CANADIAN TELECOM MARKET TOTALED $25.5 BILLION IN 1994 AND WILL REACH $35.4 BILLION BY 1998,...

New York, N.Y.--(BUSINESS WIRE)--June 8, 1995--"New research from Northern Business Information focusing on the Canadian telecom market shows that the market for telecom services and equipment totaled $25.2 billion dollars in 1994, making it the largest industry in Canada," commented Phillip Armstrong,

Northern Business Information's senior analyst for the report. "The market will grow by a 9 percent compound annual growth rate to reach $35.4 billion in 1998." The strongest growth in the sector in the coming years will be in the cellular, PCS, paging, broadband, and reseller service markets. On the equipment side, the strongest growth will be for transmission, network management, and broadband switching equipment.

Other selected findings include the following:

- Competition has been driving the development of several telecommunications industry sectors. The long-distance market is the most visible and the most volatile as telephone companies, alternative carriers, and resellers engage in aggressive marketing and price-cutting strategies to capture and retain market share. A continued market shake-out is inevitable for this $8 billion market segment.

- The subsidy of local services by long-distance revenues will probably disappear over the next two years as a result of the CRTC's decision to allow local service competition. A competitive local service market and the ongoing pressure by telephone companies and resellers will combine to convince the CRTC to allow local service rates to be subject to market forces.

- PCS will immediately appeal to potential users because it will offer voice, data, fax and other services immediately, no matter the location. The development of this local wireless network will require substantial investments in network infrastructure development, marketing, and interconnection charges. Because of these substantial investments required, Mobility Canada will invest $1 billion alone; it will take several years before any of the PCS operations become profitable.

- The rollout of ATM across the country will begin in two years. The growing demand for high-bandwidth services will generate significant opportunities for ATM switching and access equipment vendors. The ATM switching market should increase by 50% annually, totaling close to $250 million by 1998.

This is just some of the information featured in Northern Business Information's latest 161-page Canadian Telecommunications Market, 1995. This report, which takes an in-depth look at the entire Canadian telecommunications market, will help in determining the best investment opportunities as well as the most attractive service and equipment markets to enter in the coming years. Canadian Telecommunications Market, 1995 can be purchased by contacting Northern Business Information at 1-800-328-2776.

Northern Business Information, a division of The McGraw-Hill Companies, tracks the worldwide telecommunications industry. With an international staff of researchers and analysts, Northern Business Information provides focused and timely research services to telecommunications vendors and service providers around the world. Northern Business Information's consistent methodology and extensive use of primary research and sophisticated models ensure unparalleled accuracy and reliability.

CONTACT: Phillip Armstrong

Senior Analyst

Northern Business Information

The McGraw-Hill Companies

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New York, NY 10020

Telephone: 212/512-2899

Fax: 212/512-2859

armstrpn@mcgraw-hill.com