Cellular telephone service industry: Historical statistics

1987 to 1996

Revenues from cellular telephone services grew from $118 million to $2.4 billion between 1987 and 1996, representing a compounded annual growth rate of 40%. Since 1991, cellular service revenues have grown at annual rates ranging from between 22% and 29%.

Through a special survey of cellular service providers, Statistics Canada has compiled the first comprehensive statistical record of the cellular telephone industry's development between 1987 and 1996. The data quantify the growth and financial performance of the industry.

During the same nine-year period, the number of subscribers grew from 98,300 to 3.4 million, a compounded annual growth rate of 48%. Since 1990, annual subscriber growth rates have fluctuated between 30% and 40%.

Average monthly revenue per subscriber has declined steadily from $116 in 1987 to about $70 in 1996. This steady decline can largely be attributed to the increased penetration of personal-use customer markets, in which the cellular telephone is used for personal safety or casual convenience.

In 1996, cellular phone licensees made capital expenditures of approximately $1.1 billion (excluding capital expenditures made by two new Personal Communications Services [PCS] licensees). This was more than double the annual average level of capital expenditures during the 1990-to-1995 period and can largely be attributed to the establishment of new digital networks by certain service providers, as well as the expansion of the traditional analogue network coverage.

Since 1988, the number of full-time employees in cellular telephone services has almost tripled from 2,465 persons to 7,075. The number of employees has doubled since 1993 and increased 16% between 1995 and 1996.

More detailed data will be published shortly in the Communications: Service bulletin Vol. 28, no. 1 (56-001-XPB, $13/$42), and a detailed report and analysis of the data will be published in May in the Science and technology redesign project analytical paper series, no. 14 (63F0002XPB, $5). This report compares the cellular telephone industry with other communications industries in Canada, as well as cellular telephone markets in other countries. The report also assesses the growth prospects for the Canadian cellular industry.

For further information on this release, contact Daniel April (613-951-3177); Internet: apridan@statcan.gc.ca) or Dustin Chodorowicz (613-951-3497; Internet: choddus@statcan.gc.ca), Telecommunications Section, Science and Technology Redesign Project.

Table: Cellular telephone services - selected historical statistics
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Year                            Cellular      Subscribers          Capital    
                                 service     (at Dec. 31)     expenditures    
                                 revenue                                      
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                             $ thousands           number      $ thousands    
                                                                              
1987                             117,611           98,364          158,928    
1988                             226,006          202,633          253,131    
1989                             361,871          345,178          422,010    
1990                             619,230          583,766          627,356    
1991                             762,799          775,831          361,654    
1992                             932,178        1,026,611          422,659    
1993                           1,173,471        1,332,982          456,460    
1994                           1,508,546        1,865,779          416,837    
1995                           1,921,812        2,589,780          618,267    
1996                           2,440,841        3,420,318        1,099,580    

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Year                           Full-time    
                               employees    
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                                  number    
                                            
1987                                n.a.    
1988                               2,465    
1989                               3,292    
1990                               4,518    
1991                               4,554    
1992                               4,718    
1993                               4,710    
1994                               5,438    
1995                               6,086    
1996                               7,075    

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(n.a.)  Not available.