The Conference Board of Canada has predicted that Canadians can expect intense competitive pressure to hold down price increases in the telecommunications industry for the next few years.

As acquisitions in the sector continue apace, competition is fierce. With profit margins low, the major players can still operate, but small operators find it harder.

'This increasing competition benefits consumers - but will constrain profit growth for telecommunications companies,' said Michael Burt, the think-tank's associate director of industrial outlooks. 'Fierce competitive pressures in growing segments of the telecommunications industry will limit price increases,' he added.

'As a result, after posting double-digit profit growth in each of the past two years, industry profits are expected to grow by just 1.1 per cent in 2008, to $6.8 billion,' the Conference Board says. 'Profits will remain flat in 2009 and will grow modestly each year between 2010 and 2012.'

Such a situation is bound to slow down the pace of growth of the telecoms sector all over the world. But revenue generated though VAS and 3G services will help the industry avoid stagnation. Don’t be surprised if the companies even start crediting your account for making calls one day. X