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Canadian wireless use to more than double in four years

TORONTO-The number of Canadians using mobile phones is expected to more than double during the next four years, with the biggest growth spurt in the teenage and corporate applications markets, according to a new IDC Canada report.

IDC forecasted that wireless penetration in Canada will jump to 70.2 percent, or 22.6 million users, by 2006 compared with 34.4 percent, or 10.7 million users, in 2001. IDC also expects the size of the wireless market to increase 42 percent to C$9.3 billion (US$6 billion) from C$6.1 billion (US$4 billion).

A big market for Canada’s four major wireless carriers-Rogers AT&T, Microcell, Telus Mobility and Bell Mobility-is the 13- to 19-year-old segment, which constitutes 20 percent of the current market, but is growing at twice the overall rate.

The wireless data market is just starting to take off with the introduction of 2.5-generation (2.5G) networks in Canada. But many businesses are waiting for the improved third-generation (3G) networks that are expected to be launched in 2005. As a result, IDC expects the wireless data market will account for only 4 percent, or C$386 million (US$250 million), of the total wireless market by 2006.

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