The day following Shaw’s announcement, the Big Three’s stock prices have taken a hit, as investors reacted to the news: By entering the Shaw family, Wind Mobile can finally become a viable competitor in the Canadian mobile landscape, as it has a more financially stable owner (via Bloomberg).
Telus took the biggest hit yesterday, as it will need to face Shaw–Wind in the West: Its stock price fell to $37.01. But it didn’t take long, because as of writing this article Telus’ stock price is up again 1.79% to $38.60.
The same goes for Rogers, which saw its stock price fall yesterday, but everything is back to “normal” today: The carrier’s stock is surging 2.23%, as of now.
Bell’s stock price, on the other hand, saw a slight drop yesterday, and it’s still down 0.39%, despite the carrier commenting that it is ready to take up the challenge.
You may recall, though, that – as OpenSignal has already pointed out – Shaw has a lot to do to bring Wind up to scratch: The carrier it acquired cannot compete with the Big 3 even with 3G data speeds.
By acquiring Wind, Shaw now has all the pieces in place to match Telus’s bundled wireless, Internet, and TV offerings in the area it operates.
Here is how Telus and Bell reacted to the news:
“We look forward to competing with Shaw in the wireless market,” Telus Chief Financial Officer John Gossling said in an e-mailed statement. Telus’s high ratings on customer service, national reach and presence in other sectors like health-care technology will help keep it differentiated, he said.
“Bell’s always ready to compete, our network leadership makes us a top competitor in any wireless marketplace nationally,” Mark Langton, a spokesman for Montreal-based BCE said in an e-mail.
Rogers has not yet commented on the acquisition announcement.
Under Shaw’s control, Wind is expected to expand its presence to smaller communities in Western Canada, where Shaw already has a strong presence, according to Wind CEO Alek Krstajic. The first target he mentioned to Bloomberg Canada was Victoria.