Maravedis Predicts Internet Penetration In Canada To Exceed 70% By 2017

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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 Areas (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 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 – a 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.

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