Canadian Wireless Industry : An Exciting Potential Investment Opportunity

Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone

The telecommunications regulation that existed in Canada in the 1970s and before were high. The telecommunication industry in Canada was mainly dominated by Bell Canada. Regional service providers and long distance resellers emerged in the telecommunication industry in the 1980s and the 1900s due to deregulation by the federal government. During the late 1990s the wireless market exhibited a growth in momentum. In the 2000s it witnessed a rapid growth but this was not the case in Canada. The government is determined to ensure Canada’s telecommunication market is opened up and it even modified CRTC decision. CRCT had argued Globalive

This report is meant to advise Mr. Van Hanebanker and his partners on my recommendation in regards to investing in Wind Mobile. A decision must be made regarding this investment before the spectrum auction in April. This spectrum auction is crucial to Wind Mobile growing in the wireless industry in Canada. The wireless industry in Canada presents a unique opportunity for investment due to the oligopolistic structure and market breakdown. Currently, there are three major players in the industry and there is extensive room for growth and development as an industry and for Wind Mobile itself to gain significant market share. Some of the factors I will consider over the course of this analysis and recommendation include: the wireless communication industry in Canada, growth and competition in the industry and growth of Wind Mobile, and Canada’s current economic state. Within these brackets, assessments of the average revenue per user, the growth in subscribers and other indicators of Wind’s performance will be analyzed. They will be compared to industry standards and may demonstrate how Wind compares with the “Big 3” firms, who benefit from aspects such as economies of scale. I believe my assessment will give Mr. Van Hanebanker a good overall idea of the pros and cons, and considerations he and his colleagues need to consider when making their final decision.

Canada is on the edge of a substantial change that will change the way companies

Bell promises consumers and businesses with the most up-to-date and innovative communications technology available in today’s Canadian market.4 Bell’s total revenue, capital intensity and EBITDA growth are all expected to grow a considerable percent by 2015.5 Bell’s objective is to be nationally recognized as Canada’s leading communications company, which is driven by the professionals working for them, alongside the millions of dedicated consumers.

- The smartphone industry is very capital intensive due to high research and development (R&D) costs and expensive manufacturing facilities. This raises the barrier of entry and makes it difficult for small companies to enter. Many of the firms that compete in this industry have existing long-term contractual relationships with mobile carriers and benefit from their significant brand equity. These companies also have a great deal of knowledge and experience through economies of learning, which gives them a major cost advantage over smaller entrants. New entrants will have difficulty getting carriers to adopt their phones because many carriers are already in profitable deals with the large mobile phone manufacturers.

Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy.

The Canadian cellular service’s industry is comprised of approximately 15 cellular providers. These operators employ approximately 16,000 individuals and generate more than CAN$10B in revenues annually, which represents almost 30 percent of the Canadian telecommunications market. The Canadian wireless industry has been experiencing an annual growth rate three times that of any other Canadian telecommunications sector. This is very significant as Canada is in the top 10% in the world for broadband penetration.

1. Describe the cost behavior in the wireless industry. What are the implications of this cost behavior for cost-volume-profit (CVP) relationships?

Wireless telecom networks represent long-term growth opportunities. These opportunities are coming as major data and telecommunication carriers and providers are trying to upgrade their networks to cope with the expected explosion in data demand. Cisco has tried to exploit these opportunities by making various acquisitions such as Intucell, BroadHop, Cognitive Security etc. Cisco is also pursuing Cloud Based initiatives which are big and effective investment from the future perspective and will turn out to be a good investment for the company from future profitability and cash flow perspective.

The telecommunications industry has steadily rebound since 2009; this is because of the growth of not only the mobile and broadband structures, but also the increase of the video market. In Figure 1, the projected outcome is indicates a steady increase in the new 4G mobile broadband networks which will fuel continued wireless growth. “Business customers in particular will continue to use this technology to expand their capabilities beyond the desktop computer. Emerging markets such as China, India and Latin America are expected to see strong growth,” (Verizon, 2011).

This is a great move for sustainable reporting in the social department. The more countries AT&T services, the greater the likelihood for membership, as well as connecting businesses and communities more effectively. To continue with this North American mobile service advancement, AT&T will need to look into Canadian mobile providers they can buy, or build towers and lines in Canada. This would involve a 50% or more increase in financing towards building or buying towers and lines. This should be looked at over the next 10 to 15 years to determine the best time to make this

With all the references, Rogers Communication Inc. is serving Canada for over fifty years with its broadband and media communications. In regards to the recent financial statistics, rogers net profit has been decreasing since past three years. Even Though, Rogers has been affected by inflation in operating expenses, it can be concluded that Rogers will stay in this Canadian tele-market with its frequent launch of new products and

Rogers Cable is the leader in Canada’s cable television market, with a over 2.3 million cable television subscribers and 500000 internet subscribers. In 1993 the Canadian government relaxed the norms of telecommunications industry followed by an application in 1999, allowing local carriers to change the content of the information passing through their networks. This led to increased competition in the market and the customers enjoyed a lot of choice. As such Rogers Cable focused completely on increasing its subscriber base and

Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from