A Strong Canada Depends on Strong Wireless Networks

Bernard Lord

President & CEO Canadian Wireless Telecommunications Association

The Data Effect April 17, 2013

In 2010, the Wireless Industry added approximately $43 billion to the Canadian economy.

With $18 billion to GDP directly, through the sale of goods and services.

Roughly $16 billion in economic benefits for the suppliers involved in the production chain.

And over $9 billion in consumer surplus.

$-

$5,000

$10,000

$15,000

$20,000

$25,000

Mill

ions

Comparison of Contribution to GDP 2010

In 2010, more than 261,000 people in Canada had jobs - directly or indirectly - in the wireless industry, where the average wage and value-added per employee were higher than the corresponding Canadian average.

The Benefits of Wireless in Canada

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Mill

ions

Capital Expenditure

$2.5 billion CAPEX in 2010 ($101.17 /subscriber).

The private sector

has invested $11.6 billion in spectrum and wireless infrastructure from 2008 to 2011 and $23.7 billion over the past decade.

Red = Cost of spectrum auction

Investment in Wireless in Canada

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000Projected Growth

to 30 Million

Subscriber Growth

Source: Research and Markets 2Q10 Canadian Mobile Operator Forecast 2009-2014

48%

69%

52%

24%

Smartphone Usage – First Quarter 2012

33%

48%

36%

17%

Overall

18-34

35-54

55+

Smartphone ownership

2011 Results 2012 Results

84%

79%

73%

64%

53%

34%

24%

Apps linking you to weather information

Apps that link you to social networks, Instant Messaging (Facebook, Twitter,LinkedIn, etc.)

Apps that link you to travel, public transit, mapping or navigation information

An app for YouTube

Apps that link you to regional, national or international news

Health, fitness or wellness

Apps related to cooking or gardening

Most Common Types of Apps Used on Smartphones

Mobile Phone Banking and Payment Apps

28%

22%

38%

26%

18%

47%

Smartphone '12

Smartphone '11

18-34

35-54

55+

Cell phone only

Smartphone owners living in cell phone only households are more likely to do some of their banking or pay for products and services from their phone.

% who use banking and payment apps

Competitiveness

8

Canadians have many choices for wireless services with more than two dozen wireless service providers, including national carriers, strong regional players and high profile resellers.

Canada has one of the least concentrated markets in the OECD Canada is one of only six OECD countries with more than four

wireless service providers; 13 OECD countries have only three wireless service providers,

and 21 countries have only four wireless service providers;

On average, the top two service providers in OECD countries control 71.9% of subscribers. Canada’s top two serve only 62.4%

Source: 2012 Subscriber data; sourced from Bank of America Merrill Lynch Global Wireless Matrix

9 Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, February 2013

• Two-thirds of the world’s mobile data traffic will be video by 2017. Mobile video will increase 16-fold between 2012 and 2017, accounting for over 66 percent of total mobile data traffic by the end of the forecast period.

• Mobile-connected tablets will generate more traffic in 2017 than the entire global mobile network in 2012.

Wireless Traffic Growth

Wirelessly Connected Devices

10

50 Billion in 2020

5 Billion in 2010

Source : Ericsson

0

2

4

6

8

10

12

2012 2013 2014 2015 2016 2017

66% CAGR 2012-2017

11 Source: Cisco VNI Mobile, 2013

Wireless Traffic Growth

Privacy

12

Data traffic will help fuel economic growth in all sectors, but the concept of more data being transferred – including personal, private and secure information – is scary to some.

Canadians’ privacy rights are well protected through PIPEDA.

Our principles-based approach to privacy protection recognizes the right of consumers to be in control of their personal information, holds businesses accountable, but does not constrain legitimate business activities.

We need to maintain a privacy approach that protects consumers without unnecessarily stifling growth and innovation.

Key Priorities

13

More spectrum

More sites

Lower fees

Smarter regulations

A Strong Canada Depends on Strong Wireless Networks