TORONTO – The federal government is giving Canada’s three largest wireless carriers two years to bring prices down by 25 per cent and is setting aside spectrum in an upcoming auction in order to further boost competition.
Industry Minister Navdeep Bains said Thursday that the incumbents Bell, Telus and Rogers must reduce prices for their wireless plans in the two- to six-gigabyte range by 25 per cent from where they were at the start of this year.
“Prices have come down in the top tier and bottom tier plans, but in the mid-tier, between the two and six gigabyte space, prices have not come down significantly, and we’re going to follow through on a campaign commitment to reduce prices,” said Bains.
The reductions would see two gigabyte plans fall to $37.50 from $50, while six gigabyte plans would fall to $45 from $60.
If incumbents don’t meet the targets, the government could take action on spectrum allocation or change its policy on whether smaller carriers could use the infrastructure of incumbents, said Bains. The government will also start rolling out quarterly reports to track the progress of the big telecoms in reaching the targets, with the first out in April.
Bell said policies that discourage investment put jobs and innovation at risk and that it’s “the worst time to jeopardize” the wireless industry as it prepares for major investments in 5G network.
Rogers said it operates in a highly competitive market that continues to deliver more affordability and value, and the company is always evolving its services to meet the needs of Canadians.
Telus said it was “extremely disappointing” that the pricing policy only targets the national carriers and that this was “yet another punitive action” by the federal government against the companies that have built Canada’s wireless infrastructure.
The government policy comes as a 2019 pricing report showed regional carriers had plans priced substantially lower than the big three carriers, though the wireless space in Canada has shifted substantially since much of the data was gathered last May.
One of the biggest changes is the shift by the big three to 10 gigabyte wireless plans with no overage penalties, which has helped lead to significant price reductions by the incumbents in numerous categories.
The report noted that between May and September last year, incumbent prices dropped by 30 per cent for two gigabyte plans and 24 per cent for five gigabyte plans.
Prices are already down by more than 25 per cent from the levels used by the Liberals in their campaign platform last fall, noted industry analyst Mark Goldberg.
“I think there was a missed opportunity for the government to declare victory, that prices have fallen by more than the 25 per cent that were in the Liberals’ campaign material.”
He said that while it’s not yet clear what kind of pressure the further reduction will put on companies, the policy puts pressure on infrastructure spending for the big three.
Bains, however, maintains that prices are still too high in the two- to six-gigabyte range that makes up about 40 per cent of subscriptions.
“Many Canadians fall within this range, and this is the area where we need to see prices going down,” he said.
He says that for the upcoming auction of 3500 MHz band wireless spectrum, the government will set aside 25 per cent of the 200 MHz on offer for smaller and regional competitors, where space allows, to further foster competition.
Big telcos have said these allocations for regional carriers drive up their costs, which they have to pass on to customers, but Bains said the set-aside was important.
“We want to make sure we create a level playing field for the regional players, and we believe this set-aside enables them to deploy 5G in a manner that allows them to compete in those key jurisdictions.”
The auction for the spectrum, which is capable of running 5G wireless technology that is up to 100 times faster than 4G systems, is scheduled for Dec. 15 this year.
This report by The Canadian Press was first published March 5, 2020.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
