Bell Canada CEO Mirko Bibic says economic uncertainty, a trade war, and lower immigration targets are slowing telecom growth.
“Everyone is going to have to get comfortable with lower volumes of sales,” he told Bloomberg, adding that while wireless demand will continue, growth may not be as fast.
While tariffs do not directly affect Bell, Bibic said the company is monitoring their “secondary impacts” on consumer confidence and corporate spending. “If it suppresses both of those in a dramatic fashion, then the impact will be potentially significant,” he said.
Canada is cutting immigration by nearly 20% this year, leading to a 56% drop in Bell’s net postpaid wireless subscriber additions in the fourth quarter. While tariffs don’t directly impact Bell, Bibic warned their “secondary effects” on consumer spending could be significant.
Over the past two years, 2023 and 2024, Canada admitted close to or just over 1 million permanent residents, with approximately 471,000 in 2023 and around 475,000 in 2024, based on Immigration, Refugees and Citizenship Canada (IRCC) targets and projections, totaling roughly 946,000—potentially exceeding 1 million if 2024 slightly overshot estimates.
Looking at 2021 to 2024, the figure rises to about 1.79 million permanent residents (405,000 in 2021, 437,000 in 2022, 471,000 in 2023, and ~475,000 in 2024). Including temporary residents like students and workers, the total surpasses 1 million in 2023 alone (over 1.07 million), with similar trends likely in 2024 before tighter controls began.
For 2025, Canada lowered its permanent resident target to 395,000—a 21% drop from 2024’s 485,000—and introduced temporary resident limits (e.g., 300,000 arrivals), aiming to ease housing and infrastructure strains after rapid population growth to 41 million by April 2024.
Bell’s stock has dropped 27% in the past year, though it has rebounded slightly, closing at $34.01 on Tuesday and is currently trading down 1.26% as of writing at $33.58 per share.
Despite analyst pressure, Bell maintained its $1 per share dividend, yielding 11.7%. Some analysts argue a 50% cut is necessary, though Bibic declined to confirm any changes, saying the board will assess economic conditions and competition.
Bell’s $5 billion CAD acquisition of U.S.-based Ziply Fiber has also drawn scrutiny. Some analysts questioned the high price, though sentiment has improved. Bibic defended the move, arguing that international expansion strengthens Bell and benefits Canada.
“We should always want — and in this environment it’s particularly important — to have strong domestic champions, and strong Canadian companies,” he said.
Bell’s Lucky Mobile, which is a prepaid service, aggressively targets newcomers since they can sign up without needing a credit check that is required by postpaid plans. Lucky Mobile and Virgin Mobile have special deals available at Dollarama stores, seemingly targeting those seeking an easy entry into a new cellphone plan.
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Bell Canada CEO Mirko Bibic says economic uncertainty, a trade war, and lower immigration targets are slowing telecom growth.
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Typical Bell mentality, forget about what's good for the country, as long as Bell does well.