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Seminar - An Overview of Communications Technologies


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Module 1 - An Overview of the Communications Industry                                                              Slide 22 of 26  _________________                                                                                  __________

                                         Canadian Telecom Revenues

       ($ millions)         

     2001     2000     % Change
Long Distance     6,104.6     6,560.8       -7%
Local and Access   10,861.0   10,216.4      6.3%
Mobile and paging     6,755.7     5,816.0    16.2%
Internet     1,664.4     1,103.3    50.9%
Data, Private Line and other     5,729.0     5,121.8    11.9%
Total   31,114.7   28,818.3      8%

                                                                http://www.crtc.gc.ca              

_________________                                                                                  __________

Communications service and equipment providers are coming out of the slump. The communications companies have shed the baggage they accumulated in the late 90s at a very high price. The telephone, cable and wireless industry is showing moderate profits. For the first time in the last 2 years, Nortel has shown a profit in 1st Q of 2003. The new strategies are working.

Canadian and U.S. communications companies are showing a profit.

The long distance revenues for voice are going down.

The loss of Long Distance revenues is being replaced by the Internet, Wireless and other data services.

The carriers' capital spending has impacted the communications equipment manufacturers.  Companies like Nortel have shifted their focus to Enterprise network and wireless network products.