Canadians are spending a larger percentage of their budgets on cellular phones and Internet access.
From 1997 to 2004, households increased their total expenditure on cellular and Internet services by 27.5%. Over the same period, expenditures on household operations also increased by 27.7%. However, when examining communications, Stats Canada noted that expenditures on traditional telephone service fell by 8.4% while expenditures on wireless increased by 253%, and Internet access by 600%s
In addition to this dramatic growth in expenditures on wireless and Internet access, the share of total expenditures has increased from 0.2% to 0.5% for wireless and from 0.1% to 0.3% for Internet access. The share of expenditures on wireline service fell from 1.5% in 1997 to 1.0% in 2004 (Table 2).
The increasing share of cellular and Internet expenditures, and declining share of wireline expenditures, suggests that Canadians are increasing the relative importance of mobile technologies and Internet access in their household budgets.
Since the launch of cellular services in the mid-1980s, mobile phones have largely been a complement to the traditional phone line – but that is beginning to change. Recent statistics show that more Canadians have chosen to make their cell phone their only means of communication. In 2009 it seems that everyone has a cell phone, from the teenager discussing after-school plans, to the businessperson checking into the office or with clients. In fact at the end of 2005 there were 16.6 million subscribers to mobile communications services. 
There is no doubt that mobile technology is here to stay, growing in popularity and is overtaking traditional wireline data and phone services. The trend has only strengthened to 2009 based on other independent reading.
Canadian consumers are spending a higher percentage of their total expenditure on wireless communications. This combined with the decreasing importance of spending on wireline technologies, suggests that Canadians are placing a higher priority on wireless access when compared to traditional wireline access.
In addition, the increase in wireless subscribers, population and households, along with the decrease in the number of wireline connections, supports the hypothesis that Mobile technologies are replacing home phones and wired Internet connections. (Cimeron McDonald, SIEID, Statistics Canada) .
The trends represent a change in lifestyle that has created a negative perception of wired services, similar to feeling chained to a desk. Canadians want the freedom, convenience, and flexibility of wireless services. This is a shift in lifestyle and the infiltration of the technology into the daily patterns of the lives of Canadians.
These findings are further strengthened in a 2008 Statistics Canada Report . Wireless access is about to overtake traditional wireline access. For the fifth consecutive year, traditional wireline access to the Public Switched Telephone Network (PSTN) declined. From a high of 20.8 million lines in 2001, it eroded to 18.8 million in 2006.
In 2006, wireless subscriptions increased by 14.0% to 19.1million subscribers, resulting in more than 58% of Canadians having a cell phone.
The following data is from the Statistics Canada Report “Literacy and Digital Technologies “ (December 2005) . This data tracks the penetration of various technologies in the homes of Canadians between 1997 and 2003. The trend have continues into the late 2000s with Internet penetration increasing and home phone landline declining. Some reports have found a growing length of time spent online that has eroded typical prime-time TV viewing habits. This trend will continue as Mobile technologies speed up and become cheaper. The trends strongly suggest that a natural migration from wireline High Speed Internet to Mobile Internet is taking place. Internet-based entertainment including Internet Video and Internet Radio are poised to replace traditional Television-based entertainment. Internet Broadcasting is growing in importance and popularity. For example, Sirius Satellite Radio and most TV channels offer a streamed video or audio version of their content. iTunes also now offers pay-per-view TV Shows and Movies. There is no question; Internet Broadcasting will continue to increase in market size.
Statistics Canada did a very important study of Broadband usage in Canada in 2003 . This report has been widely quoted, and shows that Canadians (who are highly urban in their geographic concentration) tend to rapidly adopt Internet broadband technologies. Canadians are willing to pay for broadband and actively use broadband technologies. This logically has extended into their use of high-speed wireless technologies.
The Internet in Canada is a mass medium that continues to grow steadily with over 23,000,000 monthly users and roughly 20,000,000 daily users, the vast majority of Canadians have come to rely on this medium for news, entertainment, research, commerce and communications.
Canadians are, by far, the world’s heaviest Internet users and among the world’s savviest. According to the comScore World Metrix report, Canadians spend an average of 45.5 hours per Internet user per month, nearly 20-hours per month more than the worldwide average of 26-hours per Internet user per month and more than 10-hours more per month than the second and third heaviest users, Israel and the United Kingdom.
Canadians have also led the world in consuming all types of content and media formats online, including online video. Of the five countries currently reported by comScore Video Metrix, online video had the highest reach in Canada, where over 19-million viewers viewed a video online in December 2007, representing 89% of the total online population age 15 and older.
Per capita, Canada’s online video audience also viewed more videos than any of the other reported countries, averaging 112 videos per viewer for the month of December 2007. Again, U.S. activity was much lower, averaging 77 videos per viewer over the same time period.
Credit for this exceptional amount of usage has been attributed to a high level of Internet connectivity, broadband access and a wealth of available content. To quote Karin Von Abrams, senior analyst at eMarketer and author of the “Canadian Online Advertising” report, “The country has one of the best broadband infrastructures in the world and higher household Internet penetration than the United States. The online population is engaged, tech-savvy and independent-minded.”
Canadian Internet usage data from Ipsos Reid 2007 Interactive Reid Report clearly emphasizes our leadership in Broadband and Internet usage globally:
Canadians Actively Consume Mobile Internet Digital Media
There are very positive statistics regarding Canadian Mobile Internet usage patterns that were included in the “Canadian Media Director's Council Media Digest 08/09”, Canadian Media Directors Council (CMDC), 2009 :
More people are using mobile devices for high-speed Internet access than are signing up for fixed-line subscriptions, according to UN data published on October 6th 2009. Mobile subscriptions are expected to reach 600 million, leapfrogging the estimated 500-million fixed-line subscriptions by 2010, the International Telecommunications Union said. (Toronto Star, B5, October 7, 2009).
Rogers Wireless, Bell Mobility and LOOK Communications have already launched mobile broadcasting services and provide customers with “real-time access to live television programming” including exclusive Blue Jays content, news, sports and entertainment on mobile devices.
Bell Canada (BCE Inc.) offers a competing service and Bell offers more than a dozen channels in similar entertainment categories as Rogers’ offering, including Fashion TV, FOX Sports, and TLC3.
There is great debate at the CRTC regarding the development of regulations for Mobile Internet Services, nevertheless, the services exist and are flourishing while the legislation is being developed.
Another strong indicator of the future of Mobile Internet Technology is to look at the capabilities of existing Mobile Devices as well as the Internet services Mobile Carriers are providing to their customers today.
Mobile Carriers have done their research in this highly competitive market. In this section we will survey the mobile devices and Internet Packages to extrapolate what the Mobile Carriers perceive the current market to be (see Appendix A for the raw data).
Devices capabilities in the Mobile Market are a delicate balance of price, performance, application availability, and speed. Mobile Carriers are fully aware of the price conscious nature of consumers and there is tremendous competition in the marketplace for devices.
SmartAirMedia conducted a Primary Research Survey of the latest devices offered by Rogers was conducted in the consumer, business, advanced business, and entry-level phone categories. Data was provided by surveying Rogers Mobile websites for mobile devices available, see Appendix A for full details. This represents the full range of device types offered by Rogers in October 2009.
All the mobile devices in the market survey supported video, audio, and advanced web browsing. Mobile Carriers are now only selling devices that support advanced video and audio high-speed network playback. The market for mobile video and audio broadcasting will grow since all new devices in the survey supported the capabilities required to playback Internet Broadcasting content on a mobile device.
High Speed Mobile Connectivity
|Percentage of Devices Surveyed
||Required for Internet Broadcasting
|Advanced Web Browsing with||98%||Yes|
|Video and Audio Support||100%||Yes|
|Video and Audio Media Players||100%||Yes|
|High Performance Devices||60%||No (better playback with better performance)|
|High Resolution Displays||100%||Yes|
|OS-Type Application Support||40%||No|
|Advanced Web Browsing||100%||Yes|
|Full Keyboards||60%||No (keyboard makes video playback and browsing easier)|
Brand and Style:
100% of the devices surveyed supported high-speed mobile network connectivity with 98% also supporting Wi-Fi
Device Speed and Performance (60% of devices fall into the high performance category)
Video and Audio Support is Ubiquitous (100% of the devices supported these features)
Advanced Web Browsing with Integrated Video and Audio (100% of the devices supported these features)
OS-Type Application Support