Cable / Telecom News

CRTC CMR: All about the data; broadband spend now outstrips TV subscriptions

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GATINEAU – Day two of the CRTC’s 2016 Communications Monitoring Report release shows that in 2015, Canadians data usage on various devices skyrocketed – and that those under the age of 30 are dramatically outspending their older counterparts on mobile.

(As shown by yesterday’s report, the older folks are still spending on regular TV.)

Canadians’ appetite for mobile applications, multimedia services, social networks, and other data-intensive activities like music, video and TV streaming to personal electronic devices increased rapidly in 2015, according to the report.

Last year, more than two-thirds of all wireless subscribers had a data plan, the majority of those featured at least 1 gigabit of data usage per month. Data usage increased by 44% for wireless and approximately 40% for residential Internet services from 2014 to 2015, reads the report. Voice has fallen down the list of apps for which consumers use their smartphones.

Younger Canadians (30 and younger) spend more than three times the amount of money on mobile wireless services than other Canadians do. Those aged 65 years and older spend the least amount of money per month on mobile services, says the report. Not coincidentally, yesterday’s release noted that those in the older brackets watched the most traditional TV…

Subscribing to landline telephone services continue to decrease. Mobile is in more Canadian households compared to landline services. Also, the gap separating mobile wireless only households compared to landline only households continues to increase. This is or should be of great importance to first responders and our country’s dated 9-1-1 systems, which still largely depend on finding emergencies based on the locations of land lines.

Broadband networks are now reaching almost the entire population of Canada. The rise in Internet service availability is also reflected in the Internet subscription rates which have been increasing steadily since inception. More specifically, they have increased 3.3% from 2014. Subscriptions to plans 50 Mbps and higher have doubled their take-up rate in the last year, says the report.

Also, for the first time ever, in 2015 Internet access revenues surpassed broadcasting distribution revenues and has emerged as the second largest sector after wireless. The Internet and wireless sectors continue to be the drivers of growth in the telecommunications sector as well as for household expenses.

More facts direct from the report:

  • Telecommunications service revenues reached $47.8 billion and represented 73% of overall communications service revenues in 2015.
  • Communications industry revenues reached $65.7 billion in 2015, up from $64.1 billion in 2014. This growth is equivalent to 2.5% between 2014 and 2015.
  • Most of Canadians’ spending on communications services went to mobile wireless services (38%), followed by home television services (26%), Internet services (20%), and home telephone services (16%).
  • In 2014, the average Canadian household spent $214.75 per month on communications services, an increase of $3.00 (or 1.4%) over 2013.  

Internet

  • 98% of Canadian households can access a download speed of at least 5 megabits per seconds (Mbps). This figure increases to 99.5% when including mobile technologies.
  • Residential Internet data downloads increased approximately 40% from 2014, and over 50%, on average, from 2010 to 2015. 
  • In 2015, Canadians downloaded an average of 93 GB of data monthly.
  • More than two-thirds of all residential high-speed Internet subscribers have plans greater than 100 GB per month.
  • Subscriptions to plans 50 Mbps and higher have doubled in the last year, going from 8% in 2014 to 16% in 2015.

Wireless

  • Wireless data usage increased 44% from 2014 to 2015.
  • Subscriptions for wireless services was close to 30 million in 2015, corresponding to a 3.4% increase from 2014.
  • 195 billion text messages were sent and received in 2015 in Canada.
  • 74% of mobile subscribers have a data plan in 2015, compared to 67% in 2014.
  • Canadians under 30 years of age spend the most on monthly mobile wireless services ($114.42), while Canadians aged 65 years and older spend the least ($33.50).

Landline vs wireless

  • Providers of landline telephone services have reported nearly 800,000 in line reductions in 2015, while wireless services gained approximately 1 million new subscribers in the same year.
  • Mobile phones are now in 86% of Canadian households compared to 76% for landline telephones.
  • The percentage of mobile wireless only households (24%) exceeds the percentage of wireline only households (14%).
  • Mobile wireless service revenues increased to $22.5 billion or 51% of total retail revenues. For the first time ever, more than 50% of all retail revenues in 2015 were from wireless services.

www.crtc.gc.ca