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The North America Telecommunications Sectors : A Company and Industry Analysis (November 2006)
Mergent, Nov 2006, Pages: 32
This report updates the previous North American telecommunications report, focusing on the markets in Canada and the United States
Current Environment - Key Points
- Fixed-line services revenues in the US remained on an overall negative trend in the first six months of this year
- Data services revenue in the US increased by 70% for the first half of this year compared to the first half of last year
- In May this year, nearly three quarters of active internet users in the US were connected at home via broadband
- Canadian traditional wire-line telephone services suffered its biggest decline on record early this year
- Canada ranked eighth in the world in terms of broadband penetration in April
Industry Profile - Key Points
- Fiber optics deployments are growing rapidly in the US and in October it was in more than six million homes
- A market overview by the Telecommunications Industry Association (TIA) found that total spending in the US telecoms industry rose by 8.9% last year to estimated US$856.9 billion at the end of 2005
- The US telecoms sector has expanded greatly over the past few decades, from largely landline telephone services to fiber optic and wireless connections offering a wide range of voice, image, video, and data services
- In Canada, total telecoms industry revenue increased by 3.5% in 2005, primarily due to the increasing adoption of broadband internet and wireless services
- The Canadian information and communications technology (ICT) sector invests heavily in R&D, spending an estimated C$5.2 billion (US$4.6 billion) in 2005
Market Trends and Outlook - Key Points
- Due to its popularity, major US wireless carriers and digital music services are increasingly making audio and video content available to mobile customers
- The growing list of fiber optic connected homes indicates greater demand for unlimited bandwidth in the US
- The uptake of 3G technology in the US by mobile phone users, while steady, has been slower than in other countries
- Canadians are switching to wireless or cable telephone services in rapidly increasing numbers
- Today, high-speed wireless broadband WiMax (worldwide interoperability for microwave access) is driving innovation in the Canadian telecoms sector with the introduction of wireless video conferencing, internet protocol television (IPTV), wireless voice over internet protocol (VoIP) and instant messaging (IM)
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