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Top 10 XSP Companies
Canadian x-service providers (i.e. application, managed, wireless and Internet service providers) accounted for 13 per cent of the Top 250 list with 36 entrants. Telecommunication and cable companies
have been the strongest performers in this area, as they serve the largest number of customers with the most in-demand services. Internet use has increased noticeably in Canada, with an additional surge seen in subscriptions to high-speed Internet use.
This comes as no surprise since bandwidth speeds have increased while prices have become more affordable. An example of this is the only new entrant into the Top 10 xSP list, Cogeco Cable of Burlington, Ont. Cogeco saw a $17.6 million year-over-year increase in sales specifically from increased Internet service provision. Rogers Wireless Communications had a great year, increasing revenues by 43 per
cent to $3.99 billion, aided by its acquisition of Call-Net. Another noteworthy change from last year is the appearance of MTS Allstream, the result of a merger between Manitoba Telecom Services and Allstream.
In fact, the total revenues for the Top 10 xSP companies have increased by about $1.31 billion from 2004 to 2005, a 7.99 per cent year over-year growth for this group of top companies.
A comparison of this rate to the growth rate of all other xSP companies on this year’s Top 250 list shows the spotlight should not be solely on the top 10 players. The total revenue of all other xSP companies has increased by $67.6 million, representing a notable 13.78 per cent increase over 2004. While smaller companies may have smaller revenues than those in the spotlight, they are growing at more than
twice the rate of large xSPs.
