1 / 144

Canadian Telecommunications

Canadian Telecommunications. David Lee Jeremy Ma Raymond Xie Saurabh Suryavanshi . Contents. Canadian Telecommunications Industry Manitoba Telecom Services (MBT-T) Rogers Communications (RCI.NV.B-T) TELUS Corporation (T-T). Industry Characteristics. Telecommunications Industry.

jin
Download Presentation

Canadian Telecommunications

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. Canadian Telecommunications David Lee Jeremy Ma Raymond Xie Saurabh Suryavanshi

  2. Contents • Canadian Telecommunications Industry • Manitoba Telecom Services (MBT-T) • Rogers Communications (RCI.NV.B-T) • TELUS Corporation (T-T)

  3. Industry Characteristics Telecommunications Industry

  4. Industry Overview • Communications Services Industry • Wired telecommunications (5171) • Wireless telecommunications (5172) • Resellers, Satellite, Other services (5173, 5174, 5179) • Cable and other program distribution (5175) • Major companies • Bell Canada Enterprise (BCE,) • Aliant (AIT, 53% owned by BCE) • Bell Nordiq (BNQ, 63% owned by BCE, IT) • TELUS (T) • Rogers Communications (RCI.NV.B, 86% owned by E. S. Rogers) • Manitoba Telecom Services (MBT)

  5. Industry Key Players Wireless & Paging $9.5 Bilion Wired Line Long Distance Internet / Data $23.3 Billion Wired Cable DTH/MDS $5.9 Billion 2004 Revenue $40.0 Billion Communications Resellers & Others $1.3 Billion

  6. Market SegmentRevenue, 1998-2004

  7. Market SegmentSubscribers, 1998-2004

  8. Industry Characteristics • Large contribution to economy • $40.0 billion (2004), $24.8 billion of revenue (1997 constant $) • 2.4% of total Canadian GDP • Highly capital intensive • Effective cap-ex management and allocation (Long term) • Saturated market • Increasing unit revenue  Service development capability • Reducing costs Organizational efficiency • Market penetration  Marketing as a key factor • Blurred Boundaries with Cable industry • Traditionally tough regulations greatly reduced • Cablecos with VoIP vs.Telcos with IPTV  Strategic position

  9. Industry Characteristics Wireline Communications Services

  10. Wireline CommunicationsSegment Overview • ILECs: Incumbent Local Exchange Carriers • Used to be regional monopoly with own network • BCE, TELUS, MTS, SaskTel, Aliant, NorthwesTel • CLECs: Competitive Local Exchange Carriers • Allowed in 1997, if registered with CRTC • However, hard to compete with ILECs • Allstream (acquired by MTS), Call-Net (Sprint), ExaTel, EastLink • Resellers • Rent networks from ILECs or CLECs • Marketing with competitive rates more actively with Long Distance • Competition between BCE & TELUS • Since 2000, TELUS expanding to eastern Canada to become No. 2 • BCE reacting to successfully expand to western Canada

  11. Wireline CommunicationsTelecommunications Carriers • TELUS to East / BCE to West since 2000

  12. Wireline CommunicationsCompetitive Landscape • Wireline Local Services • ILECs dominating the market 97.3% • CLECs not able to compete with ILECS • Gradually declining due to • Customer migration to wireless • Reduced demand of 2nd phone line • Wireline Long Distance Services • ILECs monopoly eliminated in 1992 • CLECs and resellers effectively competing with over 26% share • Rapidly shrinking with revenue $5.5 B in 2004 • Alternative communications replacing the service • Wireless and text messaging (SMS) • Email, Instance messaging & Voice chatting • Internet and cable telephony (VoIP)

  13. Wireline CommunicationsLocal & Long Distance Revenue, 1993 - 2004

  14. Wireline CommunicationsWired Access Lines, 1993 - 2004

  15. Industry Characteristics Wireless Communications Services

  16. Wireless CommunicationsSegment Overview • Dominated by Big 3 • Rogers & Microcell 35.3% • TELUS Mobility 29.4% • Bell Mobility 27.2% • Profitability • Extreme competition lead by Microcell until early 2002 • With declining ARPU, industry recorded deficit in 2000, 2001 • Rogers leading the market after its Microcell acquisition in 2004 • Spectrum & Technology • Most Spectrum auctioned in 2001 ($1.5 B)  BCE, Rogers, TELUS • Most carriers completed 2.5G (1X CDMA or GSM/GPRS) • Bell & Rogers leading 3G transition  Important for service development (Increased ARPU, marketing)

  17. Wireless CommunicationsRevenue & ARPU, 1999 - 2004 Industry deficit

  18. Wireless CommunicationsWireless Technology

  19. Industry Characteristics Internet & Data Services

  20. Internet & Data Services Segment Overview • Large Telcos & Cablecos • Able to utilize existing telephone and cable line • Telephone access line: 20 million • Wired cable line: 10.7 million (76.5% households) • Requires minor modification and modem • CLECs and Resellers • Usually provide services on rented network basis • Compete based on the rate • Offer additional services (web hosting, long distance service …) • Market Share & Trend • Dial-up: 27.2% • Digital Subscriber Line (DSL): 34.4% • Cable line: 39.4% • DSL & Cable line consistently increasing • Satellite and Wireless internet services starting to grow

  21. Internet & Data Services Subscribers, 2000-2004

  22. Internet & Data Services Market Share, 2003 No. 2 No. 3 No. 4 No. 1

  23. Industry Characteristics Margin & Network Investment

  24. TelecommunicationsOperating Margin, 1997-2004

  25. TelecommunicationsOperating Margin, Cap-Ex, 1998-2004 High speed Internet 2.5G

  26. TelecommunicationsWired & Wireless Subscribers, 1998-2004

  27. Industry Characteristics Telcos (IPTV) vs. Cablecos (VoIP)

  28. VoIP vs. IPTV Technology Overview • VoIP: Voice over Internet Protocol • Stable technology with satisfactory Technology • Requires relatively small bandwidth • Uses public Internet network • In service by major Cable companies (Shaw, Rogers) • IPTV: Internet Protocol Television • New technology developed by Microsoft • Requires broad bandwidth • Technologically advanced compared to traditional digital TV • Showing fast penetration (MTS 18% in less than 2 years) • Competitive Implication • Telcos & Cablecos compete head to head • 20 – 25% of each market expected to be lost • More impact on Telecoes than Cablecos

  29. VoIP vs. IPTV Impact on Competition between Cablecos & Telecos Telcos’ Exposure Cablecos’ Exposure

  30. Manitoba Telecom Jeremy Ma

  31. Table of Contents • Company Overview • Company Analysis • Financial Analysis MTS Extensive fibre optic network: spans more than 24,300 km.

  32. Company Overview • Third largest telecommunication provider in Canada • Operate through two divisions: national and Manitoba division Provide Voice, Data, Video to residential and business customers in Manitoba.

  33. MTS History • 1997 Manitoba Telecom Service became a public traded company • 1999 Strategic alliance with Bell • 2000 Initiate broadband service in Manitoba • 2004 End strategic alliance with Bell in Western Canada • 2004 Acquired Allstream ($1.6 billion) and become the 3rd largest national telecom provider in Canada • 2004 MTS Allstream strategic alliance with BT: broaden its IP based technology service globally • 2005 MTS Allstream acquired Delphi Solutions Corp. • 2005 Pierre Blouin named new Chief Executive Officer of Manitoba Telecom Services Inc. and MTS Allstream Inc.

  34. Company OverviewManagement Team Pierre Blouin CEO 2005~ • a seasoned telecommunications executive, who spent 20 years + at BCE Inc. • 2003 ~ 2005 Group President, Consumer Markets, Bell Canada • 2002 ~ 2003: CEO of BCE Emergis • 2000 ~ 2002President and CEO of Bell Mobility Wayne S. Demkey, CA CFO 2001~ • Joined MTS since 1996. • 11 years as senior managers at KPMG Kelvin A. Shepherd, P.Eng. President, MTS (Manitoba) 2006~ • CTO of MTS 2000 ~ 2005 • 20 years with Saskatchewan Telecom John A. MacDonald President, MTS (ALLSTREAM) 2002 ~ • CEO of Leitch Technology Corp. • Executive Vice President, CTO, COO, President of Bell Canada 1994 ~ 1999

  35. Compensation

  36. Operation AnalysisRevenue Breakdown (2005)

  37. Company Analysis

  38. MTS Manitoba Leading telecom co. in Manitoba:Voice, Data, and Video

  39. Competitive Landscapein Manitoba

  40. MTS Manitoba • MTS Manitoba continues to dominate Manitoba market even though it had faced competition from Rogers, Telus, and Shaw. • How has MTS remained dominant?

  41. MTS ManitobaPreemption Strategy: MTS Bundles Objectives • Preempt cable triple play • Increase subscriber spending • Cross-selling Strategy • Full service: voice, data, and video • Attractive pricing (Bundle Pricing) • Competitive against cable

  42. Preemption Strategy

  43. Results • Steadily gaining market share in wireless, TV, and high-speed internet. • Increase its revenues and customer base by cross-selling Shaw Fight Back! • Introduced its bundle packages in July 2005

  44. MTS Manitoba Operation Performance Shaw launched bundle program

  45. MTS (Manitoba)

  46. History of Allstream • 1846 Montreal and Toronto Magnetic Telegraph Co. established • 1846~ 1992 merger & acquisition  Change name to Unitel • 1992 Enter Long distance market • 1996 Unitel  AT&T Canada Long Distance Services • 1999 Enter IT service; first to offer MPLS-IP VPNs in Canada • 1999 Enter local phone service; reached 100,000 local business lines • 2003 Allstream brand launched • 2004 MTS acquired Allstream • 2005 Acquire Delphi Solution Corp.

  47. Today’s Allstream Core Business • Provide specific or integrated e-Business solution to business clients Target market • midsized to large size enterprise business, as well as the public sector Market Segment (by industry) • Financial • Government • Manufacturing • Healthcare • High-Tech / Telecom • Energy

  48. ALLSTREAM (National) DivisionProduct Portfolio

  49. Allstream Client Base ….and many many more Canadian enterprises have chosen Allstream for e-business solution

More Related