1. © Analysys Mason Limited 2013 The developed Asia–Pacific telecoms market: trends and forecasts 2012–2017 Research Forecast Report North America telecoms market: interim forecast update 2013–2018 May 2013 Katrina Bond, Chris Nicoll, Will Hare, Alexandra Rehak

2. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 Contents 4.Executive summary 5.North America market summary: growth in handset data and broadband services will largely compensate for declining voice revenue in 2013– 2018 6.About this report: we have updated and extended our five-year forecasts for North America, reflecting the latest reported market data and trends 7.USA key forecast changes: upward revisions for smartphones and 4G, but a less-optimistic outlook for mobile broadband and FTTH 8.Canada key forecast changes: improved outlook for smartphones and handset data revenue; downward revisions for M2M and DSL 9.Regional overview 10.In North America, mobile networks will account for 68% of voice connections and 33% of broadband connections by 2018 11.Mobile devices will account for 75% of active broadband connections by 2018; 84% of handsets will be smartphones, and 28% will be prepaid 12.Fixed broadband access and IPTV services will account for 31% of North America’s fixed network retail revenue by 2018 13.The main trends in the North American telecoms market have altered little, but fixed voice revenue per connection is declining faster than expected 14.North America’s mobile handset data revenue is increasing more quickly than expected, reflecting strong smartphone adoption 15.LTE has had a strong start in North America, with around 37 million connections by the end of 2012; 81% of handsets will be 4G by 2018 2 16.Growth in mobile broadband connections in North America is slowing because of the success of tethering plans for smartphones 17.Country-level analysis 18.USA: summary of recent developments and country-specific factors that affect key forecast drivers 19.USA mobile market: smartphones are even more popular than previously forecast, and historical mobile prepaid connections have been revised 20.USA fixed market: DSL connections are starting to decline, and historical estimates of FTTH connections have been revised 21.Canada: summary of recent developments and country-specific factors that affect key forecast drivers 22.Canada mobile market: voice and handset data revenue was higher than expected in 2012, but M2M growth was below expectations 23.Canada fixed market: FTTH growth is strong, but the DSL market is weakening 24.About the authors and Analysys Mason 25.About the authors 26.About the authors 27.About Analysys Mason 28.Research from Analysys Mason 29.Consulting from Analysys Mason Slide no.

3. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 List of figures Figure 1:Retail revenue by service type in North America, 2009–2017 Figure 2:Growth rates of retail revenue by individual service types, North America, 2009–2018 Figure 3:Fixed and mobile voice connections, North America, 2009–2018 Figure 4:Broadband access connections by technology, North America, 2009–2018 Figure 5:Broadband connections by type, North America, 2009–2018 Figure 6:Smartphones as a percentage of mobile handsets, North America, 2009–2018 Figure 7:Prepaid and contract handset connections, North America, 2009– 2018 Figure 8:Fixed penetration by service type, North America, 2009–2018 Figure 9:Fixed retail revenue by service type, North America, 2009–2018 Figure 10:Fixed and mobile retail revenue, North America, 2009–2018 3 Figure 11:Fixed and mobile connections, North America, 2009–2018 Figure 12:Mobile handset data retail revenue, North America, 2009–2018 Figure 13:Smartphones as a percentage of total mobile handset connections, North America, 2009–2018 Figure 14:4G’s share of mobile handset connections, Canada and USA, 2009–2018 Figure 15:Mobile broadband population penetration, Canada and USA, 2009–2018 Figure 16:Mobile handset retail revenue by service, USA, 2009–2018 Figure 17:Prepaid and contract mobile connections, USA, 2009–2018 Figure 18: Cable, DSL and FTTH connections, USA, 2009–2018 Figure 19: Mobile voice and handset data revenue, Canada, 2009–2018 Figure 20: M2M connections, Canada, 2009–2018 Figure 21: DSL, cable and FTTH connections, Canada, 2009–2018

4. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 4 Executive summary Regional overview Country-level analysis About the authors and Analysys Mason

5. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 Figure 2: Growth rates of retail revenue by individual service types, North America, 2009–2018 [Source: Analysys Mason, 2013] North America market summary: growth in handset data and broadband services will largely compensate for declining voice revenue in 2013–2018 Service type Revenue (USD billion)CAGR 201220182009–20122012–2018 Mobile voice109.281.4–4.3%–5.7% Mobile messaging12.812.0–3.2%–1.3% Handset data56.4100.436.4%12.2% Mobile broadband 1 11.615.069.0%5.3% M2M0.93.243.6%27.7% Fixed voice 2 156.3122.1–6.1%–4.8% Fixed broadband 3 52.761.88.4%3.3% Other10.113.07.7%5.3% TOTAL411.6409.00.7%–0.1%  Handset data services offer the strongest opportunity for revenue growth in the next five years, but will not fully compensate for declining voice revenue once handset data ARPU becomes diluted by price competition and late adopters of smartphones.  We forecast that growth in revenue from other mobile broadband services, and fixed broadband services will slow to CAGRs of 5.3% and 3.3%, respectively. Figure 1: Retail revenue by service type in North America, 2009–2017 [Source: Analysys Mason, 2012] 5 1 Mobile broadband includes USB modem and mid-screen/large-screen mobile broadband, but not handset-based data. 2 Includes narrowband, dial-up Internet access. 3 Includes access and IPTV.

6. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 About this report: we have updated and extended our five-year forecasts for North America, reflecting the latest reported market data and trends  The purpose of this report is to:  provide an interim update of Analysys Mason’s telecoms forecasts for the USA and Canada, which were previously published in November 2012 1  extend the forecast horizon from 2017 to 2018  present and explain the main revisions, which are reflected in the associated Excel forecast data annex.  The report discusses the North American market overall, and then the key changes specific to the USA and Canada, and the drivers of these.  We monitor key drivers of our forecasts in individual countries. Upward or downward revisions to our previous forecasts occurred mainly for the following reasons.  Market developments. Some market drivers were stronger or weaker than previously anticipated.  Smartphone adoption exceeded our previous expectations for 2012 in both the USA and Canada.  Continued strong growth in smartphone take-up caused mobile revenue to shift from voice to handset data sources more quickly than we previously forecast. 6  Incorporation of reported operator and regulator data for the fourth quarter of 2012. We have updated our year-end 2012 figures to reflect the latest operator and regulator data. Where relevant, we have also revised our forecasts accordingly.  Changes to historical data because of newly available information and restated data, including from operators’ and regulators’ reports.  In the USA, we re-evaluated available data on FTTH connections and concluded that the number of active FTTH connections had been overstated by about 20% in recent years. These have been revised downwards.  We have also revised our estimates of the prepaid share of the North American mobile market, resulting in slightly higher historical values in some years.  For the USA, we expanded our historical data sources to ensure consistency in counting as prepaid those customers who pay monthly in advance without a contractual commitment.  For Canada, we incorporated operators’ restated figures where they changed from reporting registered to active subscribers. 1 Available at http://www.analysysmason.com/NA2012.

7. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 USA key forecast changes: upward revisions for smartphones and 4G, but a less-optimistic outlook for mobile broadband and FTTH 7  Smartphone growth is exceeding expectations, with positive implications for handset data revenue. We estimate that there were 154 million active smartphones in the USA at the end of 2012 (53% of all active handsets), compared with a previous forecast of 142 million. Handset data revenue in 2012 was approximately 5% higher than previously forecast.  We have obtained better data sources for FTTH connections in the USA, leading us to reduce our historical estimates by around 20% in recent years.  4G take-up was stronger than anticipated for the USA in 2012. We estimate that the USA had around 42 million active 4G connections at the end of 2012, including 30 million LTE smartphones.  The number of mobile broadband connections grew below expectations in 2012 – it reached 26 million by year end (previously forecast 32 million) – because of the popularity of large data packages and tethering through smartphones.  We have shifted upwards our forecast adoption profile for smartphones and now anticipate 84% of active mobile handsets in the USA will be smartphones by the end of 2018, compared with a previous forecast of 79%.  We now forecast mobile handset data revenue will account for 48% of total mobile retail revenue in 2018, up from a previously forecast 46%.  FTTH connections in the USA are now forecast to increase from 7.0 million at the end of 2012 to 9.9 million at the end of 2018, at a CAGR of 5.8%.  Our forecast adoption profile for 4G in the USA has been brought forward slightly, and we now expect 81% of mobile handsets, and 58% of all mobile connections, to be 4G by the end of 2018.  We have downgraded our outlook for mobile broadband to 52 million connections by end 2018 – a figure we previously expected to be reached by the end of 2015. This still represents a strong CAGR of 15% from 2012 to 2018.

8. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 Canada key forecast changes: improved outlook for smartphones and handset data revenue; downward revisions for M2M and DSL 8  Growth in DSL connections is slowing rapidly. The total number of DSL connections in Canada grew by just 1% in 2012, indicating that this market has plateaued at a slightly lower level than previously forecast.  Some operators now report active rather than registered mobile connections. Their restated figures have given us more information about activity rates and enabled us to improve our estimates of prepaid connections.  Smartphone penetration is increasing more quickly than anticipated, and this is having a positive impact on mobile handset data revenue.  Smartphones accounted for nearly 58% of Canada’s active handsets at the end of 2012, compared with a previously forecast 54%.  Handset data revenue for 2012 exceeded expectations by 4%.  M2M connections are increasing more slowly than previously forecast. We had expected Canada to reach 1 million M2M connections by the end of 2012, but we now do not expect that milestone to be reached until some point during 2013.  We expect the number of DSL connections in Canada to remain around 4.7 million for the next two years, but to decline to 4.4 million by the end of 2018.  We now estimate that 19% of Canada’s mobile handset connections were prepaid at the end of 2012. Previously we had forecast a handset prepaid rate of around 17%.  By the end of 2018, 21% of Canada’s handset base will be prepaid, which is consistent with previous forecasts.  We have accelerated our forecast adoption profile for smartphones and now anticipate smartphones will account for 84% of Canada’s active mobile handsets by the end of 2018 (previously forecast 77%).  Our near-term forecasts for mobile handset data revenue have also increased, but our five-year outlook remains largely unchanged, with the higher number of smartphones being offset by greater ARPU erosion.  Our five-year outlook for M2M is less optimistic than previously published, but still anticipates strong growth. We forecast the number of mobile M2M connections to reach 10.8 million by the end of 2018 – approximately one year later than previously forecast.

9. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 9 Executive summary Regional overview Country-level analysis About the authors and Analysys Mason

10. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 In North America, mobile networks will account for 68% of voice connections and 33% of broadband connections by 2018 10 Figure 3: Fixed and mobile voice connections, North America, 2009–2018 [Source: Analysys Mason, 2013] Figure 4: Broadband access connections by technology, North America, 2009–2018 [Source: Analysys Mason, 2013]

11. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 Mobile devices will account for 75% of active broadband connections by 2018; 84% of handsets will be smartphones, and 28% will be prepaid 11 Figure 6: Smartphones as a percentage of mobile handsets, North America, 2009–2018 [Source: Analysys Mason, 2013] Figure 5: Broadband connections by type, North America, 2009–2018 [Source: Analysys Mason, 2013] Figure 7: Prepaid and contract handset connections, North America, 2009– 2018 [Source: Analysys Mason, 2013]

12. © Analysys Mason Limited 2013 The developed Asia–Pacific telecoms market: trends and forecasts 2012–2017 Fixed broadband access and IPTV services will account for 31% of North America’s fixed network retail revenue by 2018 Figure 8: Fixed penetration by service type, North America, 2009–2018 [Source: Analysys Mason, 2013] 1 IPTV services are included in the Broadband category. Figure 9: Fixed retail revenue by service type, North America, 2009–2018 [Source: Analysys Mason, 2013] 1 12

13. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 The main trends in the North American telecoms market have altered little, but fixed voice revenue per connection is declining faster than expected 13 Figure 10: Fixed and mobile retail revenue, North America, 2009–2018 [Source: Analysys Mason, 2013] Figure 11: Fixed and mobile connections, North America, 2009–2018 [Source: Analysys Mason, 2013]

14. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 North America’s mobile handset data revenue is increasing more quickly than expected, reflecting strong smartphone adoption 14 Figure 12: Mobile handset data retail revenue, North America, 2009–2018 [Source: Analysys Mason, 2013] Figure 13: Smartphones as a percentage of total mobile handset connections, North America, 2009–2018 [Source: Analysys Mason, 2013]

15. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 LTE has had a strong start in North America, with around 37 million connections by the end of 2012; 81% of handsets will be 4G by 2018  In the USA, all major mobile network operators have now launched LTE. T-Mobile was last the major operator to do so, with its launch in March 2013. We expect widespread coverage by most nationwide operators by the end of 2013.  We estimate that 4G accounted for 42 million of the 335 million active mobile devices in the USA at the end of 2012. These 4G connections included:  around 30 million smartphones using LTE networks, out of a total of 154 million smartphones  an additional 5 million LTE-based mobile broadband connections  approximately 7.4 million mobile WiMAX connections. 1  In Canada, the three largest operators – Rogers Communications, Bell Canada and TELUS Communications – covered between 60% and 70% of Canada’s population with their respective LTE networks by the end of 2012. Rogers claimed to have close to 1 million LTE customers at that time.  We have altered our expected adoption profile for 4G, taking account of the initial strong take-up in the USA, and more detailed modelling of handset replacement rates. 15 Figure 14: 4G’s share of mobile handset connections, Canada and USA, 2009–2018 [Source: Analysys Mason, 2013] 1 Our definition of 4G includes LTE and mobile WiMAX but excludes HSPA.

16. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 Growth in mobile broadband connections in North America is slowing because of the success of tethering plans for smartphones  We estimate that there were 26 million mobile broadband connections in the USA at the end of 2012, including 3G and 4G data cards, personal Wi-Fi hotspots, e-readers and tablets with cellular connections.  Our estimate, which excludes cellular connections that are effected via smartphones, is considerably lower than the 32 million mobile broadband connections previously forecast for the USA for the end of 2012.  The success of plans that allow users to connect multiple devices to the Internet via smartphones contributed to the lower-than-expected number of mobile broadband users in the USA for 2012, and caused us to reduce our forecast number of mobile broadband connections for both the USA and Canada.  A large loss of wholesale customers on Clearwire’s 4G mobile WiMAX network also affected the number of mobile broadband connections in the USA at the end of 2012.  We are now forecasting a 2018 mobile broadband population penetration of 15.8% for the USA (previously 21.3%) and 14.7% for Canada (previously 16.2%). 16 Figure 15: Mobile broadband population penetration, Canada and USA, 2009–2018 [Source: Analysys Mason, 2013]

17. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 17 Executive summary Regional overview Country-level analysis About the authors and Analysys Mason

18. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 USA: summary of recent developments and country-specific factors that affect key forecast drivers  Mergers and acquisitions are strengthening third- and fourth-ranked mobile operators: Sprint is still deciding on offers by DISH Network and Softbank Mobile. If Sprint is purchased by either DISH Network or Softbank, then it could in turn acquire its mobile WiMAX partner, Clearwire. Clearwire shareholders are set to vote on the prospect in May 2013. The Clearwire 2.5GHz spectrum could be used to launch a TD-LTE super high-speed (>150Mbps) network, which could change the complexion of the US mobile market. Meanwhile, T-Mobile was strengthened by its merger with MetroPCS, which was finalised at the end of April 2013 and lends further support to our belief that T-Mobile will become increasingly aggressive with is products and services in the mobile data market. The deal gives Deutsche Telekom a 74% shareholding in the merged company (T-Mobile US), but does not immediately change T-Mobile’s ranking as the fourth-largest mobile operator in the USA.  Increased emphasis on prepaid: Prepaid handset services are continuing to gain popularity, and prepaid customers are adopting smartphones. Nearly every operator offers prepaid services, some with financing options for prepaid smartphones, and smartphones are being offered at lower price points. It is becoming more difficult for operators to increase their contract customer base; the two largest operators, AT&T and Verizon, had net growth in contract customers during 2012, but Sprint lost contract customers during 2012 and the first quarter of 2013. T-Mobile has also lost contract customers, but T-Mobile recorded its first net quarterly gain in contract customers since the first quarter of 2009 in the first quarter of 2013.  Multi-device plans with large data allowances: Multi-device plans with large data allowances are becoming more readily available. AT&T and Verizon offer tiered, multi-device data plans, with Verizon reporting 2.64 devices per account and AT&T three devices per account.  Widespread LTE availability expected this year: LTE is offered by AT&T (54% population coverage at end of 2012 with plans for 79% coverage by the end 2013), Verizon (89% population coverage at the end of 2012), Sprint (coverage of 58 cities at the end of 2012), Leap Wireless (22% population coverage) and U.S. Cellular (coverage planned to reach 87% of customers in 2013). T- Mobile US plans to launch LTE services in 2013, and its acquisition of MetroPCS gives it additional spectrum for LTE expansion.  We continue to expect improved voice quality on mobile networks, encouraging further fixed–mobile substitution, but Verizon has delayed its VoLTE launch until 2014. Sprint will begin rolling out HD voice over LTE during the second quarter of 2013. MetroPCS launched VoLTE in 2012, and will be supported by the merged T-Mobile US. 18

19. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 USA mobile market: smartphones are even more popular than previously forecast, and historical mobile prepaid connections have been revised  Smartphone penetration increased even more quickly than anticipated in 2012. Operators are offering financing options to make smartphones more affordable for prepaid customers, and are offering smartphones at lower price points. It is no longer the norm for smartphones to have periods of network exclusivity – for example, the Samsung Galaxy S4 was launched on seven US networks in April 2013.  The strong growth in smartphone take-up is having positive knock-on effects for handset data revenue, which increased by 23% in 2012, compared with previous forecast growth of 15% for that year. We estimate that handset data revenue accounted for 30% of mobile retail revenue in 2012, and this will increase to 48% in 2018.  We have improved our historical data on prepaid connections by collecting more data from a larger number of operators. The operators we now track in detail account for about 97% of US mobile connections. This has enabled us to ensure greater consistency in the inclusion as prepaid those devices associated with monthly tariffs that are paid in advance without a fixed-term contractual obligation. Clearwire, Leap Wireless and MetroPCS (now part of T- Mobile US) offer these types of tariffs. 19 Figure 16: Mobile handset retail revenue by service, USA, 2009–2018 [Source: Analysys Mason, 2013] Figure 17: Prepaid and contract mobile connections, USA, 2009–2018 [Source: Analysys Mason, 2013]

20. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 USA fixed market: DSL connections are starting to decline, and historical estimates of FTTH connections have been revised  DSL connections are starting to decline, which is earlier than the previously forecast decline that we expected to occur from 2015.  DSL was previously forecast to peak at 32.5 million connections in 2014, but we now expect it to decline from its 2012 level of just under 32 million connections to 29 million connections by the end of 2018.  We have obtained better data sources for FTTH connections in the USA, leading us to reduce our estimate by around 20% in recent years. We believe that the largest player in this market, Verizon, had around three quarters of the active FTTH connections in the USA at the end of 2012.  Cable broadband will continue to benefit from the popularity of cable TV.  Fixed voice revenue declined slightly more than expected in 2012, generating USD145 billion in retail revenue compared with a forecast of USD148 billion. We continue to forecast the ongoing erosion of fixed voice revenue, declining to USD114 billion in 2018 – a CAGR of –4.1% between 2012 and 2018. 20 Figure 18: Cable, DSL and FTTH connections, USA, 2009–2018 [Source: Analysys Mason, 2013]

21. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 Canada: summary of recent developments and country-specific factors that affect key forecast drivers  FTTH roll-out: Roll-out of FTTH in Canada is continuing at a strong pace. Bell Canada now expects its FTTH network to pass 4.3 million of its 7 million customers by the end of 2013, and Bell Aliant expects its FTTH network to pass 800 000 premises by the end of the year. SaskTel has committed to investing CAD23.5 million (USD23.5 million) between 2013 and 2018 to provide fibre connectivity for businesses, and is focusing on upgrading DSL customers in downtown Saskatoon and Moose Jaw to FTTH during 2013. MTS continues to roll out FTTH in Manitoba, but TELUS Communications is still focusing on its DSL network and has not committed to rolling out FTTH.  New entrants are increasing their share of the prepaid mobile market: New entrants In Canada’s mobile market are continuing to increase their market share and have been particularly successful in taking prepaid customers from the more established operators. During 2012, Canada’s main established operators (Rogers Communications, Bell Wireless, Bell Aliant, TELUS, MTS and SaskTel) collectively lost around 420 000 active prepaid customers, with most of these being acquired by the four new entrants that have entered the market since 2009.  LTE spectrum auction delay: The Canadian regulator was planning an auction of LTE spectrum in the 700MHz band for the first half of 2013, but that has been delayed until November 2013. An auction of spectrum in the 2500MHz is still planned for early 2014.  The M2M market growing more slowly than anticipated: The largest provider of mobile M2M services in Canada, Rogers Communications, had around 800 000 M2M connections as of mid-2012, but now does not expect to reach 1 million M2M connections until the end of 2013, which is later than we previously expected. 21

22. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 Canada mobile market: voice and handset data revenue was higher than expected in 2012, but M2M growth was below expectations  Mobile voice revenue is proving more robust than expected, but we still believe it will follow a downward trend during the next five years.  Mobile handset data revenue has responded positively to the faster-than-expected adoption of smartphones and 4G in 2012. This has improved our outlook for these indicators for the short-term. We now forecast smartphones will account for 84% of Canada’s active handsets by the end of 2018.  Mobile M2M connections are increasing less quickly than anticipated. Rogers Communications, which has the largest share of this market in Canada, now anticipates around 1 million connections by the end of 2013, up from 800 000 as of mid-2012. This is a slower growth rate than we had previously assumed.  Some operators now report active rather than registered mobile connections. Operators’ restated figures have given us more information about activity rates and enabled us to improve our estimates of prepaid connections. We now estimate that 19% of Canada’s mobile handset connections were prepaid at the end of 2012. 22 Figure 19: Mobile voice and handset data revenue, Canada, 2009–2018 [Source: Analysys Mason, 2013] Figure 20: M2M connections, Canada, 2009–2018 [Source: Analysys Mason, 2013]

23. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 Canada fixed market: FTTH growth is strong, but the DSL market is weakening  The roll-out of FTTH is continuing strongly.  Bell Canada has been expanding the footprint of its ‘Fibe’ Internet service in Montreal and Toronto and expects Fibe TV to be available to more than half of its 7 million customers by the end of 2013.  Bell Aliant expects its FTTH network to pass 800 000 premises by the end of 2013.  MTS and SaskTel announced FTTH expansion plans for 2013, but TELUS continues to focus on its DSL network.  We estimate that there were 278 000 active FTTH connections in Canada at the end of 2012, compared with a previous forecast of 228 000. We have therefore brought forward some of the net additions to FTTH connections previously anticipated later in the forecast horizon. However, we continue to expect the cost of roll-out in this relatively sparsely populated country to limit FTTH connections to just under 1 million within our five-year forecast period.  Growth in DSL connections is slowing rapidly; the total number of DSL connections in Canada increased by just 1% in 2012, indicating that this market has plateaued at a slightly lower level than previously forecast. Bell Aliant’s DSL subscriber base has already started to decline; the company had a net loss of 41 800 DSL customers in 2012, but a net gain of 64 700 FTTH customers. Figure 21: DSL, cable and FTTH connections, Canada, 2009–2018 [Source: Analysys Mason, 2013] 23

24. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 24 Executive summary Regional overview Country-level analysis About the authors and Analysys Mason

25. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 About the authors Katrina Bond (Analysys Mason Associate) is a freelance analyst with more than a decade of experience in understanding, analysing and forecasting the telecoms industry. She has a global perspective having been based in Australia, the UK and now in the USA, and has maintained a special interest in the Asia–Pacific region. Katrina previously managed Analysys Mason’s mobile research programme as a Principal Analyst in the company’s Telecoms Research division. She has written extensively on fixed–mobile substitution, mobile data and content services, mobile data solutions for businesses, mobile payments, and billing, pricing and roaming issues related to mobile data services. Chris Nicoll (Principal Analyst) is the lead analyst for Analysys Mason’s Wireless Networks research programme. His primary areas of specialisation include wireless access technologies, wireless traffic forecasting, mobile infrastructure and operator strategy. Chris has more than 20 years of expertise as a leader in defining telecoms strategy. Prior to joining Analysys Mason, Chris held Principal Analyst positions at ACG Research and Nicoll Consulting, where he developed marketing strategy and positioning for leading telecoms operators. At Yankee Group, Chris was a member of the Yankee Group Research Council and provided thought leadership to the research organisation. At Lucent and Alcatel-Lucent, Chris was director of strategic marketing, overseeing the company's corporate positioning and messaging, including public affairs and analyst relations. Chris also led the Telecom Infrastructure team at Current Analysis. 25

26. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 About the authors William Hare (Analyst) is co-leader of Analysys Mason’s Global Telecoms Forecasts programme, and is a key contributor to the modelling behind the Telecoms Market Matrix. He joined Analysys Mason’s Consulting division in 2007, before transferring to the Research division in 2010. William’s primary specialisations include business and market modelling and data analysis, for both the mobile and fixed telecoms markets. He read mathematics at the University of Cambridge. Alexandra Rehak (Partner) is Head of Analysys Mason’s Telecoms Research division. Alexandra is responsible for setting the direction for our global telecoms research, working with our expert analysts and consultants to build new content programmes and develop areas of thought leadership across our Consumer, Networks, Enterprise and Data/Regional practices. Alexandra previously served as Research Director of Analysys Mason’s Custom Research group, where she developed and directed client-specific projects on market, competitive and regulatory issues for a variety of clients including service providers, vendors and regulators. Alexandra’s primary areas of specialisation include media and entertainment, mobile telecoms services for both consumer and enterprise markets, best practice and competitive strategy, and benchmarking. She also established Analysys Mason’s Consumer Content and Applications research programme. Before joining Analysys Mason, Alexandra was Director of Advisory Services at the international telecoms research firm TeleGeography. Her other previous experience includes management roles in Motorola’s Business Research and Strategy group in Asia, in the telecoms/media/technology division of PA Consulting Group, and as Director, Asia–Pacific region for Pyramid Research. 26

27. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 About Analysys Mason Knowing what’s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialist knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research. 27 Consulting  Our focus is exclusively on TMT.  We support multi-billion dollar investments, advise clients on regulatory matters, provide spectrum valuation and auction support, and advise on operational performance, business planning and strategy.  We have developed rigorous methodologies that deliver tangible results for clients around the world. For more information, please visit www.analysysmason.com/consulting. Research  We analyse, track and forecast the different services accessed by consumers and enterprises, as well as the software, infrastructure and technology delivering those services.  Research clients benefit from regular and timely intelligence in addition to direct access to our team of expert analysts.  Our dedicated Custom Research team undertakes specialised and bespoke projects for clients. For more information, please visit www.analysysmason.com/research.

28. © Analysys Mason Limited 2013 North America telecoms market: interim forecast update 2013–2018 Research from Analysys Mason 28 We provide dedicated coverage of developments in the telecoms, media and technology (TMT) sectors, through a range of research programmes that focus on different services and regions of the world. Alongside our standardised suite of research programmes, our Custom Research team undertakes specialised, bespoke research projects for clients. The dedicated team offers tailored investigations and answers complex questions on markets, competitors and services with customised industry intelligence and insights. To find out more, please visit www.analysysmason.com/research. Network Technologies SpectrumFixed NetworksWireless Networks Practices Programmes Consumer Services Fixed Broadband and Media Mobile Broadband and Devices Mobile Content and Applications Voice and Messaging Enterprise Services EnterpriseSME Strategies Telecoms Software Strategies Data programmes Application programmes Telecoms Software Forecasts Service Assurance Telecoms Software Market Shares Revenue Management Infrastructure Solutions Service Fulfilment Service Delivery Platforms Customer Care Customer Experience Management Software Strategies Digital Economy Software Strategies Analytics Software Strategies Software-Controlled Networking MEAAPAC Regional Markets Europe European Core Forecasts Telecoms Market Matrix European Country Reports The Middle East and Africa Asia–Pacific Global Telecoms Forecasts Telecoms Software Markets

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