The real winners of Thursday’s CRTC decision?  Canadian telecommunications carriers

The real winners of Thursday’s CRTC decision? Canadian telecommunications carriers

Some telecommunications analysts and consumer advocates say the country’s regional wireless and Internet operators will benefit the most from a landmark CRTC regulatory decision on Thursday.

Analyst reports indicate that two of Canada’s listed mid-size regional telecommunications groups will likely have more leeway to expand, given new CRTC restrictions on BCE’s Bell Canada, Rogers Communications Inc. and Telus Corp.

But analysts at RBC Capital Markets and Canaccord Genuity say the Big Three national wireless service providers will likely be able to handle the new CRTC rules, which were announced Thursday.

“We see this move as ‘constructive enough’ and manageable for national carriers while ‘reaching out’ to existing regional wireless carriers,” RBC analyst Drew McReynolds wrote in a report to customers.

Patrick Horan, portfolio manager at Agilith Capital, said that overall the proposals were “well balanced” between the interests of large companies, small competitors and consumers, but “I don’t think that changes much in the future. ultimately, ”he told CBC News in an interview.

“It won’t hurt the Big 3 in terms of market share at all.”

One of Canada’s most outspoken consumer groups, OpenMedia, criticized the CRTC for putting too much emphasis on regional carriers, doing too little to limit the market power of the Big Three and very little to help new entrants in the wireless markets.

Analysts took a more favorable view of the CRTC’s decision, pointing out that Quebecor’s Videotron will have more options to strengthen its base in Quebec or buy assets in other provinces and that Cogeco Communications may be able to move forward. its strategic goal of adding wireless to its Internet and cable. Television networks in Ontario and Quebec.

Horan said customers of small regional businesses like Videotron and Cogeco are indeed poised to take advantage of the new regime, but ultimately they only represent a small slice of the market and it is unlikely that they will take advantage of the new regime. ‘they are experiencing spectacular growth.

Most observers, including the CRTC, say the future of Shaw Communications and its subsidiary Freedom Mobile in Ontario, Alberta and British Columbia is more difficult to predict due to a planned takeover by Rogers.

Leave a Reply

Your email address will not be published. Required fields are marked *