Summary:
Bell and Telus are both confident in their ability to compete following Rogers’ successful takeover of Shaw Communications — reports The Canadian Press.
The Rogers-Shaw merger, which closed last month after about two years of regulatory hurdles, is the largest telecommunications deal in Canadian history and is bound to alter the country’s wireless and wireline landscape.
Bell President and CEO Mirko Bibic said that the Rogers-Shaw merger will create a strong fourth player in the Canadian market, and his company is ready to compete.
“That is very rare across the global footprint. Having four players like that is quite significant and will enhance competition and consumer value,” Bibic told analysts on Thursday as Bell reported its first-quarter financials.
Bell reported $6.054 billion in consolidated operating revenue for the March quarter, up 3.5% year-over-year, with net earnings of $788 million.
“On the wireless side, specifically, we are one of the very few countries with four players and probably the only with the convergence between wireline and wireless. I think the job ought to be considered as having been done now on the wireless front from a public policy and regulatory perspective.”
Telus, meanwhile, reported $4.964 billion in revenue for the same period, up an impressive 15.9% year-over-year, with net earnings of $224 million.
Zainul Mawji, president of consumer solutions at Telus, said in an interview that the national telco is unfazed by these “competitive challenges” and remains focused on its own strategy.
“The competitors in the market are not new to us,” she said, adding that Telus continues to “push the investment envelope” and branch out into more sectors like agriculture and health.
“We have over 20 years of consistency and delivery and so we’ll continue to focus on our customer experience, our social capitalism and the principles that are near and dear to us that resonate with our customers.”
This comes after Telus was found to have tried to “kill, slow and shape” the Rogers-Shaw merger during a Competition Tribunal review of the deal last month.
Bell added 43,289 net new postpaid mobile phone subscribers during Q1, while Telus added 47,000. Both companies saw their overall revenue increase during the March quarter, but their net earnings fell as compared to Q1 2022.
Rogers, on the other hand, reported $3.83 billion in revenue for Q1, with net earnings surging 30% year-over-year to $511 million ahead of the closing of the Shaw deal.
