Wireless Association Predicts Massive Growth in Canada’s Mobile Data Market

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Wireless Association Predicts Massive Growth in Canada’s Mobile Data Market

6:30 am on November 1, 2007 | Category: Business, Web Services, Telecom Services, Wireless

Canadian mobile data services will explode in popularity over the next three years, and become a multi-billion-dollar segment of the country’s wireless communications industry, according to a recent report by the Canadian Wireless Telecommunications Association.

Text messaging, video calling, music downloads, and wireless email already account for about 10% of the average Canadian cell phone bill, or a combined total of $1 billion per year, and should grow to about 30%, or over $3 billion per year, in 2010.

Canada’s major cell phone carriers, including Rogers Wireless, Bell Mobility, and Telus Mobility are really beginning to embrace mobile data service, and have a good idea of their future potential, according to BMO Capital Markets analyst, Peter Rhamey.

“First and foremost, it’s a new business for them. It’s an additive to whatever they’re getting in the voice business they’re getting today,” Rhamey commented. “Secondly, voice average revenue per user is expected to decline.”

“If you can sell users a compelling data plan, that might be an existing $20 to $30 extra you get from them a month.”