CANADIAN INTERNET SERVICE PROVIDERS MARKET REPORT

2002 EDITION

NBI/Michael Sone Associates
193 Church Street
Toronto, Ontario
M5B 1Y7
Telephone # (416) 360-0424
Fax # (416) 360-7546
E-mail: msone@nbicanada.com

May 2002

NOTICE

THIS REPORT IS COPYRIGHTED

THE CONTENTS OF THIS DOCUMENT ARE THE INTELLECTUAL PROPERTY OF NBI/MICHAEL SONE ASSOCIATES INC. AND, AS SUCH, ARE PROTECTED BY CANADIAN COPYRIGHT LAW. REPRODUCTION OF THIS DOCUMENT, IN WHOLE OR IN PART, BY ANY MEANS AND FOR ANY PURPOSE (INTERNAL OR EXTERNAL TO THE BUYER'S COMPANY) WITHOUT THE PRIOR PERMISSION OF THE PUBLISHER IS A VIOLATION OF CANADIAN AND INTERNATIONAL COPYRIGHT LAWS.

FOR INFORMATION ON OBTAINING ADDITIONAL COPIES OF THIS REPORT CALL (416) 360-0424, FAX U.S. AT (416) 360-7546 OR SEND AN E-MAIL TO msone@nbicanada.com.

PLEASE VISIST OUR WEB SITE AT www.nbicanada.com FOR A LISTING OF OTHER NBI/MICHAEL SONE ASSOCIATES' REPORTS PUBLISHED OR IN PREPARATION.

Table Of Contents

Section	Page

About This Report	vii

1.0 Market Overview and Analysis	1

2.0 ISPs - The Canadian Landscape	10
2.1 The Need for (Different) Speeds	18

3.0 ISPs - Telephone Companies	23
3.1.1 Aliant	26
3.1.1.1 MTT	27
3.1.1.2 NBTel	30
3.1.1.3 NewTel	32
3.1.2 Bell Canada	34
3.1.2.1 Bell Canada Sympatico	35
3.1.2.2 Bell Canada Business	39
3.1.2.3 Bell ExpressVU	43
3.1.2.4 Bell Nexxia	46
3.1.2.5 Bell Nexxia Carrier Services	50
3.1.3 MTS	53
3.1.4 SaskTel	58
3.1.5 TELUS	61
3.1.5.1 TELUS Consumer	65
3.1.5.2 TELUS Business	68
3.1.5.3 TELUS Qu?ec	70
3.1.5.4 PSINet	72
3.1.5.5 TELUS GT&PS	73

4.0 ISPs - Cable Companies	76
4.1 The @Home Network	78
4.1.1 Cogeco Cable	79
4.1.2 EastLink	86
4.1.3 Regional Cablesystems	87
4.1.4 Rogers Cablesystems	89
4.1.5 Shaw Communications	95
4.1.6 Vid?tron lt?	98

5.0 National and Regional ISPs	103
5.1.1 AOL Canada	103
5.1.2 AT&T Canada	110
5.1.3 AT&T Global Network Services	113
5.1.4 GT Group Telecom	118
5.1.5 Look Communications	121
5.1.6 Pathway	126
5.1.7 Primus Canada	130
5.1.8 Inter.net Canada	136
5.1.9 Sprint Canada	137
5.1.10 WorldCom Canada	142

6.0 Smaller ISPs	150
6.1.1 ILAP	150
6.1.2 Magma Communications	153
6.1.3 PCNet	160
6.1.4 Radiant Communications	162
6.1.5 SturdyNet	165
6.1.6 Technovision	166
6.2 (Almost) Free ISPs	169
6.2.1 3web (Cybersurf)	169
6.2.2 NetZero Canada	171

7.0 Alternative Networks	175
7.1 Satellite Access	175
7.1.1 C-Com	175
7.1.2 Quick Link	178
7.1.3 RAMTelecom	180

8.0 Regulatory Matters	181
8.1 Introduction	181
8.2 DSL Competition	182
8.3 Rebroadcasting	183
8.4 Cableco Issues	184

9.0 Technology	186

10.0 The Mobile Internet	190

List of Figures, Exhibits and Appendices

Section		Page

Figure 1	Canadian ISP Market, Revenues, 2000-2005	8
Figure 2	Canadian ISP Market, Dial-Up and HS Subscribers, 2000-2005	9
Exhibit 1	Revenues and Market Shares, by ISP, 2000-2003	193
Exhibit 2	Revenues & Number of Customers, by ISP type, 2000-2003	193
Exhibit 3	Dial-Up Subscribers by ISP, 2000-2003	194
Exhibit 4	Dedicated Accounts by Major ISP, 2000-2003	194
Exhibit 5	Dial-Up, DSL, Dedicated and Cable Subscribers, by ISP, 2001-2003	195
Exhibit 6	Sources of ISP Revenues, 2001	195
Exhibit 7	Provincial Distribution of Dial-up and HS Subscribers, by ISP, 2001	196
Exhibit 8	Cablecos: Internet Subscriber Base & Revenues, 2001-2003	197
Exhibit 9	Telcos/IXCs: Dial-Up Subscribers & Revenues, 2000-2003	198
Exhibit 10	Telcos/IXCs: DSL Subscribers & Revenues, 2000-2003	199

About This Report

The Canadian Internet Service Providers Market Report, 2002 Edition is NBI/Michael Sone Associates' fourth report on the Canadian Internet market and continues to be the most comprehensive and rigorously researched document available on Canada's most dynamic and fast-paced communications industry sector.

The report takes into account both the continued increase in Internet use by individuals and businesses alike, as well as the uncertainty of growth rate that replaced recent unbridled optimism. This edition has been expanded to include a selection of smaller ISPs that may gain prominence in the near future.

At around 200 pages, the report is divided into three main sections. The first serves as an examination of the ISP business and goes on to discuss the Internet environment in Canada. This includes major issues and developments pertinent to the industry including the continuing merger and acquisition activities, the acceleration of market penetration of high-speed cable and DSL access technologies. The second section provides qualitatively and quantitatively intensive individual profiles of 32 significant national and regional ISPs including phone company and cable company affiliates as well as the two major free access providers and satellite-based ISPs. Finally, there are updates on developments in regulatory issues and technology. The third section contains a series of detailed figures, exhibits and appendices that illustrate dial-up, high-speed and dedicated subscribers & revenues, market shares, provincial segmentation and forecasts. Each industry segment has been explored so that the report presents services offered, marketing activities, pricing, as well as technology and application trends.

A Note on Accuracy

The accuracy of the information in this report cannot be guaranteed. The information is the most recent available at the time of research and writing, but is subject to change. Information on specific companies should not be construed as official statements from those companies. Rather, such information represents the opinions of NBI/Michael Sone Associates. All figures, unless otherwise indicated, are NBI/Michael Sone Associates estimates. Where an error has occurred, NBI/Michael Sone Associates will be pleased to publish any demonstrably more accurate information that is supplied to us.

As always, NBI/Michael Sone Associates welcomes comments on this report and suggestions for future editions. Please call us anytime at (416) 360-0424 or e-mail at msone@nbicanada.com.

[Comment] [ Back ] [ Home ] [ Up ] [ Next ]

http://www.nbicanada.com/cispmr2002.html