Report: Canadian Telecom industry profits to reach $7.5 billion in 2010

According to the latest report by the Conference Board of Canada the “past year was a milestone for the telecom industry”. No doubt. New wireless entrants Wind Mobile, Public Mobile, Mobilicity all launched their services. Videotron and SaskTel turned on their 3G+ networks and all the incumbent players significantly responded by changing cancellation fee structures and all sorts of adjusted price plans.

The Conference Board estimates the telecom industry will see profits rise by 11.6% to $7.5 billion in 2010 but will “stagnate starting next year as increased competition limits the ability of providers – notably in wireless services”.

Economist Maxim Armstrong said “The sluggish economic recovery made it harder for telecom providers to attract new clients or convince existing customers to expand their service. However, lower costs and continued demand for new products, such as digital TV and smartphones, helped to keep the telecom industry growing when most other industries were in recession.”

What do you think 2011 will look like for wireless? Will we see the start of a consolidation of carriers?

Source: Conference Board of Canada
Via: The Globe

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