Wednesday, October 25, 2006


Local competition accelerating

CRTCAs part of Public Notice 2006-12, the process to review the Local Forbearance decision, the CRTC gathered local telecom market statistics from the various industry participants.

Last Friday, the Commission published aggregated statistics for residential service. The data shows industry-wide figures for year-end 2004, 2005 and the first 8 months of 2006.

As of August 31, 2006, competitors added as many new lines (slightly more than 0.5M) in the first 8 months of the year as they added in all of 2005.

Interestingly, annual total local service revenues are constant in 2004 and 2005 at about $4.9B. Revenues appear to be increasing moderately in 2006, trending toward exceeding $5B, despite an acceleration in the rate of migration to alternate service providers.

And competitors are getting better at keeping customers. Churn has dropped from 2.7% down to 2.2%.

Category31 December 200431 December 200531 August 2006
non-ILEC NAS443,373964,8781,487,845
monthly churn2.7%2.4%2.2%
industry revenues ($M$)$4,977$4,949$3,353

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