The Information Technology Landscape in Canada

 

About Canada

Telecommunication
Infrastructure

Privatization and Deregulation

Internet Activity

e-Commerce

Hardware Manufacturing
Software Development

IT Usage

IT Labor Market
IT Geographics
IT Financing
Government Policies
Legal Environment
Analysis : IT Strengths/ and Weaknesses
Analysis :Impacts on the Business
Sources and Links
About the authors

Telecommunication Infrastructure in Canada

Telecommunications Industry

Canada’s government is helping the Telecommunications Industry reach national and international recognition by laying groundwork to help the nation’s communication equipment suppliers. By giving tax credits to the private sector to stimulate research and development, Canadian telecom equipment, computers, peripherals, and software companies have promising futures. Canada was the first for the deployment of many telecommunication advancements such as the first public packet switching network, a pioneer of fiber-optic use and of intercontinental ATM transmission. In 1995, Canada’s communications sector made a profit of almost $23 billion of which over $20 billion was revenue from the telephone industry. The Canadian Telecommunications Industry supported about 150 companies, most of whom were re-sellers, that captured about 10% of the estimated $6 billion long-distance market from incumbent operators.  Canada's city nodes are Vancouver, Ottawa, Montreal, and Toronto.

Canadian Technology innovators

  • Nortel – www.nortel.com Northern Telecom which is the best known of Canada’s telecom companies and the world sixth largest equipment supplier and developer of communications products, systems, and networks.
  • MPR Teltech – Located in British Columbia. MPR Teltech is an innovator of communications and business systems concentrating in ATM, multimedia applications, and wireless communications, including digital and cellular digital packet data and wireless local loop communications.
  • Newbridge Networks – www.newbridge.com Based in Ontario, Newbridge Networks is a leader in the global telecommunication industry, most specifically, ATM wide-area network with almost one-half the market share, and T1/E1 multiplexing markets with nearly one-third of the market share.
  • West End Networks – Located in Ontario and a member of the Newbridge Networks Group, West End Networks provides access over hybrid fiber/coax (HFC), frame relay, X.25, and ISDN network media and is expanding into VSDL and ATM.
  • TimeStep – Located in Ontario and also an affiliate of the Newbridge Networks Group, TimeStep is experienced in security and cryptology over TCP/IP networks for LANs, Internet communications, and branch/remote offices.
  • Other Canadian Telecommunication leaders include Cross Keys, Consultronics, Mitel, VIVE Synergies, Hewlett-Packard Canada, The Canadian Networks Operation, and GN Nettest.

Canadian Technology innovators reaching internationally include:

  • Argus Technologies – Based in British Columbia, Argus is an established leader of telecommunications dc power in North America and is expanding into developing countries in Asia and Eastern Europe.
  • TSB International

Canadian Technology innovators reaching rural communities include:

  • SR Telcom – Located in Quebec, SR Telecom is the leader in TDMA point-to-multipoint microwave radio-based wireless local loops.
  • SatCorp Communications

These companies offer excellent service provided by modern technology. Domestically, Canada has a strong domestic satellite system with about 300 earth stations. Internationally, Canada has 5 coaxial submarine cables; satellite earth stations—5 Intelsat (4 Atlantic Ocean and 1 Pacific Ocean) and 2 Intersputnik (Atlantic Ocean region).

Source: Telecom Magazine , CIA-World Fact Book 1999

Future of Telecommunications in Canada and Beyond

Canada and its government support a powerful telecommunication presence in the world. With the support of their government, Canada has funded growth into the most leading edge innovations in the telecommunication market in areas such as switching systems, fiber optic cabling and satellite networking, wireless, voice recognition and video over telephony, electronic commerce and encryption, and in broadband and new media products and services. Canada is a world leader in this industry with the invention, connectivity, and resourcefulness of a powerhouse. They rank high in most telecommunication segments such as telecom spending, top telecom operators, fixed-line telecom operators, and equipment vendors along side the United States and share cross country backbone with the United States. Canada stands strong in the telecommunication industry by providing fast, reasonably priced products to their Canadian consumers and Canadian businesses in order for them to be internationally competitive. The following data shows numbers that reinforce Canada’s goal – to be a world telecommunication leader. The numbers are compared against another world leader in Telecommunications – the United States.

Influential Statistics for the Telecommunications Industry in Canada

Telecom Spending in Canada vs. United States (# Ranking Worldwide)

(U.S.$M)

1992

1993

1994

1995

1996

1997

Canada (#10)

13,537

12,785

13,584

13,916

15,177

16,648

% of World

2.6%

2.4%

2.3%

2.1%

2.1%

2.1%

U.S. (#1)

170,398

181,331

195,166

205,577

209,587

220,067

% of World

33.2%

33.7%

33.6%

30.8%

28.8%

28.3%

Telephone Tariffs, 1994

 

Residential

Business

Local Call

Subscription as a 

% of GDP per Capital

 

(US$) Install

Monthly Subscription

(US$) Install

Monthly Subscription

   

Canada

24

8.1

72.2

29.4

 

0.5

U.S.

43.5

11.3

76.8

42.6

0.10

0.6

Source: Digital Planet – The Global Information Economy

Telecom Indicators for Canada vs. United States

     

GDP

Main Telephone Lines

 

Population

Total (Mil)

1998

Density (per Km)

1998

Total (Bil US$ 1997)

Per Capita (US$ 1997)

Total K (1998)

Per 100 Inhabitants (1998)

Canada

30.30

3

618.3

20,608

19,206

63.39

U.S.

270.37

29

8,083.4

30,173

178,800

66.13

Americas

799.90

20

10,730

13,658

258,345

32.33

Mobile Cellular, Subscribers per 100 people

 

Cellular Mobile Subscribers (K)

CAGR (%)

Per 100 People

As a % of total tele subscribers

% Digital

 

1997

1998

1997-98

1998

1998

1998

Canada

4,346.8

5,320

22.4

17.56

21.7

NA

U.S.

55,312.3

69,209.3

25.1

25.60

27.9

28.9

Americas

72,153.1

96,339.7

33.6

12.09

27.3

26.6

Top Canadian and US International Telecom Operators

Ranked by Total Outgoing & Incoming International Minutes, 1998

 

International Telecom Traffic, Minutes 1998

International Telecom Rev

 

Bothways

Outgoing

Incoming

     
 

Total (M)

Change 97-98

Total (M)

Change (97-98)

Total (M)

Change (97-98)

Total (US$ M)

Change

% of Total

Teleglobe (CA #19)

1,905

3.1%

1,145

3%

760

3.2%

631

-18.3%

18.6%

AT&T (US #1)

14,529

7.1%

10,331

8.2%

4,198

4.5%

9,555

-2.7%

18.6%

Fixed-Line Telecom Operators

Ranked by Number of 1998 Domestic Main Telephone Lines

 

Main Telephone Lines

Total Service Revenue

 

Total (000s)

Change 97-98

Total (US$M)

Change 97-98

As a % of Total Revenue

Bell Canada (CA#18)

10,950

3.2%

6,038

0.9%

85%

Bell Atlantic (US#4)

41,637

4.1%

23,467

3%

74%

Equipment Vendors

 

Telecom Equipment

Revenue (US$ Bil)

Change 97-98

As a % of Total Sales

Nortel (Canada)

17.3

11.7%

98%

Lucent (US)

26.8

16.5%

89%

Source: International Telecommunication Union

 

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Sarah Alijani sa0565a@american.edu  &  Richard Wright rightrf@aol.com ________________________________________________________________________________________
Last update: December 17, 1999