Telecommunications sector sees strong revenue growth in 2022: CRTC report

Revenues were robust in the telecommunications sector, a new CRTC study has found. Tuesday the commission released its annual report on the telecom market for 2022. Total revenues grew by 3.5 per cent, mirroring the 3.4 per cent growth registered in 2021. The CRTC credited mobile services for driving the increase. Revenues from wireless services went from $29.2 billion in 2021 to $30.9 billion in 2022, a hike of 5.7 per cent. Retail data revenue hit $14.2 billion, a 6.6 per cent jump, with retail roaming rates increasing by 88 per cent to $1.6 billion. Data usage grew by 21.3 per cent from 2021 to 2022. Fixed internet services grew by 4.9 per cent. Revenues went from $14.5 billion in 2021 to $15.2 billion a year later. The regulator attributes the growth to residential customers adopting higher speeds and increased usage by businesses following the pandemic slowdown. Incumbent telecom service providers (TSPs) accounted for the bulk of the market. Large TSPs held 56.5 per cent of the revenue share in 2022, a 4.3 per cent increase from the previous year. Small incumbents represented one per cent of the market, a decline of 4.5 per cent. Cable carriers now make up 35.8 per cent of the sector, a jump of 3.8 per cent. Other facilities-based carriers account for 3.6 per cent of the market, a decline of 0.6 per cent while wholesale TSPs held 3.1 per cent market share, a fall of six per cent. The total telecom market hit $57.2 billion in 2022. That consisted of $30.9 billion in mobile (an increase of 2.2 per cent); $16 billion in fixed internet (+4.7 per cent); $5.3 billion in local and access (a decline of 4.9 per cent); $2.9 billion in data (-1.8 per cent); $1.1 billion in long distance (-7.1 per cent); and 0.9 billion in private lines (-4.6 per cent). Only 10 companies provided service in all six telecom sectors. They accounted for 86 per cent of the market’s revenues in 2022. Firms offering one to three services generally provided internet, local and/or long distance. While they represent 73.6 per cent of the TSP total, they made only 5.5 per cent of the revenues. The number of wholesale internet lines fell 10 per cent to 1.1 million across Canada. Central Canada accounted for most of the fall, with Ontario registering a 12.5 per cent decline and Quebec’s numbers falling by 12.8 per cent. There was a 12 per cent jump in internet lines in Atlantic Canada, mostly attributed to a hike in Nova Scotia. –Reporting by Paul Park at ppark@thewirereport.ca.

Telecommunications sector sees strong revenue growth in 2022: CRTC report

News | February 27, 2024

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Telecommunications sector sees strong revenue growth in 2022: CRTC report

News | February 27, 2024

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