Households with at least one cellphone increased to 81.4% in 2012 (up from 79.4% in 2011);
Households with exactly one cellphone declined to 35.5% from 36.5%;
Households with exactly 2 cellphones increased to 29.2% from 28.0%; and,
Households with 3 or more cellphones jumped to 16.7% from 14.9%.
The monthly bills went up because there are more devices in the average household.
There was other data that I found interesting in the release, despite the numbers being a year old.
Households with a home computer declined year over year to 84.1% from 84.5%. While this is a statistic on person ownership of computers (as contrasted with a device provided by an employer), the number is headed in the wrong direction.
Computer ownership is the denominator that should be used to measure penetration of internet access. Households with internet access increased to 81.5% in 2012 from 80.5% in 2011. That represents 96.9% of households with a computer, up from 95.3%. Only 3.7% of households used dial-up connections in 2012, down from 5.2%.
Despite all of the talk of cord-cutting for TV services, Statistics Canada found 88.3% of us had a wired or satellite TV service in 2012, up from 87.4%.
Scotia Capital released a report earlier today called: “Embrace the Evolution: Analyzing the Financial Impact of Changes in Pay TV, Broadband, and Home Phone Services.”
Among its findings, Scotia says the business rationale for cable consolidation is increasing. “In Canada, we believe the combination of Rogers Communications and Shaw Communications makes more business sense than ever before.”
Some of the highlights include:
Cable and telco wireline revenue growth will remain positive, at approximately 1.0%-1.5% over the next 10 years, as the industry’s focus shifts from traditional pay TV and home phone to broadband Internet;
Over the next 10 years, cable and telco wireline EBITDA growth will be approximately 2.5%-3.0%;
Cable and telco wireline cash flow (cash EBIT) growth will be in the range of 4.5%-5.0% over the next 10 years, primarily driven by EBITDA growth;
Cablecos will show higher growth than telco wireline segments over the next 10 years;
Although the long term view is growth over a 10 year period, there remain challenges over the next few years;
Canadian pay TV segment is about to experience more revenue and margin pressure than ever before;
To protect the TV business and to enhance the user interface and experience, pay TV operators will shift capex toward cloud architecture and IP video delivery;
Scotia Capital observed that telephone companies have been experiencing residential phone decline (driven by wireless substitution) for many years and cable companies are now seeing it, too. “We estimate that, in 2013, over 500K lines were cut because of wireless substitution – the highest annual figure ever for this metric in Canada.”
It is worth the time to read the analysis, led by Jeff Fan.
On Friday, CRTC chair JP Blais wrote to Rogers, because he was “dismayed” following the NFL playoff game between the San Francisco 49ers and Seattle Seahawks.
It wasn’t that the 49ers lost.
He didn’t like the exchange he read on Twitter:
There was a point in the game where the main broadcaster (Fox) thought that the clock went down to the 2-minute warning, a point in the game where broadcasters can usually pack a few commercials back-to-back. So CTV went ahead and inserted its commercials into the CTV version of the game. But the referee put a second back onto the clock allowing one more play. Fox broke away from their commercial quicker than CTV.
As you are aware, there are a number of misconceptions and a certain frustration among Canadian television viewers regarding simultaneous substitution. These are often expressed at this time of year—specifically, during the NFL playoffs and following the broadcast of the Super Bowl game.
In fact, the CRTC has a special website just because of regular complaints about Canadians not being able to access Super Bowl commercials.
The customer replied, “Thank you, I’m informed & appreciate the responses.” Twitter worked!
But apparently, the Chairman didn’t think that the Commission should be taking the heat for its regulations. In his letter to Rogers, the chairman’s letter goes on to state:
Broadcasters have indicated that they benefit tremendously from simultaneous substitution. They have earned many millions of dollars in ad revenues since 1972, when the CRTC first allowed broadcasters to replace American signals with their own. In addition, many television distributors in Canada are now part of the same corporate family as those very broadcasters. As such, members of the broadcasting industry—both broadcasters and distributors—must share in the duty of ensuring that simultaneous substitution is done correctly. They must also share in the responsibility of explaining to Canadians the policy’s benefits and in correcting misinformation in the public sphere.
He goes on to admonish the response from the Rogers social media team:
it would be appreciated if you could remind your customer service representatives that broadcasters choose whether to substitute signals and that both the broadcaster and the distributor are responsible for the quality of the substitution.
Here is the rub. While CTV is part of the corporate family of a TV distributor (Bell), it is not related in any way to Rogers. Rogers involvement in the interaction with the frustrated customer was as a broadcast distributor, obligated by CRTC regulations to insert the CTV feed on top of the Fox channels.
As the first tweet from Rogers said, it wasn’t up to Rogers to make that choice. The customer wanted clarification and the Rogers person correctly stated that it was due to CRTC rules. This had nothing to do with vertical integration and the fact that Rogers also owns broadcast assets. All BDUs in Canada are subject to the same CRTC rules. If the game broadcaster asks for substitution, the BDU has to ignore the fact that its customers may want to see the US feed; as a condition of license, the CRTC requires that the BDU swaps the feed.
Back in 2008, before Bell owned CTV, Bell TV didn’t substitute the CTV feed on the US High Definition broadcast of the 2008 Super Bowl. The CRTC responded harshly:
The Commission expects Bell TV to perform simultaneous substitution of future Super Bowl and similar broadcasts in compliance with the Broadcasting Distribution Regulations, and in the same manner that it regularly performs such substitutions. The Commission also directs Bell TV to confirm in writing, with both the Commission and CTV, within two weeks of the present decision, that it will perform such substitution.
Why did the CRTC target Rogers, the distributor, but not CTV, the broadcaster? Why did the CRTC chair ask Rogers for a “report outlining the training your customer service representatives receive on this issue, as well as copies of fact sheets or other materials at their disposal.”
The tweets from the Rogers social media team appear to be accurate and responsive, considering the 140 character limitations of the medium.
At the end of the day, the CRTC is responsible for its own regulations.
The schedule is starting to get in shape and the first major email blast is going out today for The 2014 Canadian Telecom Summit, which will take place June 16-18 at the Toronto Congress Centre.
For three full days, The 2014 Canadian Telecom Summit will again deliver thought-provoking insights from the prime movers of the industry. The Canadian Telecom Summit gives you the chance to hear from and talk with them in both a structured atmosphere of frank discussion and high-octane idea exchange and schmooze in a more relaxed social setting of genial conversation over espresso or cocktails.
Join your colleagues in listening to and participating in executive presentations from those who have the greatest influence on the direction of Canadian telecommunications, broadcasting and information technology. Hear from global leaders and local trend-setters. Meet with your suppliers, customers and partners. Challenge your competition.
Attracting the senior-most professionals from around the globe, The Canadian Telecom Summit is the forum for the broad cross-section of stakeholders to meet, exchange views, share ideas, challenge assumptions and plan for the future.
If you haven’t received our email blast, check your spam folders and be sure to include “gstconferences.com” on your email white list. Sign up for our conference mailing list here.
This year, Tuesday January 28 is Bell’s “Let’s Talk Day“.
On January 28, Bell will donate 5 cents to mental health programs for every text message sent and every long distance call made by Bell and Bell Aliant customers.
The 2013 campaign generated $4.8M, nearly 25% more than the year before. Bell has now committed $62,043,289.30 to Canadian mental health based on its
original $50-million donation plus the results of the last 3 years of Bell Let’s Talk Day: $3,303,961.80 in 2011; $3,926,014.20 in 2012; and $4,813,313.30 in 2013.
Yesterday, a $2.5M donation was announced by Bell to mark the 25th anniversary of Kid’s Help Phone, to support the mental health and well-being of young people across Canada.
But this is about so much more than the money being donated and distributed.
Bell Let’s Talk Day is about talking. It is a day for talking about something that makes many people uncomfortable.
One in five Canadians will suffer from a mental illness at some point in their lives, yet still, mental health is an issue that most of us avoid talking about.
With its advertising campaign leading up to January 28, Bell Let’s Talk is about ending the stigma associated with mental health issues, or as I wrote in 2010, getting people talking about un-mentionables.
There are very few national brands that are powerful enough to take the lead in being an anchor supporter of mental health research and treatment; Bell’s approach – getting people to talk about it – aligns with communications, which is what the company does for a living.
Anti-stigma is one of the four pillars of the program. Overcoming the stigma is one of the biggest hurdles for anyone suffering from mental illness. Bell Let’s Talk Day is driving a national conversation, helping to reduce the stigma, promoting awareness and understanding as a first step toward lasting change.
I’d like you to support this initiative. Visit Bell’s website for more information or check out the press release.
