TECH SUPPLIER Apr 2019 - Market Perspective - Doc # CA43809219

Canadian Communications Service Provider Capex Spending, 2018–2019

By: Lawrence SurteesResearch Vice President, Communications

Abstract

This IDC Market Perspective updates IDC Canada's previous analysis of Canadian telecommunications service providers' 2018 capital expenditure forecasts. Communications providers are facing a transition to become service providers of the future to face the twin challenges of market erosion by new entrants and cable players in each other's core markets coupled with stalled penetration in wireless. These forces will sustain capex spending at almost C$12 billion in 2019, according to IDC Canada's annual communications capital expenditure study.

"The move to software-based virtualized networks has become a competitive necessity and an imperative for the next-generation of 5G wireless networks," says study author Lawrence Surtees, vice president and principal analyst in the Communications Practice at IDC Canada Ltd. "These investments in next-generation network technologies will provide many compelling benefits to providers who make them."


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