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Seminar - An Overview of Communications Technologies


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Module 1 - An Overview of the Communications Industry                                                                Slide 4 of 26   _________________                                                                                  __________

                                         Industry Landscape

                                        Major Carriers Expanding

                                        Too Many Telecom Players 

                                        No Rate Hikes From CRTC

                                        Wireless - Next Hype

_________________                                                                                  __________

After the demise of Stentor, a partnership of Canadian telephone companies to develop and market telecommunications services, telephone companies became eager to move into each other's markets. Cable and wireless moved into telco markets. The rate hike cap by CRTC did not help telco revenues. The communications industry is looking to Wireless for new revenues.

Bell Canada and Telus decided to move into each other's markets. Both companies have to acquire or spend capital to set up network and operating infrastructures.

The total Canadian communications and entertainment market is no more than 10 billion dollars. The relaxed regulations allow telecom players to get into entertainment markets and vice versa. There are not enough revenues for 5 or 6 players.

CRTC has frozen local and long distance rate hikes until 2005. This is hurting major plant owners like Bell Canada and Telus hence a reduction in the capital investment. It does give some relief to network connectors like AT&T Canada and Metronet.

All players (Bell Canada, Telus, Rogers) see Wi-Fi (Wireless Fidelity; also called Wireless LAN or 802.11 (a, b and g) will have to generate new revenues. The envisioned applications for this technology are Internet and home computer networking.

                                                       
                                          Limited Communications Services Market