# Speedtest® Market Report

### Canada

#### Published August 24, 2016

The Canadian telecommunications market has seen little seismic change over the last six months in terms of new or different operators. The country’s mobile and broadband markets are dominated by the same major providers that are looking to tighten their grip. These telecom giants are attempting to gain more of the market share by expanding newer technologies, such as Gigabit services and Voice over LTE. The year-over-year average download speed for fixed broadband in Canada has increased by 40% to 44.05 Mbps in June 2016. Upload speed has seen a similar lift of 33% to 11.04 Mbps. On the mobile side, average download speed has improved 21% to 25.21 Mbps and upload speed increased 18% to 8.62 Mbps. These speeds put Canada 28th for fixed broadband and 26th for mobile internet download speeds in the world.

Though the outside competition has stagnated, the improved services and rivalry for the best application of these new technologies have only created higher stakes between the major providers. For big and small players alike, the recent advancements of telecommunication technology in Canada may be the first of many changes that will even out the playing field for all internet service providers and mobile carriers.

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### Canada Fixed Broadband Speeds

### Report Stats

#### TEST COUNT:

8,841,302

#### 1-YEAR CHANGE (DOWNLOAD):

40 %

#### 1-YEAR CHANGE (UPLOAD):

33 %

### Canada Mobile Speeds

### Report Stats

#### TEST COUNT:

794,613

#### 1-YEAR CHANGE (DOWNLOAD):

21 %

#### 1-YEAR CHANGE (UPLOAD):

18 %

For home internet customers in Canada, the largest internet service providers (ISPs) — Bell, Rogers, Telus and Shaw — continue to control the market. The onset of Gigabit speeds portends a future where streaming 4K Ultra HD video and no monthly bandwidth caps could become the norm. While large ISPs are rolling gigabit speeds out, new, smaller providers are emerging to service local customers with similar speeds at lower prices.

These local services target smaller towns or communities that have otherwise been on the wrong side of the digital divide, which creates potential economic opportunities for those areas. The increased availability and capability of these local providers is happening just in time, given the rise of 4K and the additional bandwidth needs associated with streaming content and video games.

In the mobile market, the competitive landscape remains very much status quo, as the incumbent wireless carriers commonly referred to as the “Big 3” — Rogers, Bell and Telus — continue to dominate the market. However, the industry has seen some movement otherwise, indicating the status quo will be challenged in the future.

The federal government’s forthcoming 600 MHz spectrum auction looks to be part of the next wave in industry-wide infrastructure development. Primarily used for television broadcasts, that band is technically similar to the 700 Mhz band that was auctioned in 2014 after broadcasters fully transitioned from analog to digital. The plan is to free some of the spectrum on the 600 MHz band for mobile broadband, and it may be the last low-frequency spectrum auction for some time. Opening the 600 MHz band will allow for better range and penetration into buildings for consumers.

This action follows an agreement between Industry Canada and the Federal Communications Commission (FCC) in the United States to harmonize TV and wireless spectrums across both nations. This could lower roaming costs for the carriers, while also reducing the number of bands mobile device manufacturers have to support their products in North America. Opening the 600 MHz band will allow for better range and building penetration for consumers. These network efficiencies should translate to better pricing for customers at the end of the day.

Bell’s pending $3.9 billion acquisition of MTS Mobility in Manitoba, if approved by regulators in Ottawa, would lead to Bell spending another $1 billion for network upgrades throughout the province in the first five years after the deal. Bell says MTS Mobility customers will benefit from higher speeds and better service. However, questions loom over monthly pricing as Bell’s plans in the province (along with Rogers and Telus) offer more airtime and data for less than what its customers currently pay in Ontario, Alberta and British Columbia.

Wind, acquired by Shaw Communications in 2015, secured $425 million in an infrastructure funding partnership with Nokia that will lead to deploying the carrier’s first LTE network using the AWS-3 band in early 2017. In the first half of 2016, Wind upgraded capacity in Edmonton and Calgary, while expanding coverage to more subway stations in Toronto, all in its ongoing bid to be the fourth national carrier in Canada. In Edmonton, average speeds rose 67% between January and June to end the period with 6.94 Mbps. In Calgary, average download speeds for Wind increased 64% to finish the same period at 7.00 Mbps.

### Canada Fastest ISPs

### Download

#### FASTEST: Rogers

Rogers is one of Canada’s largest providers of high-speed internet, cable television and wireless communications. The company is in the midst of rolling out its Ignite Gigabit 1Gbps home internet service to be available to all its customers by the end of 2016. In addition to the Gigabit plan, Rogers’ 250Mbps and 100Mbps plans also include unlimited monthly bandwidth.

### Upload

#### FASTEST: Bell

Bell currently has the largest fibre optic network in Canada, albeit with continuing deployment to cover all areas. Its Fiber internet plans mirror those Bell Aliant offers in the Maritimes, including the Gigabit plan that tops up at 940 Mbps, with 100 Mbps upload and unlimited monthly bandwidth. Bell’s IP-based Fiber TV service also relies on this internet backbone.

For major ISPs, like Rogers, Bell, Telus, Shaw and Videotron, speed and bandwidth capacity have either already reached gigabit levels in some locations, or are heading in that direction. Results in top tier speeds are led by Rogers with download speeds that sometimes double those of competitors, but it’s too early to tell how impactful Gigabit connections will be, which is the case with all the providers offering fibre services.

The major ISPs will push Gigabit speeds in accordance with other services, namely TV and mobile, where streaming and downloading higher-definition content, like movies, TV shows and video games at home, could grow in importance. While not entirely related, the move to gigabit levels also coincided with Rogers and Bell launching 4K Ultra HD TV broadcasts with sports leading the way. Rogers became one of the first in the world to broadcast sports live in 4K and offer it to customers.

An internet connection isn’t required to access the 4K signal, but Rogers did launch its new Ignite Gigabit internet plan at the same time. With unlimited monthly bandwidth and a 1Gbps connection, a household with this plan could theoretically have multiple 4K streams without taxing the overall speed of the connection. Though it’s unknown how many customers have signed up for Ignite Gigabit thus far, the company’s speed results naturally skew further down because Gigabit connections are still limited to certain regions or municipalities. Thus, Rogers’ results are more in line with the Ignite 250u and 100u plans that offer 250 Mbps and 100 Mbps, respectively, which may attract more streaming-conscious consumers.

Bell has done the same, offering a new Gigabit plan by steadily expanding its fibre-optic deployment to cover all provinces east of Manitoba. To the west, Telus and Shaw are also actively rolling out gigabit services. In all three cases, they have trailed behind Rogers, with median and mean results that show significant discrepancies, particularly with Telus. Many of the Gigabit services were made available in the last six months, so it would not be surprising that those faster speeds haven’t impacted the aggregated results yet. At $150/month, the plans are also expensive by Canadian standards.

When local providers are included in the comparison, their numbers are skewed because they service a specific area with very high speeds; with such a small relative test count compared to the larger ISPs, they aren’t often seen as a top provider within the cities they offer services. Such providers have begun operating in a number of different municipalities and with speeds faster than Rogers’ fastest speed, they deserve mention. UrbanFibre is available in parts of Vancouver. O-NET is only in Olds, Alberta. Lakeland Networks is in Bracebridge, Ontario. Alberta Supernet connects rural and urban communities in that province. Quickstream is exclusive to Manitoba, much like Skynet Canada is to Southern Quebec and Ottawa, and Coextro is for condominiums in Toronto. These providers add more options and competition to local markets.

#### HOW SPEEDTEST MEASURES FIXED BROADBAND

ISPs offering fixed broadband services are ranked based on top speed performance, which is determined using the 90th percentile of the download and upload speeds, or Top 10%, of each ISP’s Speedtest results. While many ISPs offer various service tiers, our aim is to determine who is fastest by showing the performance achieved by each residential ISP’s top tier. These speeds represent customers who subscribe to faster service tiers and provide an accurate view of the top-end performance of a given ISP. It is important to note that customers subscribing to higher tiers will generally pay more for their service than the average subscriber. For purposes of this report, only Top Providers in a given location were included in the analysis. Each ISP that accounts for at least 3% of the total sample size in the geographic area are included as a Top Provider. When analyzing Canada overall, we use the average speed, as it represents the experience of a typical Canadian consumer. When comparing ISPs individually, we use top speed performance, as it represents the performance a consumer could reasonably expect to receive if they subscribe to one of the ISP’s higher tiers of service.

This trend seems likely to continue as smaller providers are better able to service specific regions, municipalities or urban neighbourhoods at lower prices. Canadian government grants and incentives have also spurred development in that regard.

The major ISPs will push Gigabit speeds in accordance with other services, namely TV and mobile, where streaming and downloading higher-definition content, like movies, TV shows and video games at home, could grow in importance. They are already serving dense urban areas well, while offering comparable high speeds, though the rural customers are not able to share in the premium speed and bandwidth.

Gigabit speeds are already seen in dense urban areas well, while offering comparable high speeds, though the rural customers are not able to share in the premium speed and bandwidth. However, through expanding network infrastructure for both mobile and home internet subscribers, the digital divide between urban and rural Canada may finally begin to fully erode and give rural Canadians an economic jolt.

Likely, it will be some time yet before subscribers really take to Gigabit service, given the hefty monthly cost and lack of education on the merits of having such high speeds. Only time will tell if the advent of a la carte streaming TV ushers in the wider adoption of Gigabit service.

### Canada Fastest Mobile

### Download

#### FASTEST: Bell Mobility

Bell has consistently scored highly in Canada’s largest cities, having grown its LTE footprint across Canada using tri-band LTE-Advanced. Bell has also begun to roll out Voice over LTE (VoLTE) and now offers Wi-Fi Calling.

### Upload

#### FASTEST: Fido Solutions

Fido uses the same network as Rogers, yet operates fairly independently with its own plans and incentives. Its Pulse Plans include “unlimited” music streaming on Spotify, though the bandwidth is not exempt from the monthly cap. Fido Roam was launched to mirror Rogers’ Roam Like Home service. Wi-Fi calling and VoLTE remain free staple features for compatible phones.

The incumbents, regional providers and new entrants continue to roll out higher capacity in their respective networks, focusing on major urban centres first, and then trickling out to surrounding areas.

Bell Mobility has edged out its two main competitors again with an average download speed of 30.47 Mbps. Fido and Rogers Wireless, the two trailing behind Bell Mobility showed speeds of 29.84 Mbps and 29.37 Mbps, respectively. Rogers closes the gap with Bell Mobility to a small deficit on upload speeds with 10.49 Mbps to Bell’s 10.62 Mbps. Fido outpaces both with an upload speed of 10.83 Mbps. Telus trails behind for download and upload speeds, coming in fourth amongst Top Providers with Wind Mobile bringing up the rear.

Regional providers scored well in their own right. Of those regional providers, Videotron led the way with a download speed of 29.34 Mbps, with SaskTel and Atlantic Canada’s Eastlink also showing strong speeds of 15.00 Mbps and 25.16 Mbps respectively. Videotron’s average upload speed was better than Bell Mobility and Rogers Wireless with 10.65 Mbps. These numbers are perhaps unsurprising because those carriers cover smaller land masses compared to the national carriers that try to service more remote areas in the wide expanse of Canada.

After having launched its own LTE network in Quebec in 2014, Videotron has scored strongly with the speed of its network, consistently outpacing the Big 3. However, with its network limited to Quebec and no plans to expand outside the province, it has hinted at selling off its spectrum holdings in Southern Ontario, Alberta and B.C. Videotron has also hinted at partnering with Wind, who has nothing in the 700 MHz band and is already looking to grow its share in those markets, along with its looming LTE launch next year.

The results are also generally weighted by larger urban metropolitan areas, where a majority of Canadians live, which coincides with carrier deployment of LTE Advanced since 2014. LTE Advanced combines the 700 MHz and AWS bands to handle more bandwidth at theoretical top speeds of 335 Mbps, though more realistic throughput is in the 25-100 Mbps range.

Voice over LTE (VoLTE) is a new development that makes use of existing LTE infrastructure. In VoLTE, phone and video calls are routed through the network instead of legacy 2G and 3G connections. The result is shorter setup times and improved voice quality. Rogers initially launched VoLTE in 2015, and has since expanded it to all urban areas and more compatible devices.

#### HOW SPEEDTEST MEASURES MOBILE CARRIERS

The top mobile carriers in Canada are ranked using the average download speed of “Modern Devices” - those devices that are capable of connecting to the fastest, broadly-available wireless networks. In Canada, this means devices capable of 4G LTE. This ensures we provide an accurate view of the typical performance a user can achieve using a modern smartphone or tablet on a given mobile network. Top carriers are those that each account for at least 3% of the sample size in the geographic area. When analyzing the country as a whole, we use the mean value of all cellular results to account for the typical user. However, when analyzing individual carriers, we look at “Modern Devices” to account for top speeds available in Canada.

Telus rolled out VoLTE in the Lower Mainland of B.C., limiting its initial launch to the Samsung Galaxy S6 and LG G4. Despite sharing the same network with Telus, Bell rolled VoLTE out to the Greater Toronto Area (GTA) and much of Southern Ontario, along with the Yukon and Northwest Territories. Bell has announced plans to widen the scope significantly by the end of the year. The Galaxy S6 is currently the only compatible device, and the company has yet to confirm which others will be added in future expansion.

The data used for VoLTE doesn’t count towards customers’ monthly cap, and with very limited usage thus far, doesn’t appear to affect overall network performance in any meaningful way, either.

The advent of VoLTE and WiFi calling may hasten the demise for 2G and 3G networks, though this will depend on each carrier and how LTE access spreads out in rural areas. Telus and Bell will fully shut down their respective CDMA networks by January 2017, and SaskTel will follow suit in July 2017.

## City Leaders

## Regional Leaders

## Market Summary

The first two quarters of 2016 bode well for the Canadian consumer. Incremental change is the name of the game, as speeds continue to tick upward. The emerging trend of new, boutique fibre companies is undoubtedly fantastic for consumers, as the behemoths of Canadian telecom continue to boost speeds to match increasing competition and demand. Additional improvements in LTE coverage and capacity continue a progression of better speeds for a large swath of mobile consumers, and the advent of VoLTE will hasten the movement away from 2G and 3G connections.

This report was written with contributions by Ted Kritsonis.

This report was edited on April 18, 2017 to correct an error in one of the provider descriptions.

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