New report from Navigant Economics highlights key trends and
infrastructure differences between North American and European markets
CHICAGO--(BUSINESS WIRE)--Sep. 13, 2013--
According to a new study from Navigant Economics, Canadian and U.S.
wireless markets outperform those in Europe in higher levels of
investment, innovation and customer usage. Now, however, according to
the study’s authors, Canadian regulators are changing some of the
policies that have been responsible for that country’s success and are
adopting policies similar to those in Europe.
“Canadian regulators appear to be moving in the direction of adopting
the sorts of policies that have led to market fragmentation and stalled
investment and innovation in Europe,” said Jeff Eisenach, Managing
Director of Navigant’s Economics practice and a co-author of the report.
“As the report concludes, policies designed to ‘promote competition’ by
artificially increasing the number of competitors have been shown to
fail in Europe and should be avoided in North America.”
According to the report, North American mobile wireless consumers use
their devices for both voice and data services far more intensely than
those in Europe. These consumers also enjoy a faster, more capable
wireless network. Other findings from the report include:
North Americans use two to five times more voice time and twice as
much data than Europeans.
Canadian wireless carriers invest 2.3 times those in Europe, per
connection, in infrastructure.
North American wireless speeds are 75 percent faster than the European
average – a gap that is expected to grow.
While North American and European consumers are equally likely to own
smartphones, North American consumers are more likely to use their
phones for web-related activities including mobile banking, watching
video on their phones and browsing the web.
“Consumers in North America increasingly benefit from more advanced
networks than those in Europe and as a result, consume more services,”
said Mr. Eisenach. “This leads to additional revenue generation
necessary to support ongoing investments. It’s a continuing cycle
resulting in a constant stream of benefits recognized by consumers. In
contrast, European countries have adopted policies trying to force more
competitors into a market, which has resulted in companies that are too
fragmented to invest in new infrastructure, causing a problematic cycle
of declining network capacity and quality.”
To learn more about the differences between the mobile markets in North
America and Europe, and how regulation plays a role in these
differences, download a copy of the report at www.navigant.com/canada-mobile-report.
The study was authored by Erik Bohlin, Kevin W. Caves and Jeff Eisenach
and sponsored by Canadian telecommunications carrier TELUS.
Navigant (NYSE:NCI) is a specialized, global expert services firm
dedicated to assisting clients in creating and protecting value in the
face of critical business risks and opportunities. Through senior level
engagement with clients, Navigant professionals combine technical
expertise in Disputes and Investigations, Economics, Financial Advisory
and Management Consulting, with business pragmatism in the highly
regulated Construction, Energy, Financial Services and Healthcare
industries to support clients in addressing their most critical business
needs. More information about Navigant can be found at www.navigant.com.
Jennifer Marshall, 312-583-4166
Paul Longhini, 312-583-5836