A recent report of Total Telecom stated that IPTV is quickly
gaining strong foothold in the Canadian pay-TV market in lieu of
cable TV and satellite TV operations. According to the research
firm IHS, in the third quarter of 2012, IPTV subscription in
Canada was 9.6% of the total pay-TV subscriber base compared with
6.6% in the prior-year quarter. The two major companies, which
are aggressively expanding their respective IPTV networks, are -
) and Bell Canada, a subsidiary of
In the third quarter of 2012, Telus added approximately
637,000 TV subscribers (including IPTV and satellite) and
commands around 56% of Canadian IPTV market share. Bell Canada
added 43,000 IPTV subscribers in the said quarter and enjoys 18%
market share. Telus operates IPTV under "OPTIK TV" brand name,
whereas Bell Canada operates as "FIBE TV". IHS further estimated
that IPTV subscribers may expands to more than 18% of total
Canadian pay-TV subscribers by the end of 2017.
We believe the emergence of IPTV is a potential threat mainly
to two established cable operators of Canada, namely,
Rogers Communications Inc.
Shaw Communications Inc.
). In the third quarter of 2012, Rogers lost 16,000 cable TV
subscribers and Shaw lost 16,474 cable TV subscribers. The entry
of Telus and Bell Canada into the IPTV market has significantly
increased competition. In our view, this situation may likely
slash Rogers' and Shaw's market shares and caps their respective
Bell Canada is offering triple-play services with highly
attractive prices, which is quite popular particularly among the
low-end market segments. Furthermore, the company shares a
national wireless network with Telus.
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