In 2011, 2 Million Canadians Will Have Chosen To Ditch Their Land-Lines

Posted by Stephen Christensen on 2011-09-21 7:41:00 AM

google imagesAccording to a new report by The Convergence Consulting Group, by the end of 2011, one in seven households will have abandoned their land-line in favour of a mobile phone.  The report, assessing the state of wireless technology in Canada from 2009-2014, found that ~2 million Canadians will rely solely on cellular technology by the end of this year, due to increased flexibility and monetary savings.

Brahm Eiley, co-founder of Convergence, was quoted by the CBC, “This is happening because prices have come down so radically.  So in effect, it's cheaper to have a wireless phone than it is to have a wireline phone.”  

According to Eiley, it is not due solely to cheaper voice plan rates my the major telcoms.  “New players like Wind Mobile, Mobilicity and Public Mobile, which have all entered the market over the last two years, have also added "all-you-can-eat" voice plans.  We're actually seeing an acceleration of wireless substitution in 2011, which we did not see previously in Canada.”

The Convergence report projects an increase to 26% of households being cellular only by the end of 2014, up from 8.9% in 2009.  The results however, conflict with the 2010 annual communications monitoring report by the CRTC, where it was found the average mobile phone bill dropped by only $1 from 2009 to 2010.  The CRTC report however, does not include 2011 data, nor does it touch on whether or not the price could be reflective of decreasing voice plans buoyed by increasing data plan subscriptions.

The Canadian Radio-television and Telecommunications Commission (CRTC) is an independent public organization that regulates and supervises the Canadian broadcasting and telecommunications systems. The CRTC does not regulate newspapers, magazines, cell phone rates, the quality of service and business practices of cell phone companies, or the quality and content of TV and radio programs. As an independent... more

Company:
The Convergence Consulting Group
Website:
http://www.convergenceonline.com
Location:
Toronto, Ontario, Canada

Convergence was formed in 1996 by ex-McKinsey/Monitor and Industry people to provide strategy consulting in the Internet, Content, Telecom and Technology space. We have subsequently worked at a senior level for cable, satellite and telcos, online and traditional content companies, equipment, consumer electronics and software companies, utilities, advertising agencies, institutional investors, start-ups, industry... more


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Stephen Christensen

Stephen Christensen

Stephen is the Atlantic Canadian contributor for Techvibes.com; reporting Canadian technology news, with a focus on the Maritime provinces.  Having a deep-rooted interest in science and technology for much of his life, he is most interested in mobile technology and social media.  Having been published in various scientific journals, he is completing his Graduate Studies at Dalhousie University... more



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