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The profitability of the industry as a whole improved in 2006, in large part as a result of continued expense control. Despite a relatively modest 2.8 % increase in revenues, operating profits jumped 8.5 % to $ 8.0 billion.
In 2006, wireline companies’ revenues decreased by 3.3%, to $22.2 billion. This decline concerned many wireline markets, including a significant 7.6% decline in voice services.
The revenues of the wireless segment totalled $12.8 billion in 2006, an increase of 16.4% compared to 2005. For a third consecutive year, all major markets contributed to the industry’s growth.
Total operating revenues in the reseller industry fell by 6.8% in 2006, while operating expenses declined by 12.8%. This resulted in the industry experiencing a significant increase in operating profit, to $88.0 billion.
In 2006, while operating revenues remained virtually unchanged (-0.1%) in the satellite and other telecommunications industries, operating expenses continued to increase, by 4.4% over 2005.
In 2006, total labour expenses in the telecommunications industries remained relatively flat, with a 0.3% increase over 2005. The 1.4% increase in full-time labour expenses was offset by the decline in part-time labour expenses of 17.0%.