate.Forexample,144pmeans144linesofverticalresolution,progressivescan.132160p60
means2160linesofverticalresolution(marketedas4K),at60framespersecond.14ThetermUltrahigh
definition(UHD)isusedtoencompassresolutionsgreaterthan1440p,specifically2160pand4320p(also
12
Broadbandservicesprovideadownloadspeedofatleast1.5Mbps.
13
Progressivescanningupdatestheentireimageatonce,asopposedtointerlacing,whichupdatesevenandodd
linesinanalternatingpattern.
14
Atypicalframerateformoviesandtelevisionis29.97fps(framespersecond),butmorecontentisshiftingto
higherframeratesof48fpsincinemaandtelevision,and60fpsforsomewebandstreamingcontent.
262
Section5.3CMR2016
knownas4Kand8K,respectively);thisisincontrastwiththecurrentHighDefinition(HD)standardwhich
includes720p,1080p,and1440p.
Duetothelimitednumberofsamplesandthediversityofnetworkconfigurationandequipment,the
reportedvaluesinthissectionshouldbeviewedasaveragecaseestimates,notworstcaselimits.Itis
importantforconsumerswithdatalimitedInternetplanstomonitortheirusageusingtoolsprovidedbythe
serviceprovider.Someoperatingsystemsalsoincludeorofferfordownloadusagemeasurementutilities,
whichcanbeusedtoestimatetheprovidersdatausagecalculation.
Table5.3.13Listofrangesfordatausagemeasurementcalculations
Average Averagedatausage
Download Description ExamplesofServicesandQualitySettings (gigabytes)perhourof
BitRate streaming
Streamingaudio, Streamingradio,Twitchaudioonly/mobile
mobilequality video,SkypeaudioandSDvideocalling,
0.00.5
streamingvideo, YouTube144p/240p 0.1GB/h
Mb/s
voiceandSDvideo
calling
Standarddefinition SkypeHDvideocalling,Netflix
0.52.0
streamingvideo, low/medium,ShomiGood,YouTube360p 0.6GB/h
Mb/s
HDvideocalling
LowbitrateHD CTV/Global/TSNGO,BellTV,CraveTV
2.03.5
streamingvideo (mobiledevices),ShomiBetter,YouTube 1.3GB/h
Mb/s
480p/720p,Twitchhigh
3.55.0 HighbitrateHD NetflixHD(mobiledevices),Twitchsource,
1.8GB/h
Mb/s streamingvideo YouTube720p60/1080p
5.010.0 Veryhighbitrate ShomiBest,CraveTV,YouTube1080p60,
3.0GB/h
Mb/s HDstreamingvideo NetflixHD
10.020.0 UHDstreaming NetflixUHD,YouTube1440p15
6.7GB/h
Mb/s video
Highframerate NetflixUHD(sometitles),YouTube
20.050.0
UHDstreaming 1440p60/2160p/2160p6015 12.4GB/h
Mb/s
video
Figure5.3.9showstheapproximateamountofdatausedperhourofstreamingforeachbitraterangelisted
inTable5.3.13.Thesenumbersmeasurethestreamwithoutanyauxiliarycontent(e.g.previews,menus,
trailers,advertisements),sotheactualamountofdatausedmaybegreaterthantheseestimates.
Asanexample,a30minuteSkypeHDvideocallwoulduseonaverageapproximately0.3GB.
15Although1440pisnotUHD,YouTubes1440pandhighervideosusemuchmoredatathanotherstreaming
services;thisislikelyduetothecodecsusedtotransmitthedata.SeeAppendix10formoredetails.
263
Section5.3CMR2016
Figure5.3.9Datausage(gigabytes)perhourofstreaming,perbitraterange
Datausage(gigabytes)perhourofstreaming
20.0 50.0Mb/s
12.4
(upto
10.0 20.0Mb/s 22.5)
6.7
5.0 10.0Mb/s
3.0
3.5 5.0Mb/s
1.8
2.0 3.5Mb/s
1.3
0.5 2.0Mb/s
0.6
0.0 0.5Mb/s
0.1
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gigabytesperhour(GB/h)
Combineddownloadandupload
StreamingonMobileDevices
WiththeproliferationofLTEdatanetworks,consumersarenowabletoreliablyusestreamingandrealtime
communicationapplicationsontheirmobiledevices.NotonlydoLTEnetworkshavemuchhigherbandwidth,
buttheyhaveconsistentlatency16regardlessofsignalstrength.
Whilesomestreamingservicesallowtheusertochooseaqualitysetting,manyautomaticallyreducethe
qualityiftheydetectthatthedestinationdeviceisonamobilenetwork.Thisautomaticadjustmentensures
thatusersdontprematurelyexhausttheirdataallowancebystreaminghighbandwidthcontent.Manyvideo
streamingservicesalsoprompttheuserforconfirmationthattheywishtousetheirmobiledata,ratherthan
connectingtoaWiFinetwork.
Manyapplicationswillreducevideoqualityonmobiledevicesregardlessofthetypeofnetworktheyre
connectedto.Sincemobiledevicesgenerallyhavesmallerscreensthantelevisions,bitratesaboveacertain
thresholdoffernegligiblequalityincreasesforanoftensignificantincreaseindatausage.Therefore,avideo
streamingservicesHDoptionmayhaveadifferentbitrateonamobiledevicethanonacomputeroraset
topstreamingdevice.
16Latencyisameasurementofthetimeittakesdatapacketstotravelfromtheirsourcetotheirdestination.
Highlatencyconnectionsmakerealtimecommunicationdifficultduetopausesinspeechandvideo.
264
Section5.3CMR2016
viii Keyindicators
BroadbandserviceavailabilityiscalculatedusinginformationprovidedbyISPs.Locationsareconsideredto
beservicediftheirdisseminationblockrepresentativepointfallswithinbroadbandservicecoverage.
Broadbandserviceavailabilitydatamaynottakeintoaccountcapacityissues,orissuesregardinglineof
sight.17
Table5.3.14Keytelecommunicationsavailabilityindicators(%ofhouseholds)
17Theinformationinthissectiondoesnottakeintoaccountuploadspeeds.
265
Section5.3CMR2016
Figure5.3.10Broadbandserviceavailabilityvs.subscriptionsbyprovince/territory,2015
Broadbandserviceavailabilityvs.subscriptionsbyprovince/territory,
2015
B.C. 97 2
87
Alta. 99 0
84
Sask. 91 9
74
Man. 98 2
77
Ont. 99 1
85
Que. 97 2
80
N.B. 97 3
86
N.S. 99.8 0
79
P.E.I. 93 7
85
N.L. 85 12
85
North 98 0
77
Canada 98 1
82
0 20 40 60 80 100
Percentage
Fixedbroadbandavailability HSPA+ Fixedbroadbandsubscriptions
Sources:Innovation,ScienceandEconomicDevelopmentCanada(ISED)andCRTCdatacollection
Theavailabilityandtakeupratesofbroadbandservicesvaryfromprovincetoprovince.TheprovincesofNew
BrunswickandSaskatchewanhavearrangementstoprovidebroadbandservicesviasatelliteundertermsand
conditionssimilartothoseforwirelineservices.IntheprovinceofPrinceEdwardIsland,HSPA+isavailableto
householdswithoutaccesstoothermeansofbroadbandservicesundertermsandconditionsequivalentto
thoseforwirelineservices.Thefixedbroadbandavailabilitydataexcludesatellitebroadbandservices,but
theseservicesareincludedinthefixedbroadbandsubscriptionsdata.TheHSPA+barshowstheeffectthat
inclusionofHSPA+technologywouldhaveonbroadbandavailability.
266
Section5.3CMR2016
Figure5.3.11Broadbandservice,5Mbpsavailability(%ofhouseholds)
Broadbandservice,5Mbpsavailability
(%ofhouseholds)
79%
DSL
78%
81%
Cablemodem
81%
20%
Fibre
22%
89%
WiredTotal
89%
94%
Wiredandfixedwirelesstotal
96%
93%
Mobile
97%
96%
Alltechnologies
99%
2014 2015
Source:CRTCdatacollection
Abroadbanddownloadspeedofatleast5Mbpsisavailableto98.6%ofCanadianhouseholdsthrougha
varietyofplatforms.ThisbargraphshowstheavailabilityratesofbroadbandserviceaccessthroughDSL,
cablemodem,fixedwireless,fibre,andmobiletechnologies,aswellastheavailabilityrateofalltechnologies
atthisspeed.Satelliteserviceisexcluded.
267
Section5.3CMR2016
ix Broadbandserviceavailability
BroadbandserviceavailabilitydiffersbetweenCanadasurbanandruralareas,particularlyintermsof
servicesthatofferfasterdownloadspeeds.
Figure5.3.12Broadbandserviceavailabilitybyspeed(%ofhouseholds)
Broadbandserviceavailabilitybyspeed(%ofhouseholds)
100
Availability(%ofhouseholds)
9797979798 96
80 919494 92 89 88
87
83848485 80828284 82 808183
788081 7679 787982
7577 75
60 71
60
40
35
20 28
0
1.54.9 59.9 1015.9 1624.9 2529.9 3049.9 5099.9 100+
Downloadspeed(Mbps)
2011 2012 2013 2014 2015
Sources:Innovation,ScienceandEconomicDevelopmentCanada(ISED)andCRTCdatacollection
TheavailabilityofbroadbandservicesathigherspeedshasbeenexpandinginCanada.Thisgraphexcludes
broadbandservicesprovidedthroughsatelliteandmobiletechnologies.
Increasesinspeedcategoriesatandabove50Mbpsin2015areinpartduetotheconsiderationoftheeffects
oflinebonding(usingmorethanonelinetoprovideservice)onDSL.
Table5.3.15Broadbandserviceavailabilityinruralareas,bydownloadspeedandnumberofplatforms(%of
households),2015
268
Section5.3CMR2016
ThetotalatthebottomofeachcolumnindicatesthepercentageofruralCanadianhouseholdsthatcan
accessthespeedsnotedforeachcolumn.Thistableexcludesbroadbandservicesprovidedthroughsatellite
technologies.
Table5.3.16Broadbandserviceavailability,byspeedandprovince/territory(%ofhouseholds),2015
1.54.9
59.9 25Mbps
1.54.9 Mbps 59.9 1015.9 1624.9
Province/territory Mbps or
Mbps with Mbps Mbps Mbps
withLTE higher
HSPA+
BritishColumbia 97 99 95 98 92 90 89
Alberta 99 99.9 99 99.8 95 94 93
Saskatchewan 91 99 85 91 76 61 59
Manitoba 98 99.7 95 96 85 74 74
Ontario 99 99.8 98 99.6 96 94 94
Quebec 97 99 96 98 91 86 86
NewBrunswick 97 99.7 96 99 94 94 94
NovaScotia 99.8 99.9 87 99 84 83 81
PrinceEdwardIsland 93 99.9 77 99.9 61 61 55
NewfoundlandandLabrador 85 97 81 93 69 69 60
Yukon 97 97 97 97 69 69 62
NorthwestTerritories 97 97 92 92 72 72 48
Nunavut 99.9 99.9 29 29 0 0 0
Sources:Innovation,ScienceandEconomicDevelopmentCanada(ISED)andCRTCdatacollection
Notallprovinces/territorieshavethesameaccesstobroadbandservices.Thistableshowstheregional
availabilitybybroadbandtechnology,byprovinceandterritory,in2015.Theavailabilityofbroadband
servicesvaryfromprovincetoprovince.TheprovincesofNewBrunswickandSaskatchewanhave
arrangementstoprovidebroadbandservicesat1.5Mbpsviasatelliteundertermsandconditionssimilarto
thoseforwirelineservices.IntheprovinceofPrinceEdwardIsland,HSPA+isavailabletohouseholdswithout
accesstoothermeansofbroadbandservicesundertermsandconditionsequivalenttothoseforwireline
services.Sincesatelliteservicehasanationalfootprint,itisexcludedfromthistable.
269
Section5.3CMR2016
Figure5.3.13BroadbandserviceavailabilityUrbanvs.rural(%ofhouseholds),2015
Broadbandserviceavailability Urbanvs.rural(%ofhouseholds),2015
100
100100100 8 100100 99 100100 100 99 100 99 99 98 99 97
96
Availability(%ofhouseholds)
12 92 93 91
90 90
80 84
81 81
60 64
67
52 50
40
31 29
20 24
0
1.54.9 59.9 1015.9 1624.9 2529.9 3049.9 5099.9 100+
Downloadspeed(Mbps)
Largepopulationcentres Mediumpopulationcentres Smallpopulationcentres
Ruralareas HSPA+andLTE
Sources:Innovation,ScienceandEconomicDevelopmentCanada(ISED)andCRTCdatacollection
ThistableshowsthepercentageofCanadianhouseholdsinlarge,medium,andsmallpopulationcentres,as
wellasinruralareas,thatcanaccessvariousbroadbandservices.
Smallpopulationcentresareconsideredtohavepopulationsofbetween1,000and29,000.Medium
populationcentresareconsideredtohavepopulationsofbetween30,000and99,999.Largepopulation
centresareconsideredtohavepopulationsgreaterthan100,000.Ruralareashavepopulationsoflessthan
1,000,orfewerthan400peoplepersquarekilometre.
TheHSPA+andLTEbarsshowtheadditionaleffectthatinclusionofthesetechnologieswouldhaveonthe
respectivecategories.
Satelliteservicesareexcludedastheyhaveanationalfootprint.
270
Section5.3CMR2016
Table5.3.17AdoptionofvariousvideotechnologiesinCanada(%ofhouseholds)
ThistableshowstheratesofadoptionandgrowthofvariousvideotechnologiesamongCanadian
consumers.Overthepast5years,thepopularityofvideoandtelevisionstreamingtopersonalelectronic
deviceshasgrowngreatly.
Figure5.3.14ISPsfoundontheCRTCsonlinesearchtoolYouhavechoicesbyprovince
ISPsfoundontheCRTC'sYouhavechoicestool,byprovince
3 3
18
18
18
26 144 Ont. Que. B.C.
29
Alta. Man. N.S.
32
Sask. P.E.I. N.B.
69
Source:YouHaveChoices
ThisfigureshowsthenumberofuniqueISPsprovidingresidentialInternetserviceineachprovincesCMA/CAs
intheYouhavechoicestool.
271
Section5.3CMR2016
272
Section5.4CMR2016
5.4 Dataandprivatelineretailsector
273
Section5.4CMR2016
DataandprivatelineservicesrefertothoseservicessoldbyTSPstobusinesscustomersforthetransmission
ofdata,video,and/orvoicetraffic.Thesecommunicationschannelsprovideprivate,highlysecure
communicationsbetweenlocations.
Canadianbusinesseswereservedbyapproximately191entitiesofferingdataandprivatelineservicesin
2015.Ofthese,incumbenttelecommunicationsserviceproviders(incumbentTSPsorincumbentproviders)
accountedforapproximately15%,andalternativeserviceproviders,suchascablebasedcarriers,utility
telcos,andresellers,accountedfortheremaining85%.
Dataservicesarepacketbasedservicesthatintelligentlyswitchdatathroughcarriernetworks.Theymake
useof(a)newdataprotocolssuchasEthernetandIP,or(b)legacyprotocolssuchasX.25,asynchronous
transfermode(ATM),andframerelaytotransmitdata.
TheseservicesareprovidedbybothincumbentTSPsandtheircompetition,withcompetitorshavingaround
29%ofthetotalmarket,includingnetworkmanagementandequipment.Notableistheincreaseovertime
intheactivityofcablebasedcarriersinthenewerprotocolspace.
Privatelineservicesprovideanonswitcheddedicatedcommunicationsconnectionbetweentwoormore
pointstotransportdata,video,and/orvoicetraffic.Theseservicesincludehighcapacitydigitaltransmission
servicesanddigitaldatasystems,aswellasvoicegradeandotheranalogsystems.Transmissionfacilities
includecopperwireandfibreopticcable.PrivatelineservicesmakeuseoftransmissionfacilitiessuchasOC
3fibreopticlines,DS1copperfacilities,etc.
Intheprivatelinespace,themarketisdominatedbytheincumbentTSPs.Ofthealternativeservice
providers,independentoperatorsarethelargestprovidercategory.
274
Section5.4CMR2016
i Revenues
Table5.4.1Dataandprivatelineretailrevenues($millions)
Growth(%) CAGR(%)
Category Subcategory 2011 2012 2013 2014 2015
20142015 20112015
Dataprotocols 1,832 1,893 1,917 1,952 1,919 1.7 1.2
Table5.4.2Retaildataservicerevenues,byclassificationofdataprotocolused($millions)
Growth(%) CAGR(%)
Category Subcategory 2011 2012 2013 2014 2015
20142015 20112015
Ethernet 479 483 483 465 456 1.9 1.2
IP 1,124 1,190 1,218 1,284 1,284 0.0 3.4
NewProtocols
Other 126 154 167 171 158 7.7 5.8
Total 1,729 1,826 1,868 1,920 1,898 1.1 2.4
LegacyProtocols Total 104 67 49 32 21 34.8 32.8
Totaldataprotocols Total 1,832 1,893 1,917 1,952 1,919 1.7 1.2
Source:CRTCdatacollection
Thistableshowstheretaildataservicerevenuesrealizedbyserviceproviders.Thedataserviceswere
classifiedasservicesmakinguseof(a)newdataprotocolssuchasEthernetandIPor(b)legacyprotocolssuch
asX.25,ATM,andframerelay.Thetablechartsgrowthintheserevenuesovertheperiodfrom2011to2015.
Table5.4.3Privatelineretailrevenues,bytypeofserviceprovider($millions)
Growth(%) CAGR(%)
Type Subtype 2011 2012 2013 2014 2015
20142015 20112015
IncumbentTSPs Total 670 652 683 634 604 4.6 2.6
Cablebasedcarriers 48 49 54 61 62 2.6 6.8
Alternative
Others 33 92 97 90 87 2.8 27.9
serviceproviders
Total 80 141 151 150 149 0.6 16.7
Totalprivateline Total 751 793 834 784 754 3.8 0.1
Source:CRTCdatacollection
275
Section5.4CMR2016
ii Competitivelandscape
AlthoughincumbentTSPsaccountedforonlyapproximately15%oftheentitiesprovidingdataandprivate
lineservices,theycaptured73%ofretailrevenues.Theremaining85%ofentitiesprovidingtheseservices,
consistingofcablebasedcarriers,othercarriers,andresellers,accountedfor27%ofretailrevenues.
Figure5.4.1Retaildataandprivatelinerevenuemarketshare(%),byTSP
Retaildataandprivatelinerevenue Retaildataandprivateline
marketshare(%),2011 revenuemarketshare(%),2015
Others, Others,
14% 16%
Cablebased
carriers,6% Cablebased
carriers,11%
Incumbent Incumbent
TSPs,81% TSPs,73%
Source:CRTCdatacollection
Duetoachangeincompanyreporting,IncumbentTSPswerereducedby1.5%marketsharein2015.
Figure5.4.2Retaildataservicerevenuemarketshare(%),byTSP
Retaildataservicerevenue Retaildataservicerevenue
marketshare(%),2011 marketshare(%),2015
Others,
16% Others,17%
Cable
based
carriers,
Cable
6%
based
carriers,
12%
Incumbent Incumbent
TSPs,78% TSPs,71%
Source:CRTCdatacollection
Duetoachangeincompanyreporting,IncumbentTSPswerereducedby2%marketsharein2015.
276
Section5.4CMR2016
Table5.4.4Retaildataservicerevenuemarketshare(%),byserviceproviderandbyclassificationofdataprotocol
used
Typeofservice Serviceprovider
Protocol 2011 2012 2013 2014 2015
provider subtype
IncumbentTSPs Total 72 67 66 66 66
Newdata Cablebasedcarriers 7 10 12 12 13
protocols Alternativeservice
Others 21 23 22 22 21
providers
Total 28 33 34 34 34
IncumbentTSPs Total 68 62 61 63 67
Legacydata
protocols Alternativeservice
Total 32 38 39 37 33
providers
IncumbentTSPs Total 72 67 66 66 66
Alldata
protocols Alternativeservice
Total 28 33 34 34 34
providers
Source:CRTCdatacollection
Thistableshowsthepercentageofretaildatarevenuesrealizedbyserviceprovidersthroughtheuseofnew
andlegacydataprotocols.
Table5.4.5Retailprivatelinerevenuemarketshare(%)
ThistableshowstherevenuesharesfortheincumbentTSPswhenprovidingservicetotheirbusiness
customers,bothwithinandoutsideoftheirtraditionalgeographicareas,andforalternativeserviceproviders
(i.e.cablebasedcarriers,utilitytelcos,andresellers),fortheyearsfrom2011to2015.IncumbentTSPs
continuetodominateinthisservicecategory.
277
Section5.4CMR2016
278
Section5.5CMR2016
5.5 Wirelessretailsector
279
Section5.5CMR2016
Thewirelessretailmarketremainedthelargestcommunicationsmarketsectorwithrevenuesof$22.5billion
andagrowthrateof7.5%or$1.6billionin2015.
CanadaswirelessnetworksenableCanadianstoaccessservicesthatarecomparabletowirelineservices.
Wirelessserviceproviders(WSPs)providevoice,data,Internet,andvideoservices.Thedifferentiatingfactors
fortheseservicestendtobemobilityandprice.BasedonMTMstatistics,thethreemostpopularactivitiesby
Canadiansmartphoneownersweretextmessages,Internetaccess,andemail.
Wirelessnetworkscoverapproximately20%ofCanadasgeographiclandmassandreach99%ofCanadians.
Theadvancedwirelessnetworkthatsupportshandsets,suchassmartphones,tablets,andturbosticks,isalso
availableto99.3%ofCanadians.Thelongtermevolution(LTE)network,whichdeliversevenhigherspeeds
thanpreviousgenerationnetworks,isavailabletoapproximately97.4%ofCanadians.Notonlywerethese
networksservingover29.7millionCanadiansubscribers,therewerealsoover3.0millionmachineto
machineconnectionsreportedin2015,anincreaseof19%from2014.
InadditiontoadvancedwirelessnetworkssuchasLTEwhichprovidebroadbandInternetaccess,wireless
serviceprovidershavesignificantlyincreasedthenumberofpubliclyavailableWiFihotspotlocations(free
andforpay)acrossthecountyfrom14,000attheendof2014toover21,000bytheendof2015.This
providedCanadiansanadditionalmethodofaccessingvoiceanddatacommunicationservicesontheir
handheldandotherwirelesscommunicationdevices.WiFihotspotsalsoprovidewirelesssubscribersa
meanstominimizepotentialroamingcharges.
Overthepastfiveyears,thepercentageofCanadianwhosubscribedtowirelessservicesincreasedfrom80%
to82%,however,thesubscribergrowthratehasdeclinedfrom5.9%to3.4%.Atthesametime,Canadians
haveshiftedthewayinwhichtheyusetheirmobiledevices,byplacinganemphasisondatausagerather
thanvoiceservices.Canadiansappetitetoaccessmobileapplications,multimediaservices,social
networking,Internetbrowsing,andotherdataintensiveactivitieshavedrivensmartphoneadoptionrates
higherandwirelessdatarevenuegrowthtoover15.7%in2015,and,onaverage,18.8%overthepastfive
years.
In2013,theWirelessCodecameintoeffect,ensuringthatconsumersofwirelessservicescouldbetter
understandtheircontracts,establishingconsumerfriendlybusinesspractices,significantlylimitingtheearly
cancellationfeesthatwerepreviouslysoughtbyretailwirelessserviceproviders;andenablingconsumersto
takeadvantageofcompetitiveoffersatleasteverytwoyears.In2015,approximately86%ofpostpaidplans
hadcontractsthatwereequaltoorlessthantwoyearsinlength,comparedto67%in2014and44%in2013.
Intermsofproviderchoice,CanadianswereservedbythreelargenationalWSPs,collectivelyaccountingfor
90%ofwirelessservicesubscribers.Anumberofsmaller,regional,facilitiesbasedWSPsandasmallnumber
ofmobilevirtualnetworkoperatorsandresellersaccountedfortheremaining10%.Inbothurbancentres
andruralcommunities,CanadiansgenerallyhadachoiceofbetweentwoandsixWSPs.
280
Section5.5CMR2016
Afterthesaleofthe700MHzspectrumauctionin2014,theGovernmentofCanadatookadditional
measuresinearly2015toencouragegreatercompetitioninthewirelessmarketbyreleasing50MHzof
spectruminanauctionforadvancedwirelessservices(AWS3)inthebandsof17551780MHzand2155
2180MHz.Asaresult,fivecompaniesinvested$2.1billioninAWS3spectrumand39licenceswereissuedin
2015.Theamountofcapitalinvestmentasapercentageoftotalwirelessrevenues,orcapitalintensity,
droppedto22%in2015comparedto35%in2014largelyduetohigherinvestmentspendingonspectrumin
2014.
In2015,theCommissionpublishedTelecomRegulatoryPolicyCRTC2015177whichdeterminedthatitis
necessarytoregulateratesthatBellMobility,RogersCommunicationsandTELUSCommunicationsCompany
chargeotherwirelesscarriersfordomesticGlobalSystemforMobilecommunications(GSM)based
wholesaleroaming.Theseregulationswillfacilitatesustainablecompetitionandprovidebenefitsto
Canadians,suchasreasonablepricesandinnovativeservices,aswellascontinuedinnovationandinvestment
inhighqualitymobilewirelessnetworks.Inthedecision,theCommissionexpresseditsintenttomonitorthe
competitiveconditionsinthemobilewirelessmarket.
i Revenues
Figure5.5.1Wirelessservicerevenueandsubscribergrowthrates(excludingpaging)
Wirelessrevenueandsubscribergrowthrates
(excludingpaging)
8 7.6
5.9
Growthrate(%)
6
6.2
5.0 3.7
4 3.3
3.5 3.4
2
2.3
1.5
0
2011 2012 2013 2014 2015
Revenues Subscribers
Source:CRTCdatacollection
ThistableshowsrevenueandsubscribergrowthratesforWSPsfrom2011to2015.In2015,thewireless
revenuegrowthrateclimbedtoitshighestlevelinmorethanfiveyearsto7.6%andsubscribergrowthrate
reboundedto3.4%.
281
Section5.5CMR2016
Table5.5.1Retailwirelessandpagingservicerevenues($millions)
Growth(%) CAGR(%)
Type 2011 2012 2013 2014 2015
20142015 20112015
Wireless 18,368.6 19,504.8 20,179.3 20,927.9 22,511.7 7.6 5.2
Paging 38.2 21.8 18.4 17.3 12.6 26.9 24.1
Totalrevenues 18,406.7 19,526.6 20,197.7 20,945.2 22,524.3 7.5 5.2
Source:CRTCdatacollection
Thistableshowstherevenueforthewirelessandpagingservicemarketsfrom2011to2015.Annualgrowth
ratesforwirelessservices(excludingpaging)canbefoundinthefigure5.5.1.
Table5.5.2Retailwirelessandpagingservicerevenuecomponents($millions)
Growth(%) CAGR(%)
Type 2011 2012 2013 2014 2015
20142015 20112015
Basicvoice 9,816.5 9,486.8 8,818.7 8,665.5 8,689.0 0.3 3.0
Longdistance 1,286.2 1,255.6 1,160.3 880.4 656.1 25.5 15.5
Paging 38.2 21.8 18.4 17.3 12.6 26.9 24.1
Terminal
equipment
1,401.9 1,532.8 1,501.5 1,673.7 2,129.8 27.3 11.0
including
handhelddevices
Data 5,046.1 6,233.2 7,546.1 8,672.6 10,034.9 15.7 18.8
Roamingand
817.8 996.3 1,152.8 1,035.7 1,001.9 3.3 5.2
other
Data,roaming,
5,863.9 7,229.5 8,698.8 9,708.3 11,036.8 13.7 17.1
andother
Total 18,406.7 19,526.6 20,197.7 20,945.2 22,524.3 7.5 5.2
Source:CRTCdatacollection
Thistableshowstheservicerevenuecomponentsofthewirelessmarketfortheyears2011to2015.These
componentsincludevoice,longdistance,paging,hardware,data,roaming,andother.Mobiletelevision
revenuesareincludedwithindatarevenues.
282
Section5.5CMR2016
Table5.5.3Prepaidandpostpaidretailwirelessservicerevenues(basicvoice,longdistance,anddata)($millions)
Growth(%) CAGR(%)
Type 2011 2012 2013 2014 2015
20142015 20112015
Prepaid 978.2 877.3 790.4 871.6 879.8 0.9 2.6
Postpaid 14,957.3 15,762.3 16,303.6 17,179.5 18,345.8 6.8 5.2
Total 15,935.5 16,639.6 17,094.0 18,051.1 19,225.6 6.5 4.8
Source:CRTCdatacollection
Canadianshaveachoiceofeitherprepaidorpostpaidwirelessservices.Withprepaidservices,asignificant
portionofservicesandusageispaidpriortoconsumingtheservices.Withpostpaidservices,asignificant
portionofservicesandusageispaidsubsequenttoconsumingtheservices.
Figure5.5.2Roamingrevenues,bytypeanddestination,2015
Roamingrevenues,bytypeanddestination,2015
70 66 65
60
50
Revenues(%)
40
32 33
30
20
10
2 2
0
Canada UnitedStates International
Voice Data
Source:CRTCdatacollection
WSPsextendtheircoverageareatoareaswheretheydonothavefacilitiesbymakingarrangementswith
otherWSPsthatdohavefacilitiesinthoseareastoofferservicetotheirendusers.Whenasubscriberuses
thefacilitiesofanotherWSP,thesubscriberissaidtoberoaming.Thisgraphshowsthepercentageof
roamingoutrevenuesthatwerederivedwithinCanada,theUnitedStates,andinternationally.SMSandMMS
revenueswereexcludedfromthedatarevenuecomponentwithinthisparticularfigure.
While61%ofvoiceroamingand48%ofdataroaminghappenswithinCanada(asshowninFigure5.5.24),the
revenuesmainlycomefromroamingintheUnitedStates(65%).
283
Section5.5CMR2016
ii Subscriberdata
Table5.5.4Numberofwirelessandpagingservicesubscriptions(thousands)
Growth(%) CAGR(%)
Type 2011 2012 2013 2014 2015
20142015 20112015
Wireless 26,844.3 27,720.6 28,363.8 28,788.9 29,765.4 3.4 2.6
Paging 219.0 186.3 161.5 146.7 161.5 10.1 7.3
Source:CRTCdatacollection
Thistableshowsthenumberofsubscriberstowirelessandpagingservicesbetween2011and2015.From
2011to2015,therehavebeenasteadyincreaseinwirelesssubscribers,whilepaginghasgenerallydeclined.
Table5.5.5Postpaidwirelessservicesubscribersasapercentageoftotalwirelessservicesubscribers(%)
Canadianssubscribingtowirelessservicesfavourpostpaidservices.
Figure5.5.3Percentageofwirelessservicecontracts,byduration
Percentageofwirelessplanswithcontracts,byduration
60 56.4
50.1
50
40 38.1
36.2
Percentage(%)
33.4
28.5
30
24.0
19.5
20
13.7
10
0
Lessthan1year 1to2years Greaterthan2years
2013 2014 2015
Source:CRTCdatacollection
Thischartshowsthepercentageofpostpaidplansthatwereundercontractforlessthan1year,for1to2
years,andforgreaterthan2years.
WiththeimplementationoftheWirelessCodein2013,thepercentageofpostpaidplanswithcontractsof
morethan2yearshasdeclinedsignificantly.
284
Section5.5CMR2016
Figure5.5.4TotalanddailynumberofMMSandSMSmessages
TotalanddailySMSandMMSmessages
205 560
Numberofmessagesperday
551 550
200
Numberofmessages
201 540
195 533 530
(millions)
(billions)
531
194 195
190 520
510 510
185
186
500
180
490
175 480
2012 2013 2014 2015
SMSandMMS SMSandMMSdaily
Source:CRTCdatacollection
ThistableshowsthegrowthinthenumberofmessagessentandreceivedbyCanadiansviaSMSandMMSper
dayandannuallyfortheperiod2011to2015.ThetotalnumberofSMSandMMSmessageswasrestatedfor
2012toincludeestimatesforacompanythatwasoverlooked.
Multimediamessagingservice(MMS)issimilartoSMS,butitenablesthetransmissionof
multimediacontent,suchaspicturesandvideos,betweensubscribers.
Shortmessageservice(SMS)enablesthetransmissionoftextmessagesofupto160charactersin
lengthbetweensubscribers.
Table5.5.6AveragemonthlySMS/MMS(messages/month)anddata(MB/month)usage
Thistableshowstheaveragemobiledatausageacrossallretailsubscribersandtheaveragedatausage
amongthosesubscriberswhosubscribedtoadataplan.
Theaveragewirelessdatausagepersubscriberandsubscriberwhosubscribedtoadataplanwerecalculated
bydividingtotalretaildatausage(upload/downloaddata)fortheyearbytheaveragenumberofsubscribers
atthebeginningandattheendoftheyear.Subscriberswhosubscribedtoadataplanwereclassifiedas
thosewhosubscribedtovoiceanddataanddataonlyplans.
285
Section5.5CMR2016
Table5.5.7Averagerevenueper1GBdata/month($)
Metric 2015
1GBofdatausage 31.29
Source:CRTCdatacollection
Thistableshowstheaveragerevenuesgeneratedfrom1GBofdatausagepermonth.Toderivethisnumber,
onlycompaniesthatprovidedbothdatatrafficandrevenueswereincludedinthecalculation.
iii Competitivelandscape
Figure5.5.5TSPswirelesssubscribermarketshare
Wirelesssubscribermarket Wirelesssubscribermarket
share,2014 share,2015
Other Other
Rogers Rogers
10% 10%
33% 33%
Bell
TELUS Group TELUS Bell
28% 29% 29% Group
28%
Source:CRTCdatacollection
Thesechartsshowthepercentageofsubscriberstowirelessservicesin2014and2015forCanadasthree
majorTSPs:theBellGroupofcompanies(BellGroup),RogersCommunicationsPartnership(Rogers),and
TELUS.Collectively,Bell,Rogers,andTELUShad90%ofwirelesssubscribersin2014and2015.
TheOthercategoryincludesTSPssuchasMTSAllstream,SaskTel,othersmallTSPs,aswellas,theremaining
newentrantsthatacquiredspectruminInnovation,ScienceandEconomicDevelopmentCanadas2008AWS
spectrumauctionandwerestilloperatingasacompetitortoBellGroup,Telusand/orRogersin2014.
TheBellGroupcategoryincludesBellCanada;BellMobility;LatitudeWireless;NorthernTel,Limited
Partnership;NorthwestelMobility;Tlbec,LimitedPartnership;andKMTS.Asof2013,PublicMobiles
figureswereincludedwiththoseofTELUS.In2015,Data&AudioVisualEnterprisesWirelessInc.s(Mobilicity)
figureswereincludedwiththoseofRogers.
286
Section5.5CMR2016
Figure5.5.6TSPswirelessservicerevenuemarketshare
Wirelessrevenuemarket Wirelessrevenuemarket
share,2014 share,2015
Other Other
Rogers 8%
8% Rogers
34%
34%
Bell Bell
TELUS Group Group
29% 29% TELUS 29%
29%
Source:CRTCdatacollection
Thesechartsshowthepercentageofrevenuesfromwirelessservicesin2014and2015forCanadasthree
majorTSPs:theBellGroup,Rogers,andTELUS.Collectively,Rogers,Bell,andTelushad92%ofallwireless
revenuesin2014and2015.
287
Section5.5CMR2016
Figure5.5.7Percentageofrevenuesandsubscribersderivedviaprimarybrands,extensionbrands,and
resellers/rebillers
Percentageofrevenuesandsubscribersderivedviaprimarybrands,
extensionbrands,andresellers/rebillers
100
90 82 80
80 72 73
Percentage(%)
70
60
50
40
28 25
30
17 19
20
10 1 1 1 1
Primarybrands Extensionbrands Resellers/Rebillers Primarybrands Extensionbrands Resellers/Rebillers
2014 2015
Revenues Subscribers
Source:CRTCdatacollection
CanadianWSPsmarketwirelessservicesthroughprimaryandextensionbrands.Bymarketingtheirservices
throughvariousmarketsegments,WSPsareabletodifferentiateserviceofferingstopotentiallyaffectthe
competitivelandscapeinregionalmarkets.Thisgraphdepictstherevenuesandsubscribersgarneredthrough
primarybrands,extensionbrands,andreseller/rebillerarrangements.
Extensionbrandsarebrandnamescreatedbycompaniestoservespecificcustomerneeds.These
namesareinadditiontothecompaniesestablishedormainbrand.Extensionbrandsaresometimes
referredtoasflankerbrands.SomeCanadianflankerbrandsincludeFido,Solo,andKoodo.
Resellers/rebillersarecompaniesthatrelymainlyonthelarge,facilitiesbasedoperatorstopackage,
market,bill,anddelivertheirmobileservices,e.g.,PCmobile,PetroCanadaMobility,andSpeakOut
7Eleven.
288
Section5.5CMR2016
Table5.5.8Wirelessservicesubscribermarketshare,byprovinceandterritory(2015)(%)
CanadasmajorWSPshavedifferentsharesoftheprovincialwirelessmarkets.Thistabledisplaysthemarket
sharesownedbythemajorWSPs,excludingWindandEastlink,inCanadasprovincesandterritories.
ThethreemajorWSPshavethelargestmarketshareacrossallprovincesandterritoriesexceptSaskatchewan
andManitoba.
TheNorthincludesYukon,theNorthwestTerritories,andNunavut.
Table5.5.9Averagemonthlychurnrates(%)
ThistableshowstheaveragechurnrateforthreemajorWSPsfrom2011to2015.Customersmayleavetheir
WSPforanumberofreasons,includingdissatisfactionwiththeservice,takingadvantageofcompetitive
offers,andpricingissues.
Theaveragechurnrateisameasureofsubscriberturnover.Itisderivedbydividingthenumberof
subscribersthathaveleftawirelessservicebythetotalnumberofwirelessservicesubscribers.The
higherthenumberthemorepeoplearechangingprovider.
289
Section5.5CMR2016
iv Technologyindicators
ThefollowingtablesandchartsindicatetheextenttowhichCanadiansareadaptingtoadigital
communicationsystem.Smartphones,tablets,andotherwirelessdevicesthatprovideaccesstotheInternet
arecontinuallyincreasingdemandforwirelesscapacity.
Figure5.5.8Mobiledevicepenetration
Mobiledevicepenetration
100
90 83 83 86
PercentageofCanadians(%)
77 80
80 73
70 66
62
60 51 52
49
50
37 39
40
30 26
20 10
10
0
2011 2012 2013 2014 2015
ThisgraphshowsthepercentageofCanadians,18yearsofageandolder,whoownedregularcellphones,
smartphones,andtablets,from2011to2015.Theuseofsmartphonesandtabletsincreasesthevolumeof
datatrafficonthenetwork.
Table5.5.10Mobiledevicepenetration,bylinguisticgroup(%)
ThistableshowsthepercentageofFrancophonesandAnglophonesinCanadawhoowncellphones,
smartphones,andtablets,from2011to2015.Cellphoneownersincludepeoplewhoowneitheracellphoneor
asmartphone.
290
Section5.5CMR2016
Figure5.5.9Mobiledevicepenetration,byregion,2015
Mobiledevicepenetration,byregion,2015
52
BritishColumbia 77
10 54
Alberta 83
9
55
Manitoba/Saskatchewan 74
11
54
Ontario 76
12
49
Quebec 64
14
48
Atlantic 70
10
52
Total 73
12
0 20 40 60 80 100
Percentage(%)
Tablet Smartphone Regularcellphone
Source:MTM2015(Respondents:Canadiansaged18+)
Canadianswhoresideinthewesternprovincesaregenerallymorelikelytoadoptsmartphonesandtablets
thanCanadianswhoresideintheeasternprovinces.
291
Section5.5CMR2016
Table5.5.11Numberandpercentageofsubscriberswithadataplan,byprovinceandterritory
2014 2015
Growth
Percentage
Numberof Numberof Percentageof (%)ofnumber
oftotal
Province/territory subscribers subscribers subscribers ofsubscribers
subscribers
withadata withadata withadata withadata
withadata
plan(000s) plan(000s) plan(%) plan
plan(%)
BritishColumbia 2,559 13 3,021 14 18.0
Alberta 2,657 14 3,069 14 15.5
Saskatchewan 653 3 720 3 10.2
Manitoba 864 4 900 4 4.2
Ontario 7,999 41 8,825 40 10.3
Quebec 3,450 18 4,099 19 18.8
NewBrunswick 358 2 403 2 12.7
NovaScotia 479 2 552 3 15.2
PrinceEdwardIsland 70 0 80 0 14.5
NewfoundlandandLabrador 289 1 327 1 13.3
TheNorth 55 0 62 0 12.6
Source:CRTCdatacollection
ThenumberofsubscriberswhosubscribedtoadataplanisameasureoftheextenttowhichCanadiansare
participatinginthedigitaleconomy,andprovidesanindicationoftheextenttowhichCanadiansareadopting
advancedhandhelddevicessuchassmartphonesandtablets.
Thistableshowsthenumberofsubscriberswhosubscribedtoadataplanineachregionofthecountryin
2014and2015,aswellasthenumberofsubscriberswithadataplanexpressedasapercentageofallmobile
subscribers.
292
Section5.5CMR2016
Figure5.5.10Mobiledataonlyplanrevenuesandsubscribers,bydataplancapacity,2015
Dataonlyplanrevenues,bydata Dataonlyplansubscribers,by
plancapacity,2015
Greater Greaterdataplancapacity,2015
than2GB than2GB
26% 14%
Between
501MB
Between and2GB
501MB 5%
and2GB
12% Lessthan Lessthan
501MB 501MB
62% 81%
Source:CRTCdatacollection
ThesechartsshowthepercentagesofrevenuesandsubscribersrealizedbyWSPsbydataplancapacityin
2015.Ofthetotalnumberofsubscribers,6%werereportedtobedataonlysubscribers.
Dataonlyplansincludebuiltinandportableaccessdevices,suchashubs,sticks,dongles,and
laptops.
Figure5.5.11Percentageofmobilerevenuesfromvoicevs.voiceanddatavs.dataonlyplans,2015
Percentageofmobilerevenuesfromviavoicevs.voice
anddatavs.dataonlyplans,2015
Dataonly
3%
Voice
15%
Voiceanddata
82%
Source:CRTCdatacollection
ThischartshowsthepercentageofrevenuesthatWSPsderivefromcustomerswhosubscribetovoiceplans,
voiceanddataplans,anddataonlyplansin2015.
293
Section5.5CMR2016
Table5.5.12Mobilebroadbandsubscribersbytypeofplan
Growth(%) CAGR(%)
Type Metric 2011 2012 2013 2014 2015
20142015 20112015
Numberofsubscribers(millions) 12.0 13.0 16.1 17.7 20.2 14.4 13.9
Voiceanddata
Percentageofallsubscribers(%) 44 47 57 61 68 10.7 11.6
Numberofsubscribers(millions) 1.2 1.3 1.5 1.6 1.8 12.8 11.5
Dataonly
Percentageofallsubscribers(%) 4 5 5 6 6 9.1 9.2
Numberofsubscribers(millions) 13.2 14.3 17.6 19.3 22.0 14.3 13.7
Total
Percentageofallsubscribers(%) 48 51 62 67 74 10.5 11.3
Source:CRTCdatacollection
From2011to2015,Canadiansincreasinglyusedbroadbandtechnologyonmobiledevices.
Figure5.5.12Percentageofmobilesubscriber,bytypeofplans,2015
Percentageofsubscriberswithand Percentageofsubscriberswithdata
withoutadataplan,2015 plans,bysizeofdataplan,2015
80 74 80
70 70
60 60
50 50
40 40 36 35
30 26 30
20 17
20 12
10 10
0 0
Nodata Data Lessthan 300MB 1GB2GB Greater
300MB 999MB than2GB
Source:CRTCdatacollection
Thedatareportedinthisdualbarchartrepresentsover90%oftotalmobilesubscribers.Thechartontheleft
showsthepercentageofsubscriberswithandwithoutadataplan.Thechartontherightshowsthepercent
distributionofsubscriberswithadataplan,bysizeoftheplan.Duetothedifficultyofreporting
correspondingvoiceandSMSservicesassociatedwitheachdefineddataplan,theassumptionwasmadethat
alldataplansincludedvoiceandtextmessagingservices.
294
Section5.5CMR2016
Figure5.5.13PopularInternetandmobileactivitiesperformedbyCanadiansontheirsmartphone,2015
PopularInternetandmobileactivitiesperformedbyCanadianson
theirsmartphone,2015
Socialnetworking 66
63
Readonlinenews 49
46
Madeanonlinepurchase 24
23
Bankingonline 35
44
AccessInternet 83
87
Send/receiveemail 64
70
0 20 40 60 80 100
PercentageofCanadiansmartphoneowners(pastmonth)
Francophones Anglophones
Source:MTM2015,spring2016(Respondents:Canadiansaged18+)
ThisgraphshowstheactivitiesthatFrancophonesandAnglophonescarryoutusingtheirsmartphones.
295
Section5.5CMR2016
Figure5.5.14PopularInternetandmobileactivitiesperformedbyCanadiansontheirtablet,2015
PopularInternetandmobileactivitiesperformedbyCanadianson
theirtablet,2015
Socialnetworking 60
46
52
Readonlinenews
37
Madeanonlinepurchase 27
23
Bankingonline 33
25
AccessInternet 87
85
Send/receiveemail 57
53
0 20 40 60 80 100
PercentageofCanadiantabletowners(pastmonth)
Francophones Anglophones
Source:MTM2015,spring2016(Respondents:Canadiansaged18+)
296
Section5.5CMR2016
v Performanceindicators
Table5.5.13Averagewirelessservicerevenuepersubscriber
CAGR(%)
Metric 2011 2012 2013 2014 2015
20112015
Averagewirelessservice
revenuepersubscriber 58.7 59.6 60.0 61.0 64.1 2.2
($/month)
Annualgrowth(%) 1.7 1.6 0.7 1.8 5.0 2.2
Source:CRTCdatacollection
AveragewirelessservicerevenuepersubscriberisausefulmeasureoftherevenuesWSPsreceiveper
subscriber.Conversely,fromaconsumerperspective,itisameasureofconsumersexpendituresonwireless
services.Thistableshowstheaveragerevenueperuserforwirelessservicesfortheyears2011to2015.
Theaveragewirelessservicerevenuepersubscriberwascalculatedbydividingtotalannualwireless
servicerevenuesbytheaveragenumberofsubscribersduringtheyear.Theresultwasthendivided
bytwelvetoobtainamonthlyresult.Theaveragenumberofsubscriberswasdeterminedbydividing
thesumofthenumberofsubscribersatthebeginningandattheendoftheyearbytwo.
Table5.5.14Averagewirelessservicerevenuespersubscriber,byprovinceandterritory(excludingpaging)($)
CAGR(%)
Province/territory 2011 2012 2013 2014 2015
20112015
BritishColumbia 63.84 62.55 63.42 62.48 67.32 1.3
Alberta 75.82 72.82 74.10 75.01 76.48 0.2
Saskatchewan 53.51 57.83 58.72 62.16 64.45 4.8
Manitoba 53.07 54.99 59.42 60.97 63.21 4.5
Ontario 58.18 60.60 58.93 59.50 61.56 1.4
Quebec 51.08 51.46 53.69 53.58 56.92 2.7
NewBrunswick 53.15 54.62 55.65 55.56 58.95 2.6
NovaScotia 55.26 57.22 58.15 56.98 63.02 3.3
PrinceEdwardIsland 52.01 55.47 52.86 51.62 57.73 2.6
Newfoundlandand
53.86 58.70 60.61 61.18 68.90 6.3
Labrador
TheNorth 105.43 94.31 135.44 81.09 92.37 3.3
Source:CRTCdatacollection
ThistableshowstheaveragerevenueperuserforWSPsineachregionofthecountryfortheyears2011to
2015basedonprovincialrevenueandsubscriberdatareported,butexcludesWindandEastlinksrevenues
andsubscribersinthe2015analysis.Estimatesweremadeforcompaniesthatwerenotrequiredtoprovide
provincialandterritorialdata.
297
Section5.5CMR2016
vi Price
Thepricestructureofwirelessservicesisbasedonusage.Toassessthepriceofwirelessservicesinurban
centresandinruralcommunities,fourbasketswereusedandbothflankerandprimaryservicebrandswere
considered.ThesebasketswereadoptedfromthereportonPriceComparisonsofWireline,Wirelessand
InternetServicesinCanadaandwithForeignJurisdictions(2014).
TheLevel1mobileservicebasketrepresentsintroductoryorlowusagetypesofplansthatoffer
150minutesofvoiceservice,withnoSMSorInternetdataservicepermonth.
TheLevel2mobileservicebasketencompasseslowtomidtiertypesofplansthatprovide
customerswithatleast450minutesofvoiceservice,300SMS,andnoInternetdataservicesper
month.
TheLevel3mobileservicebasketcomprisesplansrepresentativeofatypicalsmartphoneuser
thatofferatleast1200minutesofvoiceservice,300SMS,and1GBofInternetdatapermonth.
TheLevel4mobileservicebasketisgearedtowardssmartphoneuserswhowantaccessto
unlimitedvoiceandSMS,alongwith2GBofInternetdatapermonth.
Mostnoticeablechangesin2015comparedto2014weretheincreasedpricevariancebetweenthelowest
andhighestpriceinthelevel2and3basketsandtheshiftinthenumberofWSPsinvariousservicebaskets
andcommunitycentres.Adecreaseinthenumberofprovidersinanumberofareaswasmainlydueto
consolidationinthewirelessmarketsector.
WhatisthereportonPriceComparisonsofWireline,WirelessandInternetServicesinCanadaand
withForeignJurisdictions?
Thisreportprovidesa2016updatetothepreviousannualtelecommunicationspricecomparison
studiesconductedovertheperiodfrom2008to2016fortheCRTCandInnovation,Scienceand
EconomicDevelopmentCanada(ISED).
Theindividualservicescoveredbythestudyincludewireline,mobilewireless,broadbandInternet,
andmobileInternetservices.
Formoreinformation,pleaseconsultthefollowinglink:
http://www.crtc.gc.ca/eng/publications/reports/compar/compar2016.htm
Urbancentres
UrbancentreshavingfourormoreWSPsgenerallyhadthelargestpricevariancebetweenthelowestand
highestpricereported,aswellasthelowestpricesineachofthefourservicebaskets.Thevariancebetween
lowestandhighestpricesacrossallservicebasketsinanygivenurbancentrewaswide,rangingfromalowof
$3toahighof$33.TheaveragepricevariancesbetweenlowestandhighestpricesfortheLevel1,2,3,and4
servicebasketswere$6,$13,$22,and$21,respectively.
298
Section5.5CMR2016
Figures5.5.15to5.5.18displaytherangeinthemonthlypriceofaLevel1,Level2,Level3,andLevel4
wirelessservicebasketin24urbancentresinCanada.Thenumberattheendofeachbaristhehighestprice.
Thenumberappearinginparenthesesalongtheverticalaxisafterthenameofeachurbancentrerepresents
thenumberoflocalWSPs.
Figure5.5.15PriceofaLevel1basketwirelessservice($/month)andnumberofcompaniesprovidingtheservice
inanumberofselectcities,2015
PriceofaLevel1basketwirelessservice($/month)and
numberofcompaniesprovidingtheserviceinanumberof
selectcities,2015
Iqaluit(2) 29 35
Yellowknife(2) 29 35
Whitehorse(2) 29 35
St.John's(3) 25 30
Halifax(4) 25 30
Charlottetown(4) 25 30
Fredericton(3) 25 30
Qubec(4) 21 30
Montral(4) 21 30
Oshawa(4) 25 30
Windsor(4) 25 30
StCatharinesNiagara(4) 25 30
KitchenerWaterloo(4) 25 30
London(4) 25 30
Hamilton(4) 25 30
OttawaGatineau(5) 21 30
Toronto(4) 25 30
Winnipeg(4) 25 35
Regina(4) 25 30
Saskatoon(4) 25 30
Edmonton(4) 25 30
Calgary(4) 25 30
Victoria(3) 25 30
Vancouver(4) 25 30
20 22 24 26 28 30 32 34
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
299
Section5.5CMR2016
Figure5.5.16PriceofaLevel2basketwirelessservice($/month)andnumberofcompaniesprovidingtheservice
inanumberofselectcities,2015
PriceofaLevel2basketwirelessservice($/month)
andnumberofcompaniesprovidingtheserviceina
numberofselectcities,2015
Iqaluit(2) 29 50
Yellowknife(2) 29 50
Whitehorse(2) 29 50
St.John's(3) 29 40
Halifax(4) 29 45
Charlottetown(4) 30 45
Fredericton(3) 30 40
Qubec(4) 29 42
Montral(4) 29 42
Oshawa(4) 29 40
Windsor(4) 29 40
StCatharinesNiagara(4) 29 40
KitchenerWaterloo(4) 29 40
London(4) 29 40
Hamilton(4) 29 40
OttawaGatineau(5) 29 42
Toronto(4) 29 40
Winnipeg(4) 29 46
Regina(4) 30 41
Saskatoon(4) 30 41
Edmonton(4) 29 40
Calgary(4) 29 40
Victoria(3) 29 40
Vancouver(4) 29 40
25 30 35 40 45 50
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
300
Section5.5CMR2016
Figure5.5.17PriceofaLevel3basketwirelessservice($/month)andnumberofcompaniesprovidingtheservice
inanumberofselectcities,2015
PriceofaLevel3basketwirelessservice($/month)and
numberofcompaniesprovidingtheserviceinanumberof
selectcities,2015
Iqaluit(2) 65 68
Yellowknife(2) 65 68
Whitehorse(2) 65 68
St.John's(3) 50 68
Halifax(4) 50 69
Charlottetown(4) 50 68
Fredericton(3) 50 69
Qubec(4) 50 55
Montral(4) 50 55
Oshawa(4) 38 68
Windsor(4) 38 68
StCatharinesNiagara(4) 38 68
KitchenerWaterloo(4) 38 68
London(4) 38 68
Hamilton(4) 38 68
OttawaGatineau(5) 38 68
Toronto(4) 38 68
Winnipeg(4) 48 81
Regina(4) 45 76
Saskatoon(4) 45 76
Edmonton(4) 38 68
Calgary(4) 38 68
Victoria(3) 50 68
Vancouver(4) 38 68
35 40 45 50 55 60 65 70 75 80 85
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
301
Section5.5CMR2016
Figure5.5.18PriceofaLevel4basketwirelessservice($/month)andnumberofcompaniesprovidingtheservice
inanumberofselectcities,2015
PriceofaLevel4basketwirelessservice($/month)andnumberof
companiesprovidingtheserviceinanumberofselectcities,2015
Iqaluit(2) 65 75
Yellowknife(2) 65 75
Whitehorse(2) 65 75
St.John's(3) 60 65
Halifax(4) 60 65
Charlottetown(4) 60 66
Fredericton(3) 60 66
Qubec(4) 50 65
Montral(4) 50 65
Oshawa(4) 35 65
Windsor(4) 35 65
StCatharinesNiagara(4) 35 65
KitchenerWaterloo(4) 35 65
London(4) 35 65
Hamilton(4) 35 65
OttawaGatineau(5) 35 65
Toronto(4) 35 65
Winnipeg(4) 48 74
Regina(4) 48 76
Saskatoon(4) 48 76
Edmonton(4) 35 65
Calgary(4) 35 65
Victoria(3) 60 65
Vancouver(4) 35 65
30 35 40 45 50 55 60 65 70 75 80
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
302
Section5.5CMR2016
Pricecomparisonofurbanandruralwirelessservices
ToassessthepriceofwirelessservicesinruralCanada,54ruralcommunitieswereselected,andthepriceof
wirelessservicesinthesecommunitieswascomparedtothatinurbancentres.
Thepriceofwirelessservicesinruralcommunities,acrossallservicebaskets,wasgenerallyequaltoorhigher
thanthatinurbancentres.Forlevel1and2servicebasketswereveryconsistentbetweenurbanandrural
communities.Differencesweremorepronouncedforlevel3and4basketsespeciallyinOnatrioandAlberta
wheretheminimumpricevariedby25$betweenruralandurbancommunities.
Thevariancebetweenthelowestandhighestpriceofwirelessservicesacrossallservicebasketsinrural
communities,byprovinceandterritory,waswide,rangingbetween$3and$33.Thisvariancewasalsowide
intheurbancentres.
TheaveragepricevariancesamongruralcommunitiesforLevel1,2,3,and4servicebasketswere$6,$14,
$17,and$11,respectively.Intheurbancentresfortheidenticalservicebaskets,thepricevarianceswere$6,
$15,$19,$16,respectively.
Whichruralcommunitieswereincluded?54ruralcommunitieswereselectedtoassessthepriceof
wirelessservices(seeAppendix9).Thesecommunitiesmetthefollowingcriteria:
Theywerenotpartofoneofthecensusmetropolitanareasofthe24urbancentres;
Theyhadpopulationdensitiesoffewerthan400peoplepersquarekilometre,ortheir
populationcentreshadfewerthan1,000people;
Thenumberofcommunitiesineachprovince/territorywasproportionaltothepopulation
oftheprovince/territory;and
Thecommunitieswerenotclusteredtogether.
Figures5.5.19to5.5.22displaytherangeinthemonthlypriceofwirelessservicesinurbancentresandrural
communitiesinCanada,byprovinceandterritory.Thenumberattheendofeachbaristhehighestprice.
Thenumberappearinginparenthesesalongtheverticalaxisafterthenameofeachprovinceandterritory
representsthenumberoflocalWSPs.
303
Section5.5CMR2016
Figure5.5.19PriceofaLevel1basketwirelessservice($/month)andnumberofcompaniesprovidingtheservice
inurbancentresandruralcommunities,2015
PriceofaLevel1basketwirelessservice($/month)andnumber
ofcompaniesprovidingtheserviceinurbancentresandrural
communities,2015
Nvt.Urban(2) 29 35
Nvt.Rural(2) 29 35
N.W.T.Urban(2) 29 35
N.W.T.Rural(2) 29 35
Y.T.Urban(2) 29 35
Y.T.Rural(2) 29 35
N.L.Urban(3) 25 30
N.L.Rural(3) 25 30
N.S.Urban(4) 25 30
N.S.Rural(3) 25 30
P.E.I.Urban(4) 25 30
P.E.I.Rural(4) 25 30
N.B.Urban(3) 25 30
N.B.Rural(3) 25 30
Que.Urban(4) 21 30
Que.Rural(4) 21 30
Ont.Urban(5) 21 30
Ont.Rural(3) 25 30
Man.Urban(4) 25 35
Man.Rural(4) 25 35
Sask.Urban(4) 25 30
Sask.Rural(4) 25 30
Alta.Urban(4) 25 30
Alta.Rural(3) 25 30
B.C.Urban(4) 25 30
B.C.Rural(3) 25 30
20 22 24 26 28 30 32 34
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
304
Section5.5CMR2016
Figure5.5.20PriceofaLevel2basketwirelessservice($/month)andnumberofcompaniesprovidingtheservice
inurbancentresandruralcommunities,2015
PriceofaLevel2basketwirelessservice($/month)andnumber
ofcompaniesprovidingtheserviceinurbancentresandrural
communities,2015
Nvt.Urban(2) 29 50
Nvt.Rural(2) 29 50
N.W.T.Urban(2) 29 50
N.W.T.Rural(2) 29 50
Y.T.Urban(2) 29 50
Y.T.Rural(2) 29 50
N.L.Urban(3) 29 40
N.L.Rural(3) 29 40
N.S.Urban(4) 29 45
N.S.Rural(3) 29 40
P.E.I.Urban(4) 30 45
P.E.I.Rural(4) 30 45
N.B.Urban(3) 30 40
N.B.Rural(3) 30 40
Que.Urban(4) 29 42
Que.Rural(4) 29 42
Ont.Urban(5) 29 42
Ont.Rural(3) 29 40
Man.Urban(4) 29 46
Man.Rural(4) 29 46
Sask.Urban(4) 30 41
Sask.Rural(4) 30 41
Alta.Urban(4) 29 40
Alta.Rural(3) 29 40
B.C.Urban(4) 29 40
B.C.Rural(3) 29 40
25 30 35 40 45 50
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
305
Section5.5CMR2016
Figure5.5.21PriceofaLevel3basketwirelessservice($/month)andnumberofcompaniesprovidingtheservice
inurbancentresandruralcommunities,2015
PriceofaLevel3basketwirelessservice($/month)and
numberofcompaniesprovidingtheserviceinurbancentres
andruralcommunities,2015
Nvt.Urban(2) 65 68
Nvt.Rural(2) 65 68
N.W.T.Urban(2) 65 68
N.W.T.Rural(2) 65 68
Y.T.Urban(2) 65 68
Y.T.Rural(2) 65 68
N.L.Urban(3) 50 68
N.L.Rural(3) 50 68
N.S.Urban(4) 50 68
N.S.Rural(3) 50 68
P.E.I.Urban(4) 50 69
P.E.I.Rural(4) 50 69
N.B.Urban(3) 50 69
N.B.Rural(3) 50 69
Que.Urban(4) 40 55
Que.Rural(4) 40 55
Ont.Urban(5) 38 68
Ont.Rural(3) 50 68
Man.Urban(4) 48 81
Man.Rural(4) 48 81
Sask.Urban(4) 45 76
Sask.Rural(4) 45 76
Alta.Urban(4) 38 68
Alta.Rural(3) 50 68
B.C.Urban(4) 38 68
B.C.Rural(3) 45 68
35 45 55 65 75 85
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
306
Section5.5CMR2016
Figure5.5.22PriceofaLevel4basketwirelessservice($/month)andnumberofcompaniesprovidingtheservice
inurbancentresandruralcommunities,2015
PriceofaLevel4basketwirelessservice($/month)and
numberofcompaniesprovidingtheserviceinurban
centresandruralcommunities,2015
Nvt.Urban(2) 65 75
Nvt.Rural(2) 65 75
N.W.T.Urban(2) 65 75
N.W.T.Rural(2) 65 75
Y.T.Urban(2) 65 75
Y.T.Rural(2) 65 75
N.L.Urban(3) 60 65
N.L.Rural(3) 60 65
N.S.Urban(4) 60 65
N.S.Rural(3) 60 65
P.E.I.Urban(4) 60 66
P.E.I.Rural(4) 60 66
N.B.Urban(3) 60 66
N.B.Rural(3) 60 66
Que.Urban(4) 50 65
Que.Rural(4) 50 65
Ont.Urban(5) 35 65
Ont.Rural(3) 60 65
Man.Urban(4) 48 74
Man.Rural(4) 48 74
Sask.Urban(4) 48 76
Sask.Rural(4) 48 76
Alta.Urban(4) 35 65
Alta.Rural(3) 60 65
B.C.Urban(4) 35 65
B.C.Rural(3) 55 65
30 40 50 60 70 80
Price($/month)
Variancebetweenhighestandlowestprice
Source:CRTCdatacollection
307
Section5.5CMR2016
vii Coverage/availabilitydetails
Figure5.5.23Wirelesscoverage,penetration,andARPUbyprovinceandterritory,2015
Wirelesscoverage,penetration,andARPUbyprovinceandterritory,2015
100 100
90
80 80
MonthlyARPU($)
70
Population(%)
60 60
50
40 40
30
20 20
10
0 0
B.C. Alta. Sask. Man. Ont. Que. N.B. N.S. P.E.I. N.L. North Canada
Wirelesscoverage Penetration HSPA+coverage LTE ARPU
Source:CRTCdatacollection
ThistableshowswirelesscoverageandpenetrationratesforvariouswirelesstechnologiessuchasLTEand
HSPA+,bypercentageofpopulationforeachprovinceandtheterritories.Thetablealsoshowstheaverage
monthlyrevenueperuser(ARPU)ineachregion.
Figure5.5.24Roamingvoiceanddatatrafficbydestination,2015
61 Roamingvoiceminutes(%) Roamingdatatraffic(%)
60 70
50 60
48
50
40 33
40 34
30
30
20 18
20
10 6
10
0 0
Canada UnitedStates International Canada UnitedStates International
Source:CRTCdatacollection
WSPsextendtheircoverageareatoareaswheretheydonothavefacilitiesbymakingarrangementswith
otherWSPsthatdohavefacilitiesinthoseareastoofferservicetotheirendusers.Whenasubscriberuses
thefacilitiesofanotherWSP,thesubscriberissaidtoberoaming.Thisdualchartshowsthepercentageof
voiceminutesanddatatraffic,excludingMMSandSMS,derivedfromroaminginandroamingoutwithin
Canada,theUnitedStates,andinternationally.
308
Section5.5CMR2016
Table5.5.15Wirelesscoverage,penetration,andaveragerevenuepersubscriber,byprovinceandterritory,2015
Thistableshowswirelesscoverageandpenetrationratesforvariouswirelesstechnologies,suchasLTEand
HSPA+,bypercentageofpopulationforeachprovinceandtheterritories.Thetablealsoshowstheaverage
monthlyrevenueperuserineachregion.ProvincialpenetrationratesandARPUexcludesdatafromWIND
andBragg,however,CanadaspenetrationrateincludesthedatafromWINDandBragg.
Table5.5.16Percentageofpopulationcoveredbynumberofdifferentwirelessnetworks,byprovinceand
territory,(%),2015
1 2 3
4ormore
Province/territory None network networks networks
networks
only only only
BritishColumbia 1 2 33 11 53
Alberta 0 0 35 9 56
Saskatchewan 1 25 71 3 0
Manitoba 2 2 21 75 0
Ontario 0 0 25 33 42
Quebec 1 4 5 18 73
NewBrunswick 0 4 92 4 0
NovaScotia 0 4 14 82 0
PrinceEdwardIsland 0 1 17 82 0
NewfoundlandandLabrador 4 49 47 0 0
TheNorth 25 15 60 0 0
Canada 1 3 25 25 46
Source:CRTCdatacollection
Thistablerepresentsthenumberofdifferentwirelessnetworks,intermsofradioaccessfacilities,ineachof
theprovincesandterritories.Inmanyprovinces,facilitiesbasedwirelessserviceproviderswhoownspectrum
sharethesameradioaccessfacilitiestooffertelecommunicationsservicestothepublic.Someadjustments
weremadetomoreaccuratelyreflectthecoverageinTheNorth.
309
Section5.5CMR2016
Figure5.5.25Establishedcarrierscoverageandpenetrationvs.newentrantscoverageandpenetration,(%of
population),2015
Establishedcarriers'vs.newentrants'coverageandpenetration,2015
99.4
2015 77.8
70.3
4.9
Establishedcarriers'
99.4
2014 76.2 coverage
64.3
4.5 Establishedcarriers'
99.4 penetration
2013 76.9
64.5 Newentrants'
3.8
coverage
99.4
2012 75.6 Newentrants'
57.6
4.2 penetration
99.0
2011 75.1
54.9
3.0
0 20 40 60 80 100
Percentage(%)
Source:CRTCdatacollection
Canadaswirelessservicemarketisdominatedbyestablishedcarriers.Thesecompaniesoffersignificantly
morecoverageandachievehighersubscriberpenetrationratesthanthenewentrants.
310
Section5.5CMR2016
Figure5.5.26NumberofWiFihotspotlocationsandmobilebroadbandpenetration,2015
NumberofWiFihotspotlocationsandmobilebroadband
penetration,2015
180 73% 80%
156 66%
160 64% 64% 70%
140 122 122 60%
120
50% 50%
100
78 77 40%
80
30%
60
35 20%
40 25 24
15 15 10%
20
0 0%
BC AB MB/SK ON QC
Freehotspotsper100,000populationin2014
Freehotspotsper100,000populationin2015
Mobilebroadbandpenetration,percentageofpopulation
Source:CRTCdatacollection
WiFihotspotsareanimportantwayinwhichTSPsattempttodifferentiatetheirservicesfromeachother,as
wellasawaytoextendtheirbrand.MajorprovidersinwesternCanadahavemovedtowardsprovidingfree
hotspots,asshownintheabovechart.
OnlyhotspotsprovidedbythemajorTSPsareincluded,whichmayexcludeindependentlyrunfreehotspots
providedbyhotels,restaurants,andotherpublicfacilities.
DatafortheAtlanticprovincesandtheNorthisnotreportedduetotheconfidentialityofthedata.
311
Section5.5CMR2016
Figure5.5.27NumberoffreeandpayforuseWiFihotspotlocationsinCanada,2015
NumberoffreeandpaidWiFihotspotlocationsin
Canada,2015
Forpay,941
Free,21,017
Source:CRTCdatacollection
TheabovechartshowsthenumberoffreeandpayforuseWiFihotspotsprovidedbymajorTSPsinCanada.
HotspotsarelocationswhereInternetaccessvia802.11WiFitechnologyisprovidedtothepublic.Freeis
definedashavingnochargeforatleast1/2hourofaccess,evenifaccessrequiresbeingapaidcustomerto
thelocation.
Thisdoesnotincludehotspotsthatonlyprovideaccesstoaprovidersexistingcustomers.
312
Section5.5CMR2016
Map5.5.1WirelessserviceavailabilitybynumberoffacilitiesbasedWSPs,2015
Source:CRTCdatacollection
ThismapshowsthecrosscountryavailabilityofwirelessservicesfromfacilitiesbasedWSPs.
313
Section5.5CMR2016
Map5.5.2WirelessHSPA+serviceavailabilitybyincumbentandnewentrantfacilitiesbasedWSPs,2015
Source:CRTCdatacollection
ThismapshowsthecrosscountryavailabilityofHSPA+networkbyincumbentandnewentrantfacilitiesbasedWSPs,aswellas,theexpansionofthe
incumbentsHSPA+networkfrom2010to2015.
314
Section5.5CMR2016
Map5.5.3WirelessLTEserviceavailabilitybetween2013and2015
Source:CRTCdatacollection
ThismapshowstheexpansionofLTEcoverageinCanadaoverthepastthreeyears.
315
Section5.5CMR2016
316
Section5.6CMR2016
5.6 Wholesaletelecommunicationssector
317
Section5.6CMR2016
WholesaleservicesareservicesprovidedbyaTSP(telecommunicationsserviceprovider)toanotherprovider
oftelecommunicationservicesforuseintheprovisionoftelecommunicationsservices.Allprovidersof
telecommunicationsservicesrelyonwholesaleservicestovaryingdegrees.Resellersoftelecommunications
servicesdependmoreonwholesaleservicesthancompaniesthathavetheirownfacilitiestoprovideservice.
In2015,forthepurposesofprovidingwirelineservices,resellersspent46centsoutofeveryrevenuedollar
forwholesaleservicescomparedtolessthan7centsforserviceprovidersthathavefacilities.
TheavailabilityofwholesaleservicesisamajorfactorthatultimatelyprovidesgreaterchoicetoCanadiansin
thetelecommunicationsmarket.In2015,thetelecommunicationswholesalemarketwas$3.9billionof
which29%wasfortheprovisionofwirelessservicesand71%forwirelineservices.
IndependentISPsarefrequentlydependentonaccessservicesoftheIncumbentTSPsandthecablebased
carriersinordertoconnecttotheircustomers.Overtheyears,salesofcablebasedaccessservices,knownas
TPIA(ThirdPartyInternetAccess),toindependentISPshaveincreased.
Wholesalefromwirelessservicesisanincreasinglyimportantpartofthetelecommunicationslandscape.
Jointnetworkbuildingbyseverallargecarriersallowthemtominimizeoverallcostsandreducetheneedfor
duplicatenetworks.Since2011,networksharingandroamingrevenueshaveincreasedatanaverageannual
rateof12.2%.
318
Section5.6CMR2016
i Revenues
Table5.6.1Wholesaletelecommunicationsrevenues($billions)
Growth(%) CAGR(%)
Sector 2011 2012 2013 2014 2015
20142015 20112015
Wireline 3.0 2.9 2.8 2.7 2.8 2.1 1.8
Wireless 0.7 0.8 1.0 1.0 1.1 8.1 11.8
Total 3.7 3.7 3.7 3.8 3.9 3.8 1.3
Source:CRTCdatacollection
Thetableshowsthatwirelinewholesalerevenueshavebeendecliningsince2011,whilewirelesswholesale
revenueshavebeenincreasing.Thewirelesswholesalemarketexcludesfixedwirelessservices.
Table5.6.2Wholesaletelecommunicationsrevenues,bymarketsector($millions)
Growth(%) CAGR(%)
Sector Category Subcategory 2011 2012 2013 2014 2015
20142015 20112015
Localandaccess 832 751 704 646 603 6.6 7.7
Voice Longdistance 617 552 433 414 423 2.3 9.0
Voicesubtotal 1,449 1,303 1,137 1,059 1,026 3.1 8.3
Internet 411 429 444 500 582 16.5 9.1
Newerdataprotocols 307 352 390 435 469 8.0 11.2
Legacydataprotocols 41 35 30 24 20 15.9 16.3
Wireline Non
Otherdataservices 65 88 94 99 89 9.8 8.1
voice
Datasubtotal 413 475 515 557 578 3.8 8.8
Privateline 737 695 657 628 615 2.0 4.4
Nonvoicesubtotal 1,561 1,599 1,615 1,685 1,776 5.4 3.3
Totalvoiceandnon
Total 3,010 2,901 2,753 2,744 2,802 2.1 1.8
voice
Wireless All All 718 840 953 1,038 1,123 8.1 11.8
All Total All 3,728 3,742 3,706 3,783 3,925 3.8 1.3
Source:CRTCdatacollection
Voicewholesalerevenueshavedeclined8.3%annuallysince2011,whereaswirelinenonvoicerevenues
haveincreased3.3%.ThestrongestrevenuegrowthwasinnewerservicessuchasInternetandmobile
wirelessservices,anddataservicesusingnewerdataprotocolssuchasEthernetandIP.Theseserviceshave
increasedbetween9.1%and11.8%annuallysince2011.
319
Section5.6CMR2016
Figure5.6.1Wholesaletelecommunicationsrevenues,bymarketsector
Wholesaletelecommunicationsrevenues,bymarketsector
89
99
Otherdataservices 94
88
65
1,123
1,038
Wireless 953
840
718
615
628
Privateline 657
695
737
20
24
Legacydataprotocols 30
35
41
469
435
Newerdataprotocols 390
352
307
582
500
Internet 444
429
411
423
414
Longdistance 433
552
617
603
646
Localandaccess 704
751
832
0 200 400 600 800 1,000 1,200
Revenue($millions)
320
Section5.6CMR2016
Figure5.6.2Percentagedistributionofwholesaletelecommunicationsrevenues,bymarketsector(2011vs.2015)
Distributionofwholesale Distributionofwholesale
telecommunicationsrevenues,2011 telecommunicationsrevenues,2015
Wireless Wireless
Other
19% 29%
data
3% Local
Newer Local and
data and access
protocols access Other 15%
8% 22% data
3% Long
Internet Newer distance
11% data 11%
protocols
12%
Long
Privateline Internet Privateline
distance
20% 15% 16%
17%
Source:CRTCdatacollection
Thesechartscomparethepercentagedistributionofwholesaleservicerevenuesbetween2011and2015.
Duringthisperiod,revenuesfrommobilewirelesswholesaleserviceshaveincreasedasapercentageoftotal
wholesalerevenues,from19%in2011to29%2015.Theymakeupthelargestpercentageofwholesale
revenues,followedbylocalandaccessandprivateline.
Table5.6.3Localwholesaletelecommunicationsrevenues,bymajorcomponent($millions)
Growth(%) CAGR(%)
Component 2011 2012 2013 2014 2015
20142015 20112015
Interconnection 254 220 212 198 192 2.9 6.7
Centrex 88 76 64 57 50 12.5 13.2
PSTNaccess 354 327 304 283 263 7.1 7.2
Unbundledloops 60 47 44 40 37 7.6 11.4
Otherrevenues 42 44 42 52 42 19.8 0.2
Total 798 714 665 629 584 7.2 7.5
Source:CRTCdatacollection
Thistabledisplayslocalandaccesswholesalerevenuesbymajorcomponent.Providersof
telecommunicationsservicesusethesecomponentstoprovideretailtelecommunicationsservice.For
example,unbundledloopscanbeusedbyanalternativeserviceprovidertoprovidelocaltelephoneserviceto
itsretailcustomers.Inaddition,interconnectionallowsthecustomersofoneserviceprovidertocontactthe
customersofanotherserviceprovider.
321
Section5.6CMR2016
Table5.6.4Localwholesaletelecommunicationsrevenues,byprovince($millions)
Growth(%) CAGR(%)
Province 2011 2012 2013 2014 2015
20142015 20112015
BritishColumbia 77 60 44 59 53 10.2 8.9
Alberta 87 58 58 45 62 37.8 8.1
Saskatchewan 9 8 9 8 8 0.0 2.9
Manitoba 32 31 28 19 15 21.1 17.3
Ontario 357 341 302 274 247 9.9 8.8
Quebec 194 174 176 174 159 8.6 4.9
NewBrunswick 17 17 17 16 20 25.0 4.1
NovaScotia 22 22 24 29 25 13.8 3.2
PrinceEdwardIsland 2 2 3 3 1 66.7 15.9
Newfoundlandand
9 9 10 10 10 0.0 2.7
Labrador
Yukon 1 1 1 1 1 0.0 0.0
NorthwestTerritories 1 1 1 1 1 0.0 0.0
Nunavut 0 0 0 0 0
Total 809 725 674 638 602 5.6 7.1
Source:CRTCdatacollection
Thistableshowslocalwholesalerevenuesbyprovincebycompanieswithannualrevenuesgreaterthan$100
million.Revenuesincludewholesalerevenuesfromthesaleandrentalofterminalequipment.
322
Section5.6CMR2016
Figure5.6.3WholesaleHSAbasedsubscriptionsacrossCanada,2015
WholesaleHSAbasedsubcriptionsacrossCanada,2015
RestofCanada
6%
Quebec
23%
Ontario
71%
TheCommissionhasmandatedthatDSLandcablefacilitiesbemadeavailabletothirdpartyproviders
utilizingthewholesaleHSAframework.Theusageoftheseservicesvariesgreatlydependingontheregion,
withindependentISPwholesalefacilitiesbasedcompetitionbeingmuchmoresuccessfulinOntarioand
Quebec.
323
Section5.6CMR2016
Table5.6.5Internetrelatedwholesalerevenues,bytypeofservice($millions)
Growth(%) CAGR(%)
Typeofservice 2011 2012 2013 2014 2015
20142015 20112015
Highercapacityaccessandtransport 53 45 52 73 77 5.2 9.8
Lowercapacityaccess 266 303 336 369 447 21.2 13.9
Otherwholesaleservices 92 81 56 58 58 0.9 10.8
Wholesaletotal 411 429 444 500 582 16.5 9.1
Source:CRTCdatacollection
InternetrelatedWholesalerevenuesconsistofservicesthatprovideaccessforTSPstotheInternet,toallow
TSPstoconnectdirectlytotheirsubscribers,ortoprovideInternetrelatedequipment,applicationsorother
miscellaneousservices.Intheabovetable,theyaredividedintothreecategories.
InHighercapacityaccessandtransport,referstofibrebasedInternetaccessservicesandthe
transferofInternettrafficbetweennetworks.
LowercapacityaccessincludesservicesthatconnectTSPsdirectlytotheirendusers,typicallyfor
thepurposeofprovidingInternetaccess.ThisincludeswholesaleDSLandCable(TPIA)servicesunder
thewholesalehighspeedaccess(HSA)framework.ItalsoincludessalesofnonfibreInternet
connectivitybetweenTSPs.
Otherwholesaleservicesincludessalesandrentalequipment,applications,andotherInternet
relatedservicesbetweenTSPs.
Table5.6.6WholesaleHSArevenues,byservicecomponent($millions)
Growth(%) CAGR(%)
Servicecomponent 2013 2014 2015
20142015 20132015
Access 200 213 250 17.1 11.0
Capacity 54 107 158 48.1 74.4
Interfaceandother 33 27 29 8.7 3.1
TotalwholesaleHSAservices 287 347 437 26.0 21.4
Source:CRTCdatacollection
TheCommissionhasmandatedthatDSLandcablefacilitiesbemadeavailabletothirdpartyproviders
utilizingthewholesaleHSAframework.WholesaleHSAhasthefollowingcomponents:
Access,whichispaidpermonthforeachendusercustomerthattheyserviceviawholesaleHSA.It
mayormaynotincludeachargefortheassumedamountofcapacityausermayuse.
Capacityisachargethatcanbeleviedbythefacilityownerforcapacityontheirnetworkin
incrementsof100Mbps.
OtherchargesincludeInterfacewhichisthebasicconnectiontothecarrier,andotherfeesfor
servicessuchasinstallationandmodemequipment.
324
Section5.6CMR2016
Table5.6.7DSLandcablewholesalehighspeedaccess,bytypeofservice(thousands)
Growth(%) CAGR(%)
Typeofservice 2011 2012 2013 2014 2015
20142015 20112015
Cableenabledsubscriptions 76 187 305 393 454 15.6 56.3
DSLenabledsubscriptions 468 458 462 480 561 16.8 4.6
TotalDSLandcable 544 645 767 873 1,015 16.3 16.9
Source:CRTCdatacollection
ThevastmajorityoftheabovesubscriptionsarecoveredunderthewholesaleHSAframework,asdescribed
above.Overtime,TSPshavebeenmakingincreaseduseofwholesaleDSLandcablefacilitiestoconnectto
theirendusers.
Figure5.6.4WholesaleHSAenabledsubscriptions,byservicespeedinMbps(thousands)
WholesaleHSAenabledsubscriptions
1,200
58
1,000
18
295
4
Subscriptions(thousands)
800
0 281
212
600 63
110 302
99
180
400
427 435
200 373 359
49 29 17 35
0
2012 2013 2014 2015
Source:CRTCdatacollection
Wholesale HSA services are available at various speeds for enduser access. Over time, TSPs have availed
themselvesofhigherspeedservicestoenableconnectivitytotheirendusers.Theabovesubscriptionsarefor
325
Section5.6CMR2016
residentialandbusinessenduserlocations.Totalsmaynotexactlymatchprevioustablesduetotheuseof
differentdatasources.
Table5.6.8Dataprotocolwholesalerevenues,byservicecategory($millions)
Growth(%) CAGR(%)
Category Subcategory 2011 2012 2013 2014 2015
20142015 20112015
Ethernet 221 225 259 288 299 3.6 7.8
Newer IP 69 99 102 118 142 20.8 19.9
protocols Other 17 28 29 29 28 1.0 13.8
Totalnewerprotocols 307 352 390 435 469 8.0 11.2
Legacy
Total 41 35 30 24 20 15.9 16.3
protocols
Total Totaldataprotocols 348 386 421 458 489 6.7 8.9
Source:CRTCdatacollection
ThedataserviceswereclassifiedasservicesmakinguseofnewerdataprotocolssuchasEthernetandIP,or
legacyprotocolssuchasX.25,ATM,andframerelay.Thistabledisplaystherevenuesfromwholesaledata
servicesbytheprotocolusedintheservicefrom2011to2015.
Table5.6.9Wirelessmobilewholesalerevenues,bytypeofservice($millions)
Growth(%) CAGR(%)
Typeofservice 2011 2012 2013 2014 2015
20142015 20112015
Interconnectionand
607 736 811 892 963 7.9 12.2
roaming
Other 111 105 142 146 160 9.5 9.5
Wholesaletotal 718 840 953 1,038 1,123 8.1 11.8
Source:CRTCdatacollection
Interconnectionandroamingservicesaresoldtootherwirelessserviceprovidersallowingtheserviceprovider
toexchangetheirtrafficandextendtheirgeographiccoveragearea.Otherservicesmainlyconsistof,butare
notlimitedto,arrangementsforawirelessprovidertoprovidewirelessservicesforanothercompanys
customers,alsoknownasresaleorMVNOarrangements.
326
Section5.6CMR2016
ii Subscriberdata
Table5.6.10Localandaccesslines,bytypeofTSP(thousands)
Growth(%) CAGR(%)
TypeofTSP 2011 2012 2013 2014 2015
20142015 20112015
IncumbentTSPs 847 742 683 658 598 9.1 8.3
AlternativeTSPs 135 267 149 68 55 19.1 20.1
Cablebasedcarriers 16 33 5 4 5 25.0 25.2
Total 999 1,042 837 730 657 10.0 9.9
Source:CRTCdatacollection
Thistabledisplaysthenumberoflocalandaccesswholesalelinesbytypeofserviceprovider,aswellas
growthratesandthepercentageofwholesalelinesbytypeofserviceproviderfortheyears2011to2015.
Overthisperiod,incumbentTSPsshareofwholesalelinesincreasedfrom85%in2011to91%in2015.
iii Competitivelandscape
Table5.6.11Wirelinewholesaletelecommunicationsrevenuemarketshare,bytypeofTSP(%)
ThistabledisplayswirelinewholesalerevenuesmarketsharebytypeofTSPsfortheyears2011to2015.Over
thisperiod,IncumbentTSPshavemaintainedthelargestshareofthemarketalthoughtheirsharehassince
decreasedslightly.Withan80%shareofwholesalerevenues,theyhavethelargestshareofthewholesale
market.
Table5.6.12Localandaccessrevenues,bytypeofTSP($millions)
Growth(%) CAGR(%)
Type 2011 2012 2013 2014 2015
20142015 20112015
IncumbentTSPs 794 708 657 625 580 7.2 7.6
AlternativeTSPs 22 34 36 12 16 29.8 8.3
Cablebasedcarriers 17 10 11 9 8 15.5 18.2
Totalwholesale 832 751 704 646 603 6.6 7.7
Source:CRTCdatacollection
Thistabledisplaysrevenuesfromlocalandaccesswholesaleservicesbytypeofserviceprovider,aswellas
growthratesandthepercentageofwholesalerevenuesbytypeofserviceproviderfortheyears2011to2015.
Overthisperiod,incumbentTSPsmaintainedapproximately95%oftheserevenues.
327
Section5.6CMR2016
Table5.6.13Longdistancerevenues,bytypeofTSP($millions)
Growth(%) CAGR(%)
Type 2011 2012 2013 2014 2015
20142015 20112015
IncumbentTSPs 520 461 360 322 343 6.5 9.9
AlternativeTSPs 55 72 59 81 71 12.4 6.6
Cablebasedcarriers 42 18 13 11 9 15.7 31.5
Totalwholesale 617 552 433 414 423 2.2 9.0
Source:CRTCdatacollection
Thistabledisplaysrevenuesfromlongdistancewholesaleservicesbytypeofserviceprovider,aswellas
revenuegrowthratesandthepercentageofwholesalerevenuesbytypeofserviceproviderfortheyears2011
to2015.Overthisperiod,incumbentTSPshadanear10%annualdeclineintheserevenues,whereas
alternativeserviceprovidershadanover6%annualincrease.Wholesalelongdistanceserviceincludesthe
resaleoflongdistanceminutesthatoneserviceproviderhasacquiredfromanotherservicesprovider.
Providersofprepaidlongdistancecallingcardsrelyontheseservices.
328
Section5.6CMR2016
iv Forbearance
Figure5.6.5Telecommunicationswholesaleservicerevenues,bytypeoftariff,2015(%)
Telecommunicationswholesaleservice
revenuesbytypeoftariff(%),2015
Tariff
26%
Offtariff
2%
Nontariff
72%
Source:CRTCdatacollection
Approximately74%ofwholesalerevenueswerefromnontariffservicesandthoseserviceswheretheparties
haveagreedtoanalternateprice.
Tariffservicesareserviceswhoserates,terms,andconditionsaresetoutinaCommissionapprovedtariff.
Nontariffservicesarethosetelecommunicationsserviceswhoserates,terms,andconditionsarenotsetout
inaCommissionapprovedtariff.
OfftariffservicesarethosewhosepricesarefiledwiththeCommissionbutforwhichthepartieshaveagreed
toanalternateprice.
Tariffservicesrevenuesnowexcluderevenuesfromofftariffservices.
329
Section5.6CMR2016
Figure5.6.6Telecommunicationswholesaleservicerevenues,bytypeofservice,2015(%)
Telecommunicationswholesaleservicerevenues,
bytypeofservice,2015
Highspeedaccess
(WholesaleHSA)services
Localand 11%
accessservices
16%
Privateline
andEthernet
services
24%
Other Support
47% structures
2%
Source:CRTCdatacollection
Thischartdisplaysthepercentageofrevenuesfromwholesaleservicesbytypeofwholesaleservice.For
purposesofthischart,supportstructurerevenuewasincludedinwholesalerevenues.
Table5.6.14Percentageoftelecommunicationswholesalerevenuesgeneratedbyforborneservices(%)
Thistabledisplaysthepercentageofwholesaletelecommunicationsrevenuesfromservicesthatarenot
provisionedinaccordancewithaCommissionapprovedtariff.
330
Section5.6CMR2016
v Interproviderexpenses
Wholesaleservicerevenuesaretheinterproviderexpensesofprovidersoftelecommunicationsservices
acquiringtheseservices.Allcompaniespurchasetelecommunicationsservicesfromanothercarrier.The
extenttowhichserviceprovidersrelyontheseservicesdependsonthenatureoftheiroperations.
Figure5.6.7Interproviderexpensesperrevenuedollarforwirelineservices,2014and2015
Interproviderexpensesperrevenuedollarforwirelineservices,
2014and2015
60.0
50.0 48.1
45.5
40.0
31.0
cents
30.0 28.3
20.0
0.0
SILECs ILECs Cable Otherfacilities Resellers
based
2014 2015
Source:CRTCdatacollection
Thistableshowstheextenttowhichvariousprovidersoftelecommunicationsservicesrelyonwholesale
services.Intotal,facilitiesbasedprovidersoftelecommunicationsservicespendlessthan7centsofevery
revenuedollaronwholesaletelecommunicationsservices,whereasresellersserviceprovidersthatdonot
ownoroperatetransmissionfacilitiesareverydependent.Theyspend46centsofeverydollaronthese
services.
InterproviderexpenseperrevenuedollarcomparestheexpensesincurredbyaTSPinacquiring
wholesaleservicestoitstelecommunicationsrevenuesforwirelineservices.
331
Section5.6CMR2016
Itisderivedbydividingtotalannualinterproviderexpensesbyannualtelecommunications
revenues.Thiscalculationincludesallrevenuesfromtelecommunicationsservices,including
revenuesfromtelecommunicationsservicesrequiringlimiteddependencyonwholesaleservices.
Providerswhoomittedinterproviderexpenseswereeliminatedfromconsideration.
332
Appendix1CMR2016
A.1 Methodology
Thisreportisbasedon(1)theresponsesfrombroadcastingandtelecommunicationsundertakingstothe
CRTCsannualsurveys,issuedjointlybyStatisticsCanadaandtheCRTC(referredtocollectivelyasCRTCdata
collection);(2)datacollectedfromothersources,includingStatisticsCanada,Innovation,Scienceand
EconomicDevelopmentCanada(ISED),companyspecificfinancialreports,Numeris,andtheMedia
TechnologyMonitor(MTM)reports;and(3)informationpreviouslyfiledwiththeCRTCinthecontextof
regulatoryproceedings.Unlessotherwisenoted,allbroadcastingdatainthisreportareforthe12month
periodending31Augustfortheyearsquoted,whereasalltelecommunicationsdata,includingInternet
servicedata,areforthe12monthperiodending31Decemberfortheyearsquoted.
Broadcastingrelateddataisreportedascollected,whilesometelecommunicationsdatamaybeadjustedor
estimatedforunderreporting.
Withrespecttoresidentialbroadbandavailabilitydata,theCommissioncoordinateswithISEDtocollectdata
ontheavailabilityofbroadbandInternetaccessservicestoCanadians.TheCommissionhascollaboratedwith
theprovincialandterritorialgovernments,aswellasotherfederalgovernmentagenciesanddepartments,to
identifycommunitiesthatdonothaveaccesstobroadbandservices.Theresultingdatawillassistthefederal,
provincial,andterritorialgovernmentsinanalyzingthebroadbandavailabilityperformanceinbothurbanand
ruralcommunities.Combiningthesedatacollectioninitiativesenablesthereportingburdenontheindustry
tobereduced,uniformdefinitionsandmethodologiestobeemployed,andthequalityofthedatapresented
inthisreporttobeenhanced.
Certainfigurespublishedinpreviousyearsmonitoringreportshavebeenrestatedinthisyearsreportto
betterreflectthedevelopmentsinthemarketsorindustryandtoallowforamoremeaningfulcomparison.
Otherfiguresmayhavechangedasaresultofserviceprovidersresubmittingpreviousyearsdata.
333
Appendix1CMR2016
334
Appendix2CMR2016
A.2 Datacollectionandanalysis
i Datacollection
StatisticsCanadacollectsdataundertheauthorityoftheStatisticsAct,andtheCRTCcollectsdataunderthe
authorityoftheBroadcastingActandtheTelecommunicationsAct.StatisticsCanadausesthedatatodevelop
nationalaccounts.TheCRTCusesthemtomonitorthebroadcastingandtelecommunicationsindustries
performanceandadherencetoregulations,aswellastheoveralleffectivenessoftheCRTCsregulatory
frameworks.Thedataareusedinthedevelopmentofpolicyandregulationbyavarietyofstakeholders.Data
collectedareusedtomeasurethefinancialperformanceofbroadcastingandtelecommunicationsservice
providersandtomaintainandupdatetheCRTCsdataontheadministrationofbroadcastingand
telecommunicationsfees.Dataarecollected,tovaryingdegrees,fromallbroadcastingand
telecommunicationsserviceprovidersundertheregulationandsupervisionoftheCRTC.Theseservice
providersoperateprivateandpublicradio,television,andbroadcastingdistributionservices;pay,payper
view,videoondemand,andspecialtyservices;andwirelineandwirelesstelecommunicationsservices.
Broadcastingserviceproviders(alsoknownasbroadcastinglicensees)andtelecommunicationsservice
providerscompleteannualsurveysoutliningfinancialinformationandquantitativedataforeachbroadcast
andcalendaryear,respectively.Thedatacollectedarepublishedinannualfinancialandstatisticalsummaries
ofrevenuesand,inthecaseofbroadcastinglicensees,expenditures,suchasexpendituresonCanadian
programming.SummariesofbroadcastinglicenseesdataarepreparedandpublishedontheCRTCswebsite
athttp://www.crtc.gc.ca/eng/stats.htm.ThedatacollectedarealsousedtoproducetheCRTCs
CommunicationsMonitoringReport.
Broadcastingregulationsrequirebroadcastingserviceproviderstocompleteanannualsurvey.The
TelecommunicationsActrequiresprovidersoftelecommunicationsservicestoprovidedatauponrequestby
theCRTC.BothtypesofserviceprovidersaccessandsubmitthesurveyformselectronicallyusingtheCRTCs
securewebbasedDataCollectionSystem(DCS).
Thebroadcastingsurveycoversthe12monthperiodending31Augustofeachyear.Allbroadcastingservice
providershaveuntil30Novembertocompleteandsubmittheirannualsurveyforms.The
telecommunicationssurveycoversthe12monthperiodending31Decemberofeachyear.
Telecommunicationssurveyformsthatrequestdataaboutfacilitiesandthepriceofservicesarelaunchedin
January,andtherespondentshaveuntil28Februarytocompleteandsubmitthem.Theremaining
telecommunicationssurveyformsarelaunchedinFebruary,andtherespondentshaveuntil30Marchto
completeandsubmitthem.
Aspartofthebroadcastingsurvey,commercialradiobroadcastersmustreportontheircontributionsto
Canadiancontentdevelopment(CCD).Broadcastingdistributionundertakings(BDUs)mustsubmit
informationregardingtheircontributionstothecreationandproductionofCanadianprogramming.This
informationenablestheCRTCtoensurethatbroadcastersarecomplyingwiththeirconditionsoflicenceor
regulatoryrequirementsinthisregard.
335
Appendix2CMR2016
Aspartofthetelecommunicationssurvey,theCRTCrequiresprovidersoftelecommunicationsservicesto
maintainandupdatetheirdataonregistrationlists,andtoprovidedatafortheoperationoftherevenue
basedcontributionregimeandtheassessmentoftelecommunicationsfees.Thetotalannualrevenuesfrom
theprovisionoftelecommunicationsservicesinCanadaarealsousedtoassesstheeligibilityofcarriersto
operateastelecommunicationscommoncarriersundersection16oftheTelecommunicationsAct.
ii Dataanalysis
TheCRTCanalyzesthesurveydatatoensurethattheinformationprovidedisaccurateandcomplete.Year
overyearcomparisonsaremadetoidentifyanysignificantorunexplainedchanges,andtheCRTCfollowsup
withrespondentsasrequiredtoresolveorobtainexplanationsofanyanomalies.TheCRTCalsosubjectsthe
datatocomputerizededitsdesignedtoensureaccuracyandinternalconsistency.Whennecessary,theCRTC
comparesreporteddatawithauditedfinancialinformation.Thedataortheirderivatives(suchasaverage
revenuesperlineorperminute)arealsocomparedwithestablishedbenchmarks.
Theobjectivesofthisanalysisareasfollows:
Toensuretheaccuracyandvalidityofthedatacollectedinorderto(a)provideCanadianswithhigh
qualitydatatosupporttheirparticipationinCRTCprocessesandtheirinformeddecisionmaking,and
(b)supporttheCRTCsevidencebaseddecisionmakingprocess;
Toallowfortheanalysisoftrendsinthemajorcategoriesofrevenueandexpenditureslistedinthe
annualformsoverafiveyearperiod,particularlywithreferencetothepreviousyear;
ToallowtheCommissiontoreconcileactualexpenditureswithregulatoryrequirements;
Toensurethatthesummaryoffinancialdataforoperationsconnectedtobroadcastinglicensees,
includedintheannualreturns,correspondstothedatapresentedinthefinancialstatements
requiredofbroadcastinglicenseesinaccordancewiththeregulationsreferencedinCircularNo.404;
and
TomaintainuptodateregistrationlistsofprovidersoftelecommunicationsservicesontheCRTC
website.
Revisionsmaybemadetothedatasubmitted,andtothisreport,aftertheyarepublished.Theserevisions
aregenerallytheresultoflatereceiptofdata,modificationsmadebytherespondentstopreviouslyfiled
data,orerrorsdetectedfollowingdatapublication.Finally,certainfigurespublishedintheCommunications
MonitoringReportfrompreviousyearsmayberestatedforconsistencypurposes.Bywayofexample,such
restatementscanresultfromreclassificationsundertakenwithaviewtobetterreflectmarketsegmentsor
industrydevelopments.Historically,revisionshavegenerallynothadamajorimpactontheresultsofthe
datacollectionprocess.
336
Appendix2CMR2016
MostofthetablesandfiguresincludedinthisreportarederivedfromthedatasubmittedviatheDCS,while
othersarederivedusingdatafromStatisticsCanadaandInnovation,ScienceandEconomicDevelopment
Canada(ISED)orfromotherthirdpartyreports.Inconsistenciesmayarisebetweendatasources,giventhat
thecompaniessurveyed,thedefinitionsused,andthelevelofdetailrequestedmaydifferforeachsource.
Thedatasourceisthereforeidentifiedbeneatheachtableandfigureinthereport.
337
Appendix2CMR2016
338
Appendix3CMR2016
A.3 Glossary
Disclaimer:thesedefinitionsareprovidedforinformationpurposesonlyandarenotlegally
binding.
i Broadcasting
Abusivecomment:Acommentthat,whentakenincontext,tendstoorislikelytoexposeanindividualora
grouporclassofindividualstohatredorcontemptonthebasisofrace,nationalorethnicorigin,colour,
religion,sex,sexualorientation,ageormentalorphysicaldisability.
AdvertisingStandardsCanada:Anational,notforprofitadvertisingselfregulatorybodythatrespondsto
complaintsbyconsumersandspecialinterestgroupsregardingadvertisingwithrespecttoallmediasubject
totheCanadianCodeofAdvertisingStandards,theprincipalinstrumentofadvertisingselfregulation.In
addition,itundertakespreclearancefunctionsinfiveindustrycategories,whichconsistofreviewing
advertisementsbasedonapplicablelegislation,regulations,and/orindustrycodesandguidelines.Additional
informationontheASCcanbefoundat:www.adstandards.com/en/
Affiliationpayment:Theremunerationthatprovidersofdiscretionaryprogrammingservicesreceivefrom
broadcastingdistributionundertakingsthatdistributetheirservices.
Audioservices:Includesmultichannelsubscription(satelliteradio)services,payandspecialtyaudio
services,overtheairradiostations,andvideoservicesbroadcastovercableandtheInternet.
Basicservices:Basicserviceistheservicedistributedinalicensedareabyabroadcastingdistribution
undertakingasapackageconsistingofprogrammingserviceswhosedistributionisrequiredbythe
Commission.
Broadcastingsector:Radio,televisionanddistributionundertakings,comprisedofpublic,privateand
communityelements.
Broadcaster:Anentitythatcontrolsanundertakingthatbroadcastsprogramming.
Broadcastingdistributionundertaking:ProvidersofsubscriptiontelevisionservicetoCanadiansby
redistributingprogrammingfromconventionalovertheairtelevisionandradiostations.Theyalsodistribute
payaudio,paytelevision,payperview,videoondemand,andspecialityservices.Examplesincludecable
(deliveredthroughcoaxialcables),satellite,andInternetProtocolTelevision(IPTV).
CanadaMediaFund(CMF):Afundthatfosters,promotes,developsandfinancestheproductionof
Canadiancontentandrelevantapplicationsforallaudiovisualmediaplatforms.Itsfinancingisobtainedfrom
governmentandprivatesources.AdditionalinformationontheCMFcanbefoundat:http://www.cmf
fmc.ca/
339
Appendix3CMR2016
CanadianBroadcastStandardsCouncil:AnindependentorganizationcreatedbytheCanadianAssociationof
BroadcasterstoadministerstandardsestablishedbyCanadasprivatebroadcasters.Itsmembershipincludes
morethan790privatesectorradioandtelevisionstations,specialtyservices,payservices,andnetworks
fromacrossCanada,broadcastinginEnglish,French,andthirdlanguages.AdditionalinformationontheCBSC
canbefoundat:http://www.cbsc.ca/
Canadiancontentdevelopment(CCD)contributions:Financialcontributionsmadebybroadcastersto
initiativesthataidinthedevelopmentandpromotionofCanadianmusicalandspokenwordcontentfor
broadcast.
Canadianprogrammingexpenditures(CPE):Theproportionofgrossannualbroadcastingrelatedrevenues
thatalicenseeisrequired,byconditionoflicence,tospendontheproductionofCanadianprogrammingfor
broadcast.
CategoryA/B/Cservices:CategoryAAservicethatfocusesonaspecificgenre(forexample,music,
childrensprogramming,weather,comedyprogramming).Itisprotectedfromcompetitionfromnon
CanadianservicesandCategoryBservices.Allbroadcastingdistributionundertakingsmustcarrythese
services.CategoryBAservicethatfocusesonaspecificgenre,thatisnotcompetitivewithanyCategoryA
orCategoryCservice.CategoryBservicesdonothaveanyspecificcarriagerights.CategoryCAservicethat
operatesineitherofthecompetitivegenresofnationalnewsormainstreamsports.Therearenospecific
carriagerightsforCategoryCSportsservices.CategoryCNewsservicesmustbemadeavailableinthebest
possiblediscretionarypackageconsistentwiththeirgenre.Theymustalsobemadeavailabletosubscribers
onastandalonebasis.
Cutthecord: Theprocessofcuttingcableconnectionstochangetolowcosttelevisionthroughoverthe
airfreebroadcastviaantennaoronlinevideoservicebroadcastovertheInternet.
Discretionaryservices:Aprogrammingservicethatisnotincludedinthebasicserviceandthatisdistributed
tosubscribersonadiscretionarybasisforafeeseparatefromandinadditiontothefeechargedforthebasic
service.
Independentproductionfunds:Establishedthirdpartyfundsthatsupportcreatorsofavarietyof
programmingandothercontent.Theyhelpensurethatcreatorshaveaccesstofinancialandothersupport,
includingsupportfornationalandinternationalpromotion,acrossallaudiovisualplatforms.Canadian
independentproductionfundsarecertifiedbytheCommissionaccordingtocriteriaannouncedin
ContributionstoCanadianprogrammingbybroadcastingdistributionundertakings,BroadcastingRegulatory
PolicyCRTC2010833,9November2010.
Internetaudio:ListeningorstreamingaudioservicesavailableovertheInternet.
InternetProtocoltelevision(IPTV):InternetProtocoltelevisionisasystemthroughwhichtelevisionservices
aredeliveredusingInternetprotocoloveraprivate,managednetworkasopposedtotraditionalovertheair
(OTA),cabletelevisionorsatellite.
Internetradio:ListeningorstreamingAM/FMradiostationsavailableovertheInternet.
340
Appendix3CMR2016
LocalProgrammingImprovementFund(LPIF):Afunddesignedtoimprovethequalityoflocalprogramming
innonmetropolitantelevisionmarketsacrossCanada.ItwasdiscontinuedinAugust2014.
Multichannelsubscriptionservice(MDS):InthecontextoftheCommunicationsMonitoringReport,refers
tosubscriptionsatelliteradioservices.
Nonbasicservices:Nonbasicserviceistheservicedistributedinalicensedareabyabroadcasting
distributionundertakingconsistingofprogrammingserviceswhosedistributionisnotrequiredbythe
Commission.
Numeris:ACanadianaudiencemeasurementorganization;theprimaryproviderofviewershipnumbersfor
televisionandradiooutletsinCanada(formerlytheBureauofBroadcastMeasurement,orBBMCanada).
Offensivecomment:Acommentexpressingoffensivehumourorothercommentsthatdonotfallunderthe
abusivecommentprovisioninCRTCregulations.
Offensivelanguage:Offensivelanguageinsonglyricsorinspokenwordprogramming.
OnDemandservices:Asystemthatallowsuserstoselectandwatch/listentovideooraudiocontentwhen
theychooseto,ratherthanhavingtowatchataspecificbroadcasttime(forexample,avideoondemandor
payperviewservice).
Overtheair(OTA)televisionservice:AtelevisionservicethatmaybeaccessedbyCanadianswiththeuseof
anovertheairantenna.
Paytelevisionservices:Generally,aservicethatprovidescommercialfreemoviesandseriesprogramming,
andthatisonlyavailablefrombroadcastingdistributionundertakings.
Personalvideorecorder(PVR):Aconsumerelectronicsdeviceorapplicationsoftwarethatrecordsvideoina
digitalformattoadiskdrive,USBflashdrive,SDmemorycard,SSDorotherlocalornetworkedmassstorage
device(alsoknownasdigitalvideorecorder,orDVR).
Portablepeoplemeter(PPM):Asystemthatmeasureshowmanypeopleareexposedorlisteningto
individualradiostationsandtelevisionstations.ThePPMiswornlikeapageranddetectshiddenaudiotones
withinastationornetwork'saudiostream,loggingeachtimeitfindssuchasignal.
Programsofnationalinterest(PNI):TheCRTChasdefinedprogramsofnationalinterest(PNI)asincluding
dramaandcomedy,longformdocumentary,andspecificCanadianawardshowsthatcelebrateCanadian
creativetalent.ForFrenchlanguagebroadcasters,PNIalsoincludemusicvideoandvarietyprograms.Forthe
purposesofthisreport,PNIexpendituresincludeexpendituresinanyofthefollowingprogramming
categories:
longformdocumentary(category2b);
dramaandcomedy(category7);
Frenchlanguagemusic,dance,andvarietyprogramming(categories8and9);and
Englishlanguageawardshows(subsetofcategory11).
341
Appendix3CMR2016
Servicebundle:Agroupofrelatedservicesthataresoldasapackageandprovidefinancialgain.
Tangiblebenefits:Intheabsenceofacompetitiveprocessrelatingtochangesofownershiporeffective
controlofradioortelevisionprogrammingservices,theapplicantisrequiredtomakefinancialcontributions
(calledtangiblebenefits)thatwillyieldmeasurableandsignificantimprovementstotheCanadian
broadcastingsystemasawholeandtothecommunitiesservedbytheservice(s)inquestion.
Tangiblebenefitsareproportionatetothesizeandnatureofthetransactionandmustbeincrementaltothe
normalcostofdoingbusiness.Asageneralrule,applicantsareexpectedtomaketangiblebenefit
contributionsrepresentingapercentage(6%forradioand10%fortelevisionservices)ofthevalueofthe
transactionandareusuallypaidoverafivetosevenperiod.
Tangiblebenefitsisonemeans,usedbytheCommission,ofensuringthebestpossibleproposalbythe
applicantandthatapprovalisinthepublicinterest,consistentwiththeoverallobjectivesoftheBroadcasting
Act.
Videoondemand(VOD):Aservicethatallowsviewerstochoosetheprogramtheywishtowatchandthe
timetheywishtowatchit,andforwhichafeeisgenerallycharged.Thistypeofserviceisavailablefrom
serviceproviders,suchascableorsatellitecompanies,andisincreasinglybecomingavailableoverthe
Internet.
ii Telecommunications
Accessservices:Thefacilitiesrequiredtoconnectasubscribertoacommunicationsnetwork.Examples
includelocaltelephonelinesandbroadbandaccessfacilitiesthatconnecttosubscriberspremises.
BroadbandInternet:HighspeedInternet,withaccessofatleast1.5Mbps.
Churnrate:Ameasureofthenumberofcustomersaserviceproviderlosesonamonthlybasisrelativeto
thatserviceproviderstotalsubscriberbase.Itiscalculatedbydividingthenumbersofcustomersthathave
cancelledserviceinamonthbythetotalnumberofsubscribersforthatserviceprovider.
CommissionerforComplaintsforTelecommunicationsServices(CCTS):TheCCTSisanindependent
organizationdedicatedtoworkingwithconsumersandserviceproviderstoresolvecomplaintsabout
telephoneandInternetservices.ItsstructureandmandatewereapprovedbytheCRTC.TheCCTShandles
complaintsaboutmosttelecommunicationsservicesprovidedtoindividualsandsmallbusinesses,including
homephone,wireless,Internet,andVoIPservices.CCTSisalsoresponsibleforadministeringtheWireless
Code.AdditionalinformationontheCCTScanbefoundat:https://www.cctscprst.ca/
Connections:Accesstooneormorecommunicationsservices,suchaslocaltelephoneservices,Internet
accessservice,wirelessservice,andbroadcastdistributionservices.Wirelessservicecanbeeithermobileor
fixed.Broadcastdistributioncanbecable,satellitedirecttohome,orIPTV.
342
Appendix3CMR2016
Dedicatedmobilebroadbanduser:Auserwhosubscribestoadataonlyplanforaccessdataservicesona
mobilenetwork.Thesedataplansubscriptionsarepurchasedseparatelyfromvoiceservices,eitherasa
standaloneservicesubscription(hub,dongle,stick,orcellularmodem)orasaseparatesubscriptiondata
packagetoavoiceserviceplan.
Fixedwireless:Awirelessnetworkthatuseseitherlicensedorunlicensedspectrumtoprovide
communicationsservices(voiceand/ordata),wheretheserviceisintendedtobeusedinafixedlocation.
Forbearance:Theactionofrefrainingfromregulation.
HSPA/HSPA+/LTE:HighsSpeedPacketAccess(HSPA)andLongTermEvolution(LTE)aretheprotocolsor
standardsusedforcommunicationsbetweenamobilephoneandcelltowersinmobilenetworks.HSPAis
alsoreferredtoas3G(thirdgeneration)cellularwhileLTEisreferredtoa4G(fourthgeneration)cellular.LTE
isthecurrentstandardthatisnowwidelydeployedinmostmobilenetworks.HSPA+,orevolvedHighsSpeed
PacketAccess,isaformofHSPAthatusestechnicalmeasurestoprovidefastertransmissionspeeds.
Latency:Delaybetweentransmissionandreceiptofsignal.
Machinetomachine(M2M)communication:Networkingofintelligentcommunicationsenabledremote
devicesthatpermitinformationtobeautomaticallycollectedorexchangedwithouthumanintervention.For
example,vendingmachinesreportinginventorylevels.
Megabitspersecond(Mbps):Atheoreticalunitofmeasurementofthespeedfordatatransferovera
transmissionmedium(e.g.copper,coaxialcable,fibreoptics,orwireless),consistingof1,000,000bitsper
secondor125,000bytespersecondwhereabyteconsistsof8bits.
Networkrelatedcapitalexpenditures:Moneythatisspentoncommunicationsnetworks(e.g.landline,
cable,andwireless)forequipment,labour,software,etc.that,inaccordancewithaccountingpractices,can
becapitalizedinacompanysfinancialrecords.
Packet:Aunitofdataformattedfortransmissiononanetwork.Dataisbrokenupintopacketsforsending
overapacketswitchingnetwork.Eachpackethasaheadercontainingitssourceanddestination,ablockof
datacontent,andanerrorcheckingcode.Allthedatapacketsrelatedtoamessagemaynottakethesame
routetogettotheirdestination;theyarereassembledoncetheyhavearrived.
Paging:AservicethatallowstransmittingasignalviaradiofromanytelephoneinthePSTNtoapersonal,
portablereceivingdeviceinadefinedoperatingarea.Moresophisticatedsystemsprovideaudibleorvisual
displaymessages.
Peering:AsettlementfreeexchangeofroutingannouncementsbetweentwoInternetserviceprovidersfor
thepurposeofensuringthattrafficfromthefirstcanreachcustomersofthesecond,andviceversa.
Privateline:Atransmissionfacilitythatcarriesdedicatedcommunicationsbetweentwoormorepoints.A
privatelineisnotconnectedtothePSTN(publicswitchedtelephonenetwork)andthecommunications
carriedovertheprivatelinearenotswitched.
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Appendix3CMR2016
Roaming:Aserviceofferedbymobilecommunicationsnetworkoperatorswhichallowsasubscribertouse
herorhisterminalwhileintheserviceareaofanotherserviceprovider.Usuallymeasuredbyminuteorby
message,roamingnormallyinvolvesatleasttwocharges,anenduserretailchargepaidbytheendusertoa
serviceprovider,andanintercarrierretailchargepaidfromoneserviceprovidertoanotherfornetworkuse.
SatelliteInternetservices:AccesstotheInternetcanbefacilitatedinremoteareasbyusingsatellite
transportintwoways.Oneisadirecttohomeservicewhereasubscriberhasasmallantenna(typicallyin
theKaband)attheirpremises.Theotheriswhereaprovideroftelecommunicationsserviceshasan
agreementwithasatelliteoperatorforsatellitetransportservices(typicallyintheCband,whichrequires
largeantennas)thatisconnectedtoaterrestriallybaseddistributionsysteminacommunity.Typically,
accesstoInternetservicesviasatelliteisonlyusedincommunitieswherethereisnosuitableterrestrially
basedtransmissionservice.
ShortMessageService(SMS)/MultimediaMessagingService(MMS):SMSisatextmessagingservicethat
usesstandardizedcommunicationsprotocolstoallowphones(typicallymobilephones)toexchangesshort
textmessages.Duetothemethodologyusedtotransmittextmessagesovermobilewirelessnetworks,these
messagesarerestrictedinlengthto140octets(whereanoctetis8bits).Messagesofalongerlengthare
brokendownbythesendingdeviceintoSMSof140octetsthataresubsequentlyreassembledintothe
completemessagebythereceivingdevice.MMSexpandsthecoreSMScapabilitytoallowthesendingof
multimediacontentsuchaspictures,shortvideoclips,newsandentertainmentcontent,ormarketing
materialsuchascouponsandproductimages.
Standardmobilebroadbanduser:Anindividualwhoownsasmartphoneoraregularcellphonewitha
subscriptiontoadataandvoiceplan.(Mobilephoneplanswithbrowsingonlyareexcludedfromthis
category.)
Tariff/Nontariff/Offtariffservices:Tariffservicesareserviceswhoserates,terms,andconditionsareset
outinaCommissionapprovedtariff.Nontariffservicesarethosetelecommunicationsserviceswhoserates,
terms,andconditionsarenotsetoutinaCommissionapprovedtariff.Offtariffservicesarethosewhose
pricesarefiledwiththeCommissionbutforwhichthepartieshaveagreedtoanalternateprice.
VoiceoverInternetProtocol(VoIP):VoIPisadigitalcommunicationstechnologymakesuseofIPpackets
carriedoverpacketswitchednetwork(s).TherearegenerallytwotypesofnetworksusedforVoIPservices.
Thefirstistheopen/publicInternetandtheotherisdedicatedormanagedIPnetworksoperatedbycarriers
suchascablecompanies,usuallyreferredtoasaccessdependentVoIP.WhenthepublicInternetnetworkis
usedforVoIPservice,thisisreferredtoasaccessindependentVoIP.
Wholesaleservices:Inthecontextoftelecommunicationsservices,provisionofatelecommunications
serviceorfacilitytoaserviceprovider,regardlessofwhetherthatserviceproviderrebillstheserviceor
facilitytoanotherentity,orusesthatserviceorfacilityinternallytosupporttheservicesitbills.
WiFihotspot:Aphysicallocationthatoffers,throughalocalareawirelesscomputernetworking(WiFi)
technology,Internetaccessoverawirelesslocalareanetworkthroughtheuseofarouterconnectedtoalink
toanInternetserviceprovider.
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Appendix3CMR2016
iii Other
Compoundannualgrowthrate(CAGR):Theyearoveryeargrowthrateofanamountoveraspecified
periodoftime.
EarningsBeforeInterest,Taxes,Depreciation,andAmortization(EBITDA):EBITDAisanaccountingmeasure
calculatedusingacompanysnetearningsbeforedeductinginterest,taxes,depreciation,andamortization.
EBITDAisameasureoftheperformanceofacompanyscurrentoperationswithitscurrentassets,asitisa
measureofacompanysprofitabilitybeforetheeffectsoffinancingareconsidered.
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Appendix4CMR2016
A.4 Listofacronymsusedinthereport
ARPU averagerevenueperuser
ASC AdvertisingStandardsCanada
ATM asynchronoustransfermode
AWS advancedwirelessservice
BDU Broadcastingdistributionundertaking
CAGR compoundannualgrowthrate
Capex capitalexpenditure
CBC CanadianBroadcastingCorporation
CBSC CanadianBroadcastStandardsCouncil
CCD CanadianContentDevelopment
CCTS CommissionerforComplaintsforTelecommunicationsServices
CMF CanadianMediaFund
CPE Canadianprogrammingexpenditures
CPI ConsumerPriceIndex
CRTC,theCommission CanadianRadiotelevisionandTelecommunicationsCommission
DCS Datacollectionsystem
DSL digitalsubscriberline
DTH directtohome
EBITDA earningsbeforeinterest,taxes,depreciationandamortization
FTTH fibretothehome
FTTP fibretothepremises
FTTN fibretothenode
GB gigabyte
HSA highspeedaccess
HSDS highspeeddigitalservice
HSPA highspeedpacketaccess
HSPA+ evolvedhighspeedpacketaccess
ICT Informationandcommunicationstechnology
IP InternetProtocol
IPTV InternetProtocoltelevision
IPVPN InternetProtocolvirtualprivatenetwork
ISDN integratedservicesdigitalnetwork
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Appendix4CMR2016
ISP Internetserviceprovider
Kbps kilobitspersecond
LAN localareanetwork
LPIF Localprogrammingimprovementfund
LTE longtermevolution
MB Megabyte
Mbps megabitspersecond
MDS multipointdistributionservice
MMS multimediamessagingservice
MTM MediaTechnologyMonitor
MVNO mobilevirtualnetworkoperator
M2M Machinetomachine
n/a notavailable
NAS Networkaccessservice
PBIT profitbeforeinterestandtaxes
PNI programsofnationalinterest
PPM portablepeoplemeter
PPV payperview
PSTN publicswitchedtelephonenetwork
PVR personalvideorecorder
RDU radiocommunicationdistributionundertaking
SMS shortmessageservice
TPI telephonepriceindex
TPIA thirdpartyInternetaccess
TSP telecommunicationsserviceprovider
TTY teletypewriter
VOD videoondemand
VoIP voiceoverInternetProtocol
WAN wideareanetwork
WSP wirelessserviceprovider
3G thirdgeneration
4G fourthgeneration
348
Appendix5CMR2016
A.5 Circulars,decisions,publicnotices,orders,
noticesofconsultation,regulatorypoliciesandcodes
referencedinthereport
CircularNo.404 RequirementsfortheFilingofFinancialStatementswith
theBroadcastingAnnualReturn,Circular
No.404,23August1994
BroadcastingDecision2010782 ChangeintheeffectivecontrolofCanwestGlobal
CommunicationsCorp.slicensedbroadcasting
subsidiaries,BroadcastingDecisionCRTC2010782,22
October2010
BroadcastingDecisionCRTC2010942 Transferofeffectivecontrolofvariouscommercialradio
programmingundertakingsfromCorusEntertainmentInc.
toCogecoinc.,BroadcastingDecisionCRTC2010942,17
December2010
BroadcastingDecisionCRTC2011163 ChangeineffectivecontrolofCTVglobemediaInc.s
licensedbroadcastingsubsidiaries,BroadcastingDecision
CRTC2011163,7March2011
BroadcastingDecisionCRTC2012394 GlobalNewsPlusBCSpecialtyCategoryBservice,
BroadcastingDecisionCRTC2012394,20July2012
BroadcastingDecision2013207 TheScoreChangeineffectivecontrolandlicence
renewalandamendment,BroadcastingDecisionCRTC
2013207,30April2013
BroadcastingDecision2013283 TVtropolisAcquisitionofassets,BroadcastingDecision
CRTC2013283,11June2013
BroadcastingDecision2013310 AstralbroadcastingundertakingsChangeofeffective
control,BroadcastingDecisionCRTC2013310,27June
2013
BroadcastingDecision2013530 CityNewsChannel(formerlyknownasCITYNews
(Toronto))Revocationoflicence,BroadcastingDecision
CRTC2013310,1October2013
BroadcastingDecision2013737 TELETOON/TLTOON,TELETOONRetro,TLTOONRtro
andCartoonNetworkChangeofeffectivecontrol;
TELETOON/TLTOON,TELETOONRetroandTLTOON
RtroLicencerenewalandamendment,Broadcasting
DecisionCRTC2013373,20December2013
BroadcastingDecision2013738 HistoriaandSries+Acquisitionofassetsandchangein
effectivecontrolBroadcastingDecisionCRTC2013738,20
December2013
BroadcastingDecision201462 ChangeofeffectivecontrolFollowuptotheAstralBCE
transaction,BroadcastingDecisionCRTC201462,17
February2014
349
Appendix5CMR2016
BroadcastingDecision2014388 ChangeintheeffectivecontrolofDisneyJunior,DisneyXD
andFamilyChannelfromBellMediaInc.toDHXMedia
Ltd.andlicenceamendments,BroadcastingDecisionCRTC
2014388,24July2014
BroadcastingDecision2014465 MusiquePlusandMusiMaxChangeineffectivecontrol
andlicenceamendments,BroadcastingDecisionCRTC
2014465,11September2014
BroadcastingOrder201160 Exemptionorderforsmallvideoondemandundertakings,
BroadcastingOrderCRTC201160,31January2011
BroadcastingPublicNotice199089 NativeBroadcastingPolicy,BroadcastingPublicNotice
CRTC199089,20September1990
BroadcastingPublicNotice1999117 EthnicBroadcastingPolicy,BroadcastingPublicNotice
CRTC1999117,16July1999
BroadcastingPublicNotice2006143 Exemptionorderrespectingcertainnetworkoperations,
BroadcastingPublicNoticeCRTC
2006143,10November2006
TelecomRegulatoryPolicy2013271 TheWirelessCode,TelecomRegulatoryPolicyCRTC2013
271,3June2013
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Appendix6CMR2016
A.6 ListofCanadiancompaniesreferencedinthe
reportandtheirfullnames
AccessCommunications AccessCommunicationsCooperativeLimited
Astral AstralMediaInc.
BCE BellCanadaEnterprises
BellAliant BellAliantRegionalCommunications,LimitedPartnership
BellMobility BellMobilityInc.
Bragg BraggCommunicationsIncorporated
CBC CanadianBroadcastingCorporation
Cogeco CogecoDataServicesInc.,CogecoCableCanadaLP,CogecoCableQubec
GeneralPartnership,CogecoCableCanadaGeneralPartnership
Corus CorusEntertainmentInc.
Distributel DistributelCommunicationsLimited
EastLink EastLinkInc.
Lansdowne LansdowneRuralTelephoneCo.Ltd
MTSAllstream MTSAllstreamInc.
Northwestel NorthwestelInc.
Qubecor QubecorMediaInc.
Primus PrimusTelecommunicationsCanadaInc.
Remstar RemstarBroadcastingInc.(V)
Rogers RogersMediaInc.,BroadcastingLimited,RogersCommunications
Partnership
SaskTel SaskatchewanTelecommunications
Shaw ShawCommunicationsInc.
Sogetel Sogetelinc
SRC SocitRadioCanada
TELUS TELUSCommunicationsCompany,TELUSServicesInc.
Tlbec Tlbec,LimitedPartnership
TlQubec SocitdetldiffusionduQubec
Videotron VideotronLtd.,VideotronG.P.
WIND WINDMobileCorp.
Xplornet XplornetBroadbandInc.,XplornetCommunicationsInc.
Yak YAKCommunications(Canada)Corp.
351
Appendix6CMR2016
352
Appendix7CMR2016
A.7 Telecommunicationsmarketsectordescription
A) Wirelinevoice
Wirelinevoicerelatedtelecommunicationsservicescanbedividedintotwobroadmarketsegments:(i)local
andaccessservices,and(ii)longdistanceservices.
i. Localandaccessservices
Thelocalandaccesssegmentiscomposedofwirelineservicesrelatingtoaccessandconnectivitytothe
publicswitchedtelephonenetwork(PSTN),andincludesservicesusedbybothretailandwholesale
customers.
Localwirelinetelephoneserviceenablescustomerstoplaceunlimitedcallswithinadefinedlocalcallingarea
forabasicmonthlyfee.Thisserviceiseitheraccessdependentoraccessindependent.Accessdependent
serviceincludesmanagedwirelineaccessfromthetelecommunicationsserviceprovidertothecustomer,a
connectiontothePSTN,andatelephonenumber.Accessindependentservicedoesnotincludethemanaged
wirelineaccesscomponent.CustomersofaccessindependentservicemustsubscribetobroadbandInternet
service,whichservesastheaccesscomponent.
Localwirelinetelephoneserviceincludesautomatedcallanswering,businessCentrex,andIntegrated
ServicesDigitalNetwork(ISDN)services,aswellasotherancillaryservicessuchasinsidewiring,installation
andrepair,teleconferencing,andmiscellaneouslocalservices.
Localandaccessservicesinclude(a)localservicesprovidedtootherprovidersoftelecommunications
servicesonawholesalebasis,and(b)accessservicesforinterconnectionbetweencarriersandotherservice
providers,includingswitchingandaggregation.
ii. Longdistanceservices
Retaillongdistanceservicesencompasswirelinevoicetraffictolocationsoutsidethelocalcallingarea.These
servicesaresoldinavarietyofways,suchasthroughastandardperminutecharge,amonthlysubscription
plan,callingcards,orinabundlewithotherservices.
Wholesalelongdistanceservicesareprovided(a)underconnectionarrangementsbetweenafacilitiesbased
telecommunicationsserviceproviderandalongdistanceserviceprovidertotransitlongdistanceminutes,or
(b)onawholesale,bulk,longdistanceminutebasisbyfacilitiesbasedtelecommunicationsserviceproviders
toresellersoflongdistanceservices.
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Appendix7CMR2016
B) Internet
Internetrelatedtelecommunicationsservicescanbedividedintotwobroadmarketsegments:(i)Internet
accessandtransport,and(ii)InternetapplicationsandotherInternetrelatedservices.
i. Internetaccessandtransport
InternetaccessserviceinvolvestheprovisionofanInternetProtocolconnectiontoanenduser,which
enablestheendusertoexchangeapplicationtrafficwithInternethostsandotherendusers.Internetaccess
serviceconsistsofthefollowingthreemajorcomponents:
a) dataconnectionbetweenamodemattheenduserslocation(suchasaresidentialdwelling)andthe
Internetserviceprovider(ISP);
b) ISPfacilities,whichinclude
routers,toswitchtrafficbetweenISPendusersandtheInternetatlarge;
servers,toprovideinhouseISPservices,suchasemail;and
networkmanagementelements;and
c) aconnectionfromtheISPtotheInternet.
Internetaccessservicesareavailableatavarietyofspeeds.Lowspeed,ornarrowband,accessservices
operateatspeedsofupto64kilobitspersecondandaretypicallyprovidedusingdialupaccesslines.High
speedaccessservices,includingwideband[upto1.5megabitspersecond(Mbps)]andbroadband(faster
than1.5Mbps),generallyoperateusingdigitalsubscriberline(DSL)technologies,coaxialcables,terrestrial
wirelesstechnologies,satellites,orfibreopticcables.
InternettransportserviceisatypeofInternetconnectivityservicetypicallysoldtoISPsandsomelarger
businesscustomers.InternettransportcapacityisprovidedoverInternetbackbonefacilitiesthatcarry
aggregatedtrafficacrossdomesticandinternationallinksbetweenInternettrafficswitchesorrouters.
InternettransportserviceprovidespartialcontroloverthemovementofcustomersInternettraffic.Insome
cases,peeringarrangementsbetweenInternetbackboneserviceproviderssubstitutefortheoutright
purchaseofInternettransportbyoneISPfromanother.
ii. InternetapplicationsandotherInternetrelatedservices
AgrowingnumberofInternetapplicationservices,includingemailandWebhosting,piggybackonInternet
connectivityservices.InternetapplicationservicesaretypicallybundledtogetherwithInternetaccess
services.However,telecommunicationsserviceprovidersalsoparticipateinemergingstandalonebusiness
Internetapplicationservicemarkets,whichincludeservicessuchaspremiumWebhostingservices,Internet
datacentreandoffsitedatastorageservices,andsecurityandfirewallservices.
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Appendix7CMR2016
C) Dataandprivateline
Dataservicesincludemanagedlocalareanetwork(LAN)andwideareanetwork(WAN)servicesfordata,
video,andvoicenetworkswithinametropolitanareaoronanationalorinternationalscale.Dataservices
includelegacyprotocolssuchasX.25(packetswitchedWANcommunication),AsynchronousTransferMode
(ATM),andframerelay;newerprotocolssuchasEthernetandInternetProtocolVirtualPrivateNetwork(IP
VPN);andtheprovisioningandmanagementofnetworksandrelatedequipment.
Privatelineservicesprovidethecapabilitytolinktwoormorelocationsoverdedicatedfacilitiesforthe
purposeoftransportingdata,video,orvoicetraffic.Theseservicesincludehighcapacitydigitaltransmission
services(atspeedsranginguptogigabitspeedsoverfibre),aswellasvoicegradeandotheranalogue
services.Transmissionfacilitiesforprivatelineservicesincludecopperwire,fibreopticcable,andsatellite
facilities.
D) Wireless
Wirelessservicesarecomposedoftelecommunicationsservicesprovidedviamobilewirelessaccessfacilities.
Theseservicesincludemobiletelephony,mobiledata(suchastextandmultimediamessaging),roaming,
wirelessInternetaccess,andpagingservices.Dataandprivatelineservicesbysatelliteareincludedinthe
Dataandprivatelinesectionofthisreport,whilemobiletelephoneservicesareincludedintheWireless
sectionofthisreport.
Inadditiontoenablingvoicecommunicationsoverwirelessnetworks,newwirelesstechnologiesareenabling
userstosendtextmessagesandmultimediamessages,includingphotos,graphics,videos,andaudioclips,
fromonedevicetoanotherandfromonecarriertoanother.Datausageisexpectedtocontinuetogrowas
existingandnewcarriersforgenetworkagreementsandexpandandupgradetheirnetworks,andasterminal
equipmentmakersintroducenewdevices.
355
Appendix7CMR2016
356
Appendix8CMR2016
A.8 ClassificationofCanadianTSPs
Forthepurposesofmonitoringandreportingonthestateofcompetitioninthetelecommunicationsmarket
sectors,providersoftelecommunicationsservicesoperatinginCanadaareclassifiedintotwobroad
categories:incumbentprovidersandalternativeproviders.Thecategoryintowhichagivenproviderfallsmay
changefromoneyeartothenextasaresultofmergersoracquisitionsintheindustry.Forexample,ifa
provideracquiresorestablishesacompanythatprovidesmobile(wireless)service,thewirelesscompany
takesthesameclassificationastheparentprovider.Companiesprovidingtelecommunicationsservicesare
classifiedaccordingtothestructuresetoutbelow.
1. Incumbentprovidersarethecompaniesthatprovidedlocaltelecommunicationsservicesona
monopolybasispriortotheintroductionofcompetition.Forthepurposesofthisreport,these
companiesoperationsoutsidetheirtraditionaloperatingterritoriesareincludedinthealternative
providerscategory.Incumbentprovidersaresubdividedintolargeandsmallproviders.
a) Largeincumbentprovidersserverelativelylargegeographicalareas,usuallyincludingbothruraland
urbanpopulations,andprovidewirelinevoice,Internet,dataandprivateline,wireless,andother
services.ThelargeincumbentprovidersareBellAliant;BellCanada;MTSAllstream;Northwestel,
SaskTel;Tlbec,andTELUS.
b) Smallincumbentprovidersserverelativelysmallgeographicalareas(mostlymunicipalareas
generallylocatedinlessdenselypopulatedregions)inOntario,Quebec,and,inoneinstance,British
Columbia.Duetothelimitedsizeoftheirservingareas,thesecompaniesdonottypicallyprovide
facilitiesbasedlongdistanceservices.However,theyprovidearangeofwirelinevoice,Internet,
dataandprivateline,andwirelessservices.ExamplesofsmallincumbentprovidersareLansdowne
inOntarioandSogetelinQuebec.
2. Alternativeprovidersareeither:i)providersoftelecommunicationsservicesthatarenotincumbent
providersasdescribedin1)above;orii)incumbentprovidersconductingoutofterritoryoperations,
suchasBellCanadaconductingoperationsinAlbertaandBritishColumbiaorMTSAllstream,
conductingoperationsacrossCanada.Alternativeprovidersaresubdividedintofacilitiesbasedand
nonfacilitiesbasedproviders.
a) Facilitiesbasedalternativeprovidersownandoperatetelecommunicationsnetworks.Thisgroupis
furthersubdividedintofacilitiesbasedincumbentproviders(outofterritory)andfacilitiesbased
nonincumbentproviders.
Facilitiesbasednonincumbentprovidersarefurthersubdividedintocablebasedcarriers,utilitytelcos,and
othercarriers.
Cablebasedcarriersaretheformercablemonopoliesthatalsoprovidetelecommunicationsservices
(e.g.wirelinevoice,Internet,dataandprivateline,andwirelessservices).Theseprovidersinclude
suchcompaniesasBragg,Cogeco,Rogers,Shaw,andVideotron.
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Appendix8CMR2016
Utilitytelcosareprovidersoftelecommunicationsserviceswhosemarketentry,orwhosecorporate
groupsmarketentry,intotelecommunicationsserviceswasprecededbyagroupmember
companysoperationsintheelectricity,gas,orotherutilitybusiness.
Othercarriersownphysicaltransmissionfacilities(e.g.intercity,intracity,orlocaltransmission
facilities).TheseserviceprovidersincludesuchcompaniesasXplornet.
b) Nonfacilitiesbasedalternativeprovidersdonotownoroperateatelecommunicationsnetwork.
Thesecompaniesarereferredtoasresellers,sincetheygenerallyacquiretelecommunications
servicesfromotherprovidersandeitherresellthoseservicesorcreatetheirownnetworkfrom
whichtoprovideservicestotheircustomers.Examplesofnonfacilitiesbasedalternativeproviders
areDistributel,Primus,Yak,andindependentInternetserviceproviders.
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Appendix9CMR2016
A.9 Ruralcommunitiesincludedinserviceprice
assessment
Accordingtothe2011Census,approximately19%ofCanadianslivedinruralcommunities.Toassessthe
priceofcommunicationsservicesforthissegmentofthepopulation,54ruralcommunitieswereselected.
Thesecommunitiesrepresented3%ofCanadianslivinginruralcommunitiesandwereselectedbasedonthe
followingcriteria:
Thecommunitywasnotpartofoneofthecensusmetropolitanareasofthe24urban
centreslistedinTableA.4.2below;
Thecommunityhadapopulationdensityoffewerthan400peoplepersquare
kilometre,oritspopulationcentreshadfewerthan1,000peoplepercentre;
Thenumberofcommunitiesselectedineachprovince/territoryreflectedthat
provincesorterritorysproportionofthetotalpopulationofCanada;and
Thecommunitieswerenotgeographicallyclustered.
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Appendix9CMR2016
TableA.9.1Listofruralcommunities
360
Appendix9CMR2016
TableA.9.2Listofurbancentres
MajorcentreboundariesaredefinedusingStatisticsCanadascensusmetropolitanareaandcensus
agglomerationdefinitions.
361
Appendix10CMR2016
A.10 Aboutbroadbandmeasurement
i Methodology
Tocollectdataforthisreport,theCRTCusedatestenvironmentthataimstoreplicatehowatypical
consumerwouldutilizeonlinestreamingandrealtimecommunicationsservices.Theserviceswereaccessed
byatypicalwirelineresidentialbroadbandservice,andanationalLTEcellulardatanetwork,using
mainstreamofftheshelfconsumerelectronics:AndroidandiOSbasedtabletsandphones,smartTVs,
WindowsandLinuxbasedlaptopanddesktopcomputers,andvarioussettopstreamingdevices.Aweb
browserwasusedtoaccessthestreamingservicesonthePCs,andofficialapplications(apps)wereusedon
theotherdevices.
Tomeasurethedataconsumedbytheseservicesonthewirelineconnection,aspeciallyconfiguredLinux
basedcomputerwasinsertedbetweentheupstreamInternetconnectionandthelocalnetwork.Using
industrystandarddatacollectiontools,alldataflowingbetweenthetestdeviceandtheInternetwas
capturedforanalysis.FortheLTEconnection,trafficwasrecordedusingthesametools,butfromavirtual
interfaceonacomputerthatmirrorstheLTEinterfaceonthetestdevice.Thisprocessiscompletely
transparenttothestreamingservicesandtestdevices.
ThemaximumspeedsofthewirelineandLTEInternetconnectionsweretested,andfoundtobesignificantly
higherthanthemaximumobservedspeedsofthestreamingservicestested;inotherwords,theInternet
connectionsdidnotlimitthespeedofthestreamsinanyway.Toensureaccuracy,multiplemeasurements
weretakenforeachserviceandqualitylevel(wherethissettingwasavailable),andbackgrounddatausage
(i.e.theusageofbackgroundappsandservices,otherthantheonebeingtested)wasminimized.
ii Automaticbitrates
Onaconsumersnetwork,multipleapplicationsanddevicescontendforaccesstoalimitedamountof
bandwidth.AssumingthatthebandwidthoftheconsumersInternetpackageishighenough,multiple
applicationscanshareaconnectionwithoutanynoticeabledropinquality.However,onconnectionsthatare
constrainedbylowbandwidthorthosethathavetoomanyapplicationsrunningsimultaneously,thequality
oftheconsumersexperiencewillbeimpacted.
Toavoidinterruptions,andtoprovidethebestuserexperiencegiventheaforementionedconstraints,many
applicationswilldynamicallyadjustthequalityoftheirstream.Adecreaseinthequalityofthestreammeans
lowerdemandforinstantaneousbandwidth,andlessdatausageoverall.Conversely,higherstreamqualities
requiremoreinstantaneousbandwidthandwillusemoredata.FigureA.10.1showstherangeofbitratesfor
somecommonvideostreamingservices.
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Appendix10CMR2016
FigureA.10.1Rangesofbitratesforsomevideostreamingservices
Rangesofbitrates
0 1 2 3 4 5 6 7 8 9 10 11 12 13
Gigabytesperhour(GB/h)
Combineddownloadandupload
Source:CRTCTechnologyResourceCentre
Additionally,streamingserviceshavedifferentpatternsofdatadelivery;somedeliverfixedsizeblocksof
datahoweverquicklytheInternetconnectioncanacceptthem(mostvideostreamingservices),whileothers
sendaconstantstreamofdataatafixedrate(predominantlyaudiostreamingandrealtimecommunications
services).ThedifferenceinbandwidthusageisdetailedinFiguresA.10.2andA.10.3.
FigureA.10.2Exampledatarategraphofafixedsizechunkstreamingservice
Source:CRTCTechnologyResourceCentre
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Appendix10CMR2016
FigureA.10.3Exampledatarategraphofafixedratestreamingservice
Whilethebandwidthusagecharacteristicsofastreamingservicedoesntaffectitsoveralldatausage,itmay
impactotheractivitiesforsubscriberswhoshareanInternetconnection,orwhohavemultipledevices.As
thenumberofsimultaneousstreamsincreases,thelikelihoodofsaturatingahouseholdsInternet
connectionincreases;saturatingtheconnectionresultsindroppedpacketsandmayinterruptstreamsto
bufferdata.
iii EffectofCompressiononDataUsage
WhenaudioandvideoarestreamedovertheInternet,theyaresentinacompressedformat.Thecodec
determinestheformatofthemedia,anddirectlyaffectsthedatausageofitsstream.Althoughaudio
compressionhasnotchangedmuchinrecentyears,theproliferationofUHDvideohasspurredthe
developmentofmoreefficientvideocompressionstandards.18Newercodecsallowthesamevideotobe
moreefficientlycompressed,resultinginalowerstreamingbitrateforvideoofthesamequality.Thismeans
consumerswillbeabletoviewhigherqualityvideowithoutneedingtoincreasethespeedoftheirInternet
connectionortheirdatausage.
18H.264/MPEG4AdvancedVideoCoding(AVC)isavideocodecstandarddefinedbytheMovingPictureExpertsGroup(MPEG)
thathasbecomethedefactocompressionmethodformanystreamingvideoservices.However,whenH.264isusedwithhigh
resolutionUHDvideo,thestreamsbitrateoftenexceedsthespeedoftypicalresidentialInternetconnections.Forthisreason,
somestreamingserviceshavestartedusingnewer,moreefficientcodecstostreamtheirdata,likeH.264ssuccessorH.265
HighEfficiencyVideoCoding(HEVC).
365