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Statistically Mobility: Managing our Telecom Expenses

Posted by Chris Thierry | November 30, 2010 12:25 PM

Mobility Industry is Growing Fast Expense Management

The wireless industry is one of the fastest growing, most wide-spread North American industries of our time.

Canadian Wireless Facts

  • Canada has 34,301,200 people. (Statistics Canada Population Clock)
  • There are 23,417,117 active wireless phones (Canadian Wireless Telecommunications Association, June 2010)
  • In 2014 there will be 31 million mobile phone subscriptions across Canada (IE Market Research)

Mobile Convenience or Telecom Expense

What it means? Almost 90% of the population will have a wireless phone by 2014. 

This exponential increase has as much to do with coverage that extends to 99% of the population as our addiction to the mobile convenience.  While there has been much noise made about the new wireless entrants there are in fact 57 licensed operators in Canada [Ovum]. Of course the big 3 make up the vast majority of the market. 

The Canadian economy is impacted greatly by the wireless industry, as it generates an estimated 39 billion dollars a year (taking into consideration the revenue of mobile network operators, the wireless communications services industry and consumer surplus) and this number is expected to rise, alongside the number of users. [Ovum]

The total end user spend on wireless services and devices is near 16.3 million dollars a year and average household spending on mobile devices and other wireless services is at $550/year, a 6.1% increase since 2007. Average household spending on conventional landline telephone service is at $580/year, dropping 5.1%. [Stats Canada]

The downward trend of wireline is causing Bell Canada on January 1, 2011 to fight back on the consumer front, increasing monthly mobile feature cost by $2 or more. As corporate rates are typically locked into contracts, companies won’t immediately feel the rise in expense until contract renewal time.

While going fully wireless has been the vision of the mobility industry since the 80s, we are seeing that companies are reluctant to pull the cord, and are simply adding mobility phones to the existing telecom infrastructure they already have.  

As the wireless industry continues to grow, we can expect new technology and new issues will present themselves for discussion. Will wireless communication overpower landlines in 2014? Will landlines become obsolete? The consumer signs are pointing to yes, but how quickly with companies follow the trend? 

For more information, consult the following studies:

Ovum: The Benefit of the Wireless Telecommunications Industry to the Canadian Economy - April 21, 2010

Stats Canada: Spending Patterns in Canada – 2008

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Topics: Telecom Expense Management, Wireless management, Mobile Devices, tem

Written by Chris Thierry

Christopher is the president, founder, visionary, and driving force behind Cimpl, which first started in 2000 as Etelesolv: his goal is to bring holistic enterprise solutions to companies of all shapes and sizes. Moreover, Christopher’s devotion to the well-being of his employees has made Cimpl one of Canada’s Top 50 Employers. He’s also dedicated to giving back to his community, by serving in multiple industry associations. He’s a mentor for the Canadian Youth Business Foundation and a member of the Young Presidents' Organization, the Entrepreneurs’ Organization, the CIO Association of Canada, and the Telecom Expense Management Industry Association. Christopher holds a Bachelor’s degree in Management Information Systems and Marketing from the John Molson School of Business at Concordia University. He is also a graduate of the Massachusetts Institute of Technology's (MIT) Entrepreneur’s Master’s Program – a program specifically designed to optimize the skillsets of founders of high growth companies.

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