PRESS RELEASE
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November 2006: Press Release |
Maravedis Predicts Internet Penetration in Canada to Exceed
70% by 2017
Featuring an Exclusive Canadian Internet Database
by Postal Code, Region and Technology
MONTREAL, Canada, November 7, 2006 –The leading telecom market research and analyst firm Maravedis introduces its new Canadian
Internet Database, called CID. In addition to providing information on Canadian Internet
penetration rates by year, region and technology, CID offers the unique capability to access
precise information classified by Postal Code, a first in the industry.
“We understand the investment implications of offering Internet access, and we believe this
substantial database is essential to Internet Service Providers (ISP) looking to enhance revenues,
improve customer loyalty, identify new prospective clients, create new customized service
offerings and increase addressable market,” explained Julien Regoli and Adlane Fellah, the
architects and originators of CID.
The analysis demonstrates an intrinsic correlation between Internet usage and specific
demographic factors. Age, income, education and location are the most influential factors. “We
have created an equation to represent this correlation and used it to estimate the level of
household penetration in each of Canada’s Forward Sortation Areas1 (FSA), which provides
users with higher quality projections taking into account the detailed socio-economic
characteristics of this market,” continued Fellah.
Over 95% of Internet users on broadband access by 2017
According to Maravedis, Internet penetration per household in Canada will exceed 70% by 2017,and it is anticipated that 95% of Internet users will have subscribed to a high-speed (broadband)connection.
“The average monthly bandwidth usage per residential subscriber has increased from 50 Mbps in
2003 to 300 Mbps in 2005, which definitely makes dial-up service an increasingly frustrating
experience,” says Adlane Fellah. Dial-up Internet subscribers are typically new or occasional
users. And, as they increase their use, subscribers are likely to upgrade to a high-speed
connection at some point.
Canada is a leading country when it comes to Internet penetration as well as broadband
deployment, and they continue to intensify although at a slower pace than in the past few years.
CID clearly projects a growing gap in penetration rate between the Atlantic and the Western
Provinces. By 2017, British Columbia is expected to possess the highest Internet penetration rate
1 “FSA” refers to the first three characters in the postal code associated with a postal facility from which mail delivery
originates.
at close to 80%, followed by Ontario and Alberta in the high 70s%. In contrast, Quebec, New
Brunswick and Newfoundland are expected to reach around 55% penetration.
Although growth has decelerated, the Canadian Internet market will be interesting to watch in the
coming years. Between changes in regulation and the introduction of new technologies such as
Broadband Wireless Internet through WiFi and WiMAX, we expect an exciting future ahead as
Wireless technologies are deployed, providing subscribers with portability and mobility features.
As a result, Maravedis foresees there will be several subscriptions per household – phenomenon
Canadian households are experiencing today with cell phones.
Maravedis’ CID also includes a WiMAX supplement with all the vital information on current
license holders in the 2.5 GHz band in Canada.
ABOUT MARAVEDIS
Maravedis is a leading research and analysis firm focusing on Broadband Wireless technologies
including WiMAX, 802.20, TD-CDMA and Wireless Local Loop Systems. Maravedis has
established itself over the years as the most credible and reliable resource for market intelligence
in the broadband wireless industry. Maravedis works with equipment vendors, service providers,
regulators and the investment community to produce a sound market analysis based on hard primary data and on in-depth understanding of technology, market and regulation trends.
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