Canada’s biggest telecom providers are experiencing marked subscriber growth thanks to an influx of immigrants to the country.
In a new report, credit rating agency Morningstar DBRS stated that Canada welcomed more than one million immigrants in 2022 to 2023 period, which was a “material contributing factor to strong subscriber growth” for the likes of Bell, Rogers and Telus.
During this time, national mobile subscribers rose to an estimated 35.4 million in Canada, a marked increase from the 33.6 million prior. Further, residential internet subscriptions rose by 5.6 percent in 2022. Altogether, the ‘Big 3′ telecom companies added roughly 112,000 broadband internet customers combined in the fourth quarter of 2023 alone.
However, Morningstar DBRS noted that the federal government has confirmed plans to level out the number of new permanent residents in 2026 following record-breaking admittance in 2021 and 2022. Therefore, the agency warns that telecoms’ subscriber growth could be challenged by “reduced or slower immigration flow,” as well as the “cost of living crisis” and a “maturing wireless market.”
To address this, Morningstar DBRS said telecoms “will have to continue to make significant investments in technology and fibre network infrastructure.” The report notes that the Canadian telecom sector has spent an average of $12.1 billion annually on network infrastructure over the past five years.
Clearly, though, the telecoms are doing well right now, especially in situations such as Bell’s recent layoffs of thousands of people to save an estimated $150 to $200 million.
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Via: The Canadian Press
