1 / 51

Canada’s Information and Communications Technologies Industry

Canada’s Information and Communications Technologies Industry. Presentation to Multimedia Companies Ministry of Economic Development Hamburg October 18, 2000. Michael Binder Assistant Deputy Minister Spectrum, Information Technologies and Telecommunications. Canada….

dirk
Download Presentation

Canada’s Information and Communications Technologies Industry

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Canada’s Information and Communications Technologies Industry Presentation to Multimedia Companies Ministry of Economic Development Hamburg October 18, 2000 Michael Binder Assistant Deputy Minister Spectrum, Information Technologies and Telecommunications

  2. Canada… …More than a nice place to visit 2

  3. Canada With the Highest Quality of Life… Human DevelopmentIndex* Canada ranks1st for seventh yearin a row UK U.S. Japan Iceland Norway Sweden Belgium Australia Netherlands Source: United Nations, Human Development Report, 2000 3

  4. Canada… A Miracle of Communications 4 4

  5. Considering Our Geography & Climate… • 2nd Largest Country in the World (9,976,140 sq. km) • 6 time zones • Extreme temperature ranges • 31 million people - low density • Nearly 90% of the population is concentratedwithin 160 km of the US/Canada border • strong North-South pull vs East-West …Not Bad, eh? 5

  6. 1876 We Have A Long History of Achievements... Alexander Graham Bell World’s first long distance telephone call from Brantford to Paris, Ontario …Making us a world leader in communications 6

  7. 1901 We Have A Long History of Achievements... Guglielmo Marconireceivesfirst transatlanticwireless message …Making us a world leader in communications 7

  8. 1906 We Have A Long History of Achievements... Reginald Fessenden broadcast first voice/music …Making us a world leader in communications 8

  9. 1972 We Have A Long History of Achievements... First geostationary domestic satellite communications …Making us a world leader in communications 9

  10. CA*net 1993 1 page per second (56.6 Kbs) Pages of text Nearly 1,000,000X Faster 1 million pages per second (40 Gbs) Pages of text We Have a Long History of Achievements… 1999 - World’s First, Fastest All-Optical National Network CA*net3 1999/2000 …Making us a world leader in communications 10

  11. 100% 87% 72% 43% 19% 2% 0% We Have a Long History of Achievements… 1999 First country to connect all public schools and libraries to the Internet 93 94 95 96 97 98 Mar 99 …Making us a world leader in communications 11

  12. Enhanced efficiency, innovation and competitiveness Universal access and affordability Efficient and optimum use of spectrum Promote innovation and R&D National identity & cultural sovereignty Make predominant use of Canadian resources Independent regulatory body Authority comes from the Telecommunications Act and the Broadcasting Act And a Pro-Competitive Environment Telecommunications Act 1993, amended in 1998 Radiocommunication Act 1989 Broadcasting Act 1991 Canadian Radio-Television and Telecommunications Commission(CRTC) Government plays a role where market forces fail 12

  13. 98.4 68.6 Canada Canada How Do We Compare in G-7?First in Telephone and Cable Penetration % of Households withCable TV Subscribers, 1998* % of Households withTelephone Service, 1998 98.0 96.9 63.4 95.0 46.9 94.2 89.3 11.5 6.8 0.8 Germany France Italy U.S. U.S. U.K. Italy France U.K. Germany * Estimates Source: World Telecommunication Development Report, ITU 1999 Source: World Telecommunication Development Report, ITU, 1999 13

  14. 744 327 Canada Canada How Do We Compare in G-7?First in Telephone Affordability Annual Business Telephone Charges US $ PPP (Peak Rate) Annual Residential Telephone Charges US $ PPP (Peak Rate) Japan 816 340 U.S. U.K. 826 348 Japan France U.K. 976 367 Germany Germany 984 419 U.S. France 1037 420 Italy 1067 436 Italy 14 Source: OECD Communications Outlook, 1999 (August 1998 data)

  15. $31 $0.09 Toronto Canada How Do We Compare in G-7?First in Internet & Wireless Affordability Basic Internet Access Costs Wireless Communications Costs Cost of 20 hours per month, 1998 in U.S. $ PPP Price per minute, 1999 in U.S. $ PPP $0.36 $0.36 $0.32 $72 $70 $0.31 $68 $0.29 $52 $0.18 $42 $40 Boston London Tokyo France Germany Italy Paris Berlin Rome U.K. Japan U.S. Source: Yankee Group, Wireless / Mobile Communications Global Report, Volume 3, No. 16, May 1999 Source: OECD Communications Outlook, 1999 15

  16. 360 361 Canada Canada How Do We Compare in G-7?Second to US in Internet Users & in PCs Internet Users Per 1,000 Inhabitants - 1999 Personal Computers Per 1,000 Inhabitants - 1999 510 306 398 297 287 221 192 213 193 145 96 87 U.K. U.S. Japan Italy U.K. U.S. Japan Italy Germany France Germany France Source: International Telecommunication Union, Telecommunications Indicator, July 2000 16

  17. 4.2 3.8 2.6 2.5 1.7 1.3 0.7 0.0 U.S. France Germany Japan G-7Average Canada U.K. Italy Strong Economic Growth Real GDP Growth in G-7 Countries*, 1997-1999 • Canada’s economy has outperformed other G7 countries * Average of year-to-year percentage changes in real GDP Source: Main Economic Indicators, OECD, April 2000 17

  18. An Excellent Post Secondary System RANKING OF ELECTRICAL ENGINEERING UNIVERSITY PROGRAMS Institution Score U.S. Cdn. Rank Rank • 1998 U.S. Gourman report scored 10 Canadian electrical engineering programs in the top 22, and 18 in the top 40 • Canada’s 67 universities and colleges produce more than 25,000 graduates per year in math, engineering and pure and applied sciences M.I.T. 4.92 1 Stanford 4.91 2 Berkeley 4.88 3 Illinois 4.86 4 Toronto 4.86 1 UCLA 4.82 5 McGill 4.82 2 Cornell 4.81 6 U.B.C. 4.81 3 McMaster 4.80 4 Purdue 4.79 7 Southern California 4.77 8 Princeton 4.76 9 Michigan 4.75 10 Carnegie Mellon 4.74 11 Polytechnic-Brooklyn 4.73 12 Queen’s 4.72 5 Alberta 4.72 6 Calgary 4.71 7 Polytechnique, Mtl. 4.70 8 Saskatchewan 4.70 9 Manitoba 4.70 10 “The superior universities, availability of highly skilledworkers, along with excellent tax incentives for research and development make Canada an ideallocation for Wyeth-Ayerst Canada Aldo Baumgartner President and CEO, Wyeth-Ayerst Canada SOURCE:The Gourman Report, Undergraduate Programs, 10th Edition 1998 18

  19. Canada 0.70 Low R&D Costs Relative Competitiveness of R&D Tax System — 1998 • Generous R&D tax treatment • Immediate and full write-off for R&D capital equipment • Firms reduce R&D costs through direct investment or sub-contracting in Canada Germany 1.05 Italy 1.03 Sweden 1.02 Japan 1.01 U.K. 1.00 Mexico 0.97 0.92 Korea France 0.91 Australia 0.89 0.88 U.S. The B-index represents a ratio of the after-tax cost of a $1 expenditure onR&D divided by 1 less the corporate tax rate. A lower B-index indicates amore competitive R&D tax system Source: Conference Board of Canada June 1999. 19

  20. 81 Canada Low Labour Costs Cost of Labour — Manufacturing*, 1999 • A competitive labour market is keeping wage settlements down • According to the U.S. Bureau of Labour Statistics, labour costs in Canadian manufacturing (wage and non-wage) are lowest in the G-7 140 $ U.S. per hour, PPP 109 100 94 86 86 Germany U.S. Italy Japan France U.K. • * Total compensation costs include direct pay, and the cost of other labour taxes, employer expenditures for legally required insurance programs and contractual and private benefit plans. • Source: U.S. Bureau of Labor Statistics 20

  21. 5th Canada A First-Class Technological Infrastructure Technological Infrastructure* World Rank, 1999 • Second only to the U.S. among the G-7 • Canada ranks above or very close to the U.S. in terms of Internet users and Internet hosts, computers per capita, and computer instructions per second • Canada is considered to have the best overall technology-people combination in the world 1st 14th Index 20th 21st 23rd 28th U.S. France U.K. Italy Germany Japan Index * Standing among 46 countries. Index based on 12 characteristics including investment in telecommunications, computers in use, computer power, internet connections, number of telephone lines, cost of telephone calls and use of robotics. Source: World Competitiveness Yearbook, 2000 Canada U.S. France Germany U.K. Japan Italy 21

  22. 300 mi St. John's Edmonton Charlottetown 600 mi Québec Fredericton Regina Calgary Montréal Victoria Vancouver Halifax Ottawa Winnipeg Seattle Toronto Boston Windsor Milwaukee New York Chicago Detroit Philadelphia Cleveland Baltimore Pittsburgh St. Louis Washington San Francisco Denver Atlanta Los Angeles Houston Miami Mexico City Access to Largest Market in the World • Canada-U.S. cross border trade $1.25 billion a day • NAFTA — access to: • 400 million people • GDP $9.4 trillion U.S. • In addition to eliminating tariffs, NAFTA provides procedures for: • border facilitation • movement of personnel • investment and intellectual property protection • product certification Source: CIA, 1998 World Fact Book 22

  23. Canada Welcomes Foreign Investment Distribution of Foreign Direct InvestmentBy Industry • Foreign direct investment in Canada has more than doubled since 1988 • Increasingly more investment goes to knowledge-based industries in high-tech manufacturing and services sectors 1999 1988 Machinery & Transportation $114 Billion $240 Billion Source: Statistics Canada 23

  24. The World is Changing… • Technology advancing rapidly • Monopolies to competition • Trade barriers falling - globalization • Convergence of technologies, services & markets • Mergers & acquisitions mania - industry restructuring • Dramatic growth in wireless communications • Phenomenal growth of the Internet No end in sight 24

  25. Canada is a Trading Nation Trade in Goods and Services* - 1971 vs. 1999 % of GDP 1971 85.3 75.8 1999 66.1 58.7 51.7 50.9 50.0 43.8 41.2 39.7 31.8 30.8 28.2 20.7 20.3 10.8 Canada U.S. U.K. Italy France Germany Finland Japan * (Exports + Imports)/GDP Source: OECD Economic Outlook, June 2000 25

  26. National Vision is Essential Partnerships are Key Speed Wins We Are in a Global Race Where ... 26

  27. A National Vision… "Make the information and knowledge infrastructure accessible to all Canadians, therebymaking Canada the most connected nation in the world." Information Highway Advisory Council 1995,1997 Speech from the Throne 1997, 1999 Budget Speeches 1998, 1999, 2000 PM Speeches 1998, 1999, 2000 ...for Connecting Canadians 27

  28. Canada Online CanadianContentOnline ElectronicCommerce Connecting Canada tothe World Smart Communities Canadian Governments Online A Six Part Agenda for National Leadership To Make Canada theMost Connected Country in the World 28

  29. A Six Part Agenda for National Leadership Canada Online ElectronicCommerce Canada Online CanadianContentOnline Canadian Governments Online Smart Communities Connecting Canada tothe World Ensuring Canadians have affordable access to the best Information Highway possible 29

  30. A Six Part Agenda for National Leadership SmartCommunities ElectronicCommerce Canada Online CanadianContentOnline Canadian Governments Online Connecting Canada tothe World Smart Communities 12 demonstration projects, models for using ICT in new and innovative ways… New model for community development 30

  31. A Six Part Agenda for National Leadership CanadianContentOnline ElectronicCommerce Canada Online CanadianContentOnline Canadian Governments Online Connecting Canada tothe World Smart Communities Bringing Canadian Content and Culture Into the Digital Age 31

  32. A Six Part Agenda for National Leadership ElectronicCommerce CanadianGovernmentsOnline Canada Online CanadianContentOnline Canadian Governments Online Connecting Canada tothe World Smart Communities Be a model user, and ensure Canadians havethe government most connected to its citizensby 2004 32

  33. A Six Part Agenda for National Leadership ElectronicCommerce ElectronicCommerce Canada Online CanadianContentOnline Canadian Governments Online Connecting Canada tothe World Smart Communities Making Canada a Centre of Excellence for electronic commerce: Capturing a 5% share of the world market 33

  34. A Six Part Agenda for National Leadership ConnectingCanadato the World ElectronicCommerce Canada Online CanadianContentOnline Canadian Governments Online Connecting Canada tothe World Smart Communities Branding Canada to the World 34

  35. Branding Connectedness... …to Canadians 35

  36. Tremendous Success... 100% of schoolsand librariesconnected Households & SMEs: 42% 69% Use the Internet 250,000computers to schools 10,000 volunteer organizations 10,000 CAP sites World-leadingE-Com Policy Framework CA*net3: World’s fastest Internet backbone 12 Smart Communities 36

  37. …Has Made Canada a World Leader Connectedness Rankings* Conference Board of Canada – 10 Country Comparison Socio- Economic Enablers Overall Connectedness Infrastructure Access Affordability Usage U.S. Canada Sweden Finland Australia Japan U.K. Germany France Italy 1 2 3 4 5 6 7 8 9 10 1 2 6 3 5 9 5 7 9 10 4 3 1 2 6 5 8 7 10 9 4 1 1 3 6 7 5 8 9 10 1 2 4 7 3 5 5 8 10 9 1 2 6 9 3 4 9 7 5 10 * Based on a composite index. The comparisons were based primarily on 1997-98 data. Source: Conference Board of Canada But things can change quickly 37

  38. “Provide increased access to high-speed Internet service for classrooms and libraries and stimulate the production of Canadian multimedia learning content and applications.” Speech From the Throne, 1999 Shift Focus to Broadband • Key applications needs full interactivity(tele-learning, tele-health, e-com) • Need to bridge digital divide • Must increase skilled labour pool and preparenext generation knowledge workers Reaping the Benefits of the Networked Economy 38

  39. Worldwide Mobile and Fixed Telephone Subscribers Millions 2,000 1,500 Fixed Local Access 1,000 Mobile Local Access 500 0 Source: ITU, “World Telecommunication Development Report: Mobile Cellular” 1999 1990 2000 2010 Projecting 20 M Canadian subscribers by 2004 Source: IDC,Baby’s First Steps: The Canadian Wireless Data and Internet Market Forecast,1999-2004; June 200 Shift to Mobile Services 39

  40. 2000 1998 LMCS 3.6 GHz 25 1993 1998 8.1 GHz MCS 20 WLL 15 Cumulative Average Amount of Spectrum x 1000 MHz 1980 1993 10 DRB/DTV 3.7 GHz 5 DBS/DTH 0 3G 1980 82 84 86 88 90 92 94 96 98 2000 Source: Industry Canada compilations Driving Release of New Spectrum… …Primarily for Commercial Use 40

  41. 21% 23% Not Online 28% 35% 42% 52% 62% 44% 50% Dialup 53% 53% 51% 44% 36% 27% 35% 19% 2% Broadband* 12% 7% 4% 1999 2000 2001 2002 2003 2004 2005 Growth of the Broadband Internet Estimated connectivity status of Canadian & US households(as proportion of total HH: 1999-2005) * Includes cable modem and DSL It has been estimated that 35% of Canadian Households will have high-speed Internet access by 2005. 41 Source: View from the Living Room, Omnia Communications, (July 2000)

  42. Cable Internet ReadyHouseholds and Subscribers Growth of New Services 1000000 61% 800000 600000 32% 400000 12% 200000 3% 0 Dec-98 Dec-99 Mar-00 Internet Ready Internet Subscribers U.S. Canada Digital TV Cable modem DTH Source: CCTA / Individual Company Reports Broadcast Distributors High Penetration Rates and New Services 42

  43. New Networked Economy & Society USE CONTENT INFRASTRUCTURE Beyond Connectedness... 43

  44. * Excludes ICT wholesaling 11998 Data 21999 Data 31997 Data Source: ICT Statistical Review, Industry Canada. Canadian ICT Sector at a Glance • Revenues $116 billion1 • Employment 512,0001 • R&D $4.4 billion2 • Share of GDP* 5.7%2 • Share of private sector R&D 46%2 • Total exports $31 billion2 • Total imports $54 billion2 • Establishments 26,0003(including 1,300 in manufacturing) 44

  45. 5.0 times 4.5 times 6.1 times 4.0% 24.3% 0.4% 2.0% 5.3% 23.6% GDP (annualized) Employment Exports Total Economy ICT Sector only Leadership required to ensure growth continues A Key Sector of the Economy ICT Impact on the Canadian Economy Growth of Canadian Economy VERSUS Growth of ICTs from Q1 2000 to Q2 2000 "Canada's growing high-tech sector is emerging as the backbone to this stellarhigh growth, low-inflation performance." Adrienne Warren, Senior Economist, Bank of Nova Scotia "The main story seems to be that the economy is being driven by a high-tech engine." Sal Guatieri, Senior Economist, Bank of Montreal 45

  46. 1999 Private Sector R&DExpenditures($ millions) 4,382 982 910 660 ICT Sector Aircraft & Parts Engineering & Scientific Services Pharmaceutical & Medicine Most Innovative Sector in Canada • ICT R&D expenditures were $4.4 billion in 1999; 46% of the total Canadian private sector R&D • Five of the top ten R&D performers in Canada are ICT firms 46

  47. Broadly-Based Strengths Narrowly-Focused Strengths • Telecom Infrastructure • Cable Infrastructure • Satellite Infrastructure • Telecom & Network Equipment • Optical Technologies • Software development (data mining, security, educational/training, animation & graphics) • Semiconductor design • Wireless technologies • Electronic mfg. Services Our Areas Of Expertise Are... 47

  48. Clusters of Activity Across the Country Ottawa Cisco Mosaid Cognos Newbridge/Alcatel Corel Nortel Networks CRC NRC Crosskeys Philsar Semi. Jetform QNX Software JDS Uniphase Siemens Mitel Tundra Toronto 724 Solutions GEAC Alias Wavefront Gennum ATI Technologies Hewlett-Packard Celestica Hummingbird Certicom IBM Extend Media Lucent Edmonton Alberta Microelectronics Corp. CEL Corp Computronix Intuit Canada Logican Sentai Software Corporation TR Labs Wiband Communications Atlantic Provinces ComDev Wireless Litton Sys. Deltaware Sytems Nautel DMR Group Nautical Data InfoInteractive Satlantic Instrumar Simscape JOT Inc. Tecknowledge Health KnowledgeHouse xWave Calgary Computing Devices Canada Harris LSI Logic Nortel Networks (Wireless) Novatel Sanmina Smart Technologies Wi-Lan Montreal BCI Matrox SR Telcom BCE Emergis Motorola Teleglobe CGI Microcell TIW CIGR MPB Viasystems CITR Nortel Networks Virtual- C-MAC Positron Prototype Eicon Primetech Ericsson Softimage Marconi Comm. Vancouver Electronic Arts Canada MDSI Mobile Data Infowave Software Seagate Software Pivotal Sierra Wireless PMC Sierra Spectrum Signal MacDonald Dettwiler Processing 360networks Inc. Kitchener-Waterloo Com Dev Open Text Dalsa PixStream Electrohome Raytheon Canada NCR Research in Motion 48

  49. Canadian ICT Success Stories • 75% of all backbone Internet traffic in North America is carried on Canadian products • First to deliver 10 gigabit/second systems, now selling to over 90% of the world market • Largest designer and manufacturer of optical components in the world • 1999 Info World Product of the Year - the Blackberry, a wireless communications device • Canadians develop over 60% of the special effects software used in Hollywood • Euro coin was designed using Canadian software 49

  50. Canada… A Great Place to Invest 50

More Related