Canadian wireless revenue continues to grow

01 January 2010 |


Double-digit revenue growth in the Canadian wireless sector has translated into growth in capex spending for Canadian wireless providers, according to IDC Canada’s Canadian Wireless Forecast and Analysis 2007-2012.

Expansion of digital wireless coverage areas and launch of advanced wireless services continues to be the focus of capital spending by Canadian wireless providers. The introduction of new high-speed 3G services and SIP-based networks will result in new spending in the next three years, according to IDC Canada. As a group, Canada’s major wireless providers expect to spend almost $1.6 billion (C$2 billion) on their 2008 capex projects, a 9% increase from the nearly $1.5 billion (C$1.9 billion) spent in 2007.

Already the darling of the telecoms market, the wireless segment has surpassed the legacy wireline voice market in size and is expected to generate almost $12 billion (C$15 billion) or 39% of telecoms service revenue in 2008. IDC estimates that wireless will grow at a five-year CAGR of 9.4% which will generate $17.4 billion (C$21.4 billion) or more than 48% of telecoms spending by 2012.