At the release of SaskTel’s annual report for 2017-18, which revealed a $29.6 million drop in revenue from the previous year, minister Don Morgan told the reporters that despite competition from the private sector, SaskTel will be able to stay competitive, CBC News is reporting. The company posted $1.2 billion in revenues with a net income of $121 million.
“There is private sector competition, so over the last number of years [SaskTel has] developed a keen competitive edge and I think will continue to thrive in an increasingly competitive market,” Morgan said.
“The market is changing. There’s a challenge with cord cutters, there’s increased competition. but I think the corporation is well positioned to deal with those challenges.”
The Saskatchewan-based firm attributed the revenue drop to factors like changing customer habits, the current economic climate and regional wireless pricing from competitors like Telus, Bell, and Rogers.
The minister pointed out that some private competitors are pricing products up to 40% lower in Saskatchewan than other provinces with the hope of gaining more of SaskTel’s wireless market share. According to the annual report, almost 40% of SaskTel’s revenue comes from wireless.
Currently, SaskTel controls 67% of the market, which is around 1.5% less than a few years back. As of Mar. 31, 2018, it had 607,448 wireless customers, a dip from the previous year when the figure was 615,882.