Latest news with #Telus
CTV News
6 hours ago
- Business
- CTV News
CRTC says its wholesale internet rules balance need for competition and investment
Networking cables in a server bay are shown in Toronto on Wednesday, November 8, 2017. THE CANADIAN PRESS/Nathan Denette Canada's telecommunications regulator has once again determined the country's largest internet companies should be able to provide service to customers using fibre networks built by their rivals — as long as they are doing so outside their core regions. It marks the CRTC's final decision on the contentious matter — which has pitted Telus Corp. against BCE Inc. and Rogers Communications Inc., along with many smaller providers — after a lengthy process filled with several interim rulings and reconsiderations. Bell has argued against the policy, saying it discourages major providers from investing in their own infrastructure, while some independent carriers have raised concerns that it could make it more difficult for them to compete against larger players. Meanwhile, Telus has defended it as a way to boost competition in regions where it doesn't have its own network infrastructure, such as Ontario and Quebec, which then improves affordability for customers. The CRTC says in its latest decision that the rules effectively balance the need for both competition and investment, while only having a 'modest' near-term effect on the market share of regional carriers. It says it plans to closely monitor the effect of the framework on the industry, noting there have been 'early indicators of improved competitive intensity' but that the extent to which the new rules 'will ultimately be successful is still unknown.' This report by The Canadian Press was first published June 20, 2025. Sammy Hudes, The Canadian Press CTV News and BNN Bloomberg are owned by Bell Media, which is a division of BCE.
Globe and Mail
6 hours ago
- Business
- Globe and Mail
CRTC upholds decision allowing large telecoms to resell internet services on each other's networks
Canada's telecom regulator has upheld its decision allowing large telecoms to resell internet services by piggybacking on competitors' networks, siding with arguments made by Telus Corp. versus most of its competitors in the latest development of a multi-year, industry-wide policy debate. Under the fibre wholesale framework, designed to improve internet affordability and competition, the government previously required three carriers - BCE Inc.'s Bell Canada, Telus and SaskTel - to give competitors access to their fibre networks at regulator-set rates. Given the steep cost of building infrastructure, the framework was designed to give new market entrants an opportunity to enter the market and offer competitive internet services and prices. From 2024: Ottawa orders CRTC review of Rogers, Bell and Telus reselling services on each other's networks The latest question under review was whether, in addition to smaller regional companies, the country's three largest carriers would be allowed to take advantage of the mandated rates as well. In its decision, issued Friday morning, the Canadian Radio-television and Telecommunications Commission held firm on its previous decision that Telus, Bell and Rogers are allowed to expand into each others' fibre networks where they don't already have their own infrastructure. In order to overturn the CRTC's decision, those not in favour of incumbent access had to prove there was 'substantial doubt' as to whether the CRTC had made errors in its original policy allowing the sharing. But the regulator said that they had not done so. 'While the Commission appreciates the significance of the applicants' claims, the balance of the evidence does not establish a substantial doubt as to the correctness of the Commission's decision. Therefore, the Commission declines to vary the Final Decision,' the CRTC said in its decision. Opinion: The CRTC has failed to protect the Canadian broadcasting industry This means that Telus, whose network is primarily in the west, can expand over Bell's networks in the east, and vice versa. Rogers has infrastructure spanning the country, so it is excluded from accessing the mandated rates near-nationally. The company has some fibre, but it is not yet being required to grant competitors access to it. The CRTC said that several thousand Canadian households have already purchased new internet plans offered by dozens of providers using the access enabled by the framework. 'Changing course now would reverse the benefits of this increased competition and would prevent more Canadians from having new choices of ISPs in the future,' the CRTC said. The decision may not yet be final. Cabinet has the power to make changes to the regulator's decision itself, or require that the CRTC review its policies again, until August 13. Their involvement is considered a last hope by those in favour of blocking incumbent access. CRTC considers standardized labels in hearing on home internet plans The country's biggest telecoms have been facing increasing pressure in recent years, given an overall market slowdown, reduced immigration meaning fewer new customers, and high debt loads. The country's biggest telecoms have been facing pressure due to high debt loads and the mature market's overall slowdown. The policy debate created a rare industry split that saw nearly every one of the country's largest telecoms in agreement and only one major carrier, Telus, split from the rest. Telus argued it should be allowed to resell on SaskTel and Bell's network, saying that where an incumbent operates out-of-territory, it is acting as a new competitor with the potential to disrupt the status quo, to the benefit of consumers. Bell, Rogers, Cogeco Inc., Quebecor Inc., Bragg Communications Inc.'s Eastlink, Teksavvy and the Competitive Network Operators of Canada - representing independent companies - all argued that the regulator should bar the three incumbents from mandated access, disagreeing that Telus would be a 'new entrant.' Bell and Rogers said allowing the incumbents to resell internet would put a chill on network investment, and Rogers added that none of the large incumbent players need to be enabled by mandated wholesale access to compete. Others argued that because of their scale and ability to bundle internet with other services, incumbents like Telus operating in their networks could swallow up smaller competition and lead to more market consolidation in the long term. Telus called this view an attempt to stifle competition. The Competition Bureau, for its part, supported incumbent sharing out-of-network, noting the risks of increased market coordination and possible negative impacts on small competitors but saying the benefits outweighed the risks. But the CRTC found that industry projections suggested allowing the incumbents to share networks would only have a 'modest near-term impact' on regional competitors, despite applicants' claims that the sharing would severely harm those providers. It also found that internet providers would be encouraged to continue investing in their networks, given continued pressure to compete, the cost savings of operating fibre compared to copper networks, and other protections included in the decision. It said it will monitor the use of the framework and will make adjustments if necessary. The federal government has yet to finalize the access rates.
Yahoo
4 days ago
- Business
- Yahoo
Dividend Investors: Why I'd Buy Telus Stock Over BCE Any Day
Written by Joey Frenette at The Motley Fool Canada The Canadian telecom scene has been through a hurricane of volatility in recent years, to say the least. With telecom titan BCE (TSX:BCE) slashing its dividend payout, passive income investors may be wondering if the worst is over yet. And while BCE stock has struggled to gain traction, I think that its new payout is more than sustainable. As I noted in a prior piece covering BCE and its big dividend reduction, I think there could be a long-term pathway to recovery and, with that, above-average dividend growth prospects. In any case, I have no idea if BCE's pains will be subsiding anytime soon. There are a lot of issues to address before shareholders can feel comfortable again. And while buying the dip may seem wise, I think that there's a better way to play the telecom scene while getting a much heftier dividend yield for doing so. While I'm not against picking up a few shares of BCE at around $30-32 while the dividend is just shy of the 6% mark, I just find Telus (TSX:T) and its massive 7.6% yield to be a better bet. Not only will you get more income, but the stock chart isn't nearly as horrifying. Of course, it's too early to tell if a bottom is already in the name. Either way, Telus stock seems somewhat less difficult to own than the likes of its now smaller rival. In any case, Telus stock has a long way to go if it's to see its prior highs of around $35 per share again. Industry headwinds have been tough, but recent quarters give investors something to be hopeful for, even if industry headwinds prevail for another few years. At the time of writing, T stock goes for 27.9 times trailing price to earnings (P/E), which is still not cheap for a name that's lost more than 35% of its value from peak levels. Still, the growing, swollen dividend yield is so tempting. And if you can get behind the company's turnaround story, I find the name to be a top pick in the ultra-high-yield space today. The company recently proposed to buy back Telus Digital after spinning off the business around four years prior. Indeed, perhaps there's a bit of value to be unlocked as the firm looks to turn around the IT service provider that hasn't really had the best time on its own following the 2021 spin-off. Deal or not, I'm a big fan of Telus's balance sheet and the growth options it can provide the firm as it tries to sustain a comeback. Additionally, Telus seems open to using generative artificial intelligence to save money in various areas, such as customer service. Any added margin gains are sure to be welcomed by investors as the company continues to slog through a difficult environment. In any case, I'm a fan of management and think the firm has what it takes to invest in long-term growth while keeping its fat dividend intact. For that reason, I like T stock more than most other dividend payers, yielding over 7%. The post Dividend Investors: Why I'd Buy Telus Stock Over BCE Any Day appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Telus proposes full acquisition of Telus Digital
Canadian telecom company Telus has proposed buying all remaining shares of its listed digital services subsidiary, Telus Digital for $3.40 per share. The price represents a 15% premium over Digital's 11 June 2025, closing price on the New York Stock Exchange and a 23% premium over its 30-day volume-weighted average price on Canadian and US markets. The digital arm operates across various industries, including technology, communications, Fintech, travel, retail, healthcare, and automotive. The move is part of the company's strategy to tighten its grip on the unit's AI capabilities. Telus president and CEO Darren Entwistle said: 'Our proposal to fully acquire Telus Digital reflects our belief that closer operational proximity between Telus and Telus Digital will enable enhanced AI capabilities and SaaS transformation across all lines of our business.' Telus already owns 57.4% of the digital arm's shares, including 152,004,019 multiple voting shares and 6,874,822 subordinate voting shares, holding 86.9% of voting power, per Digital's Q1 2025 financials. The non-binding offer, which could be paid in cash, Telus shares, or a mix of both, hinges on due diligence, a mutually agreed transaction structure, and definitive agreements. It also needs approval from Telus Digital's board, and has therefore urged Digital's board to form a special committee of independent directors to review the proposal. At this stage, no formal agreement has been established, and there is no guarantee that a transaction will occur, according to the company. Entwistle added: 'We anticipate that our deep familiarity with Telus Digital will enable us to conclude this proposed transaction, with appropriate engagement from Telus Digital, quickly and efficiently and, post-closing, effectively integrate the business and the team. 'Telus Digital will continue to be an important business unit within Telus, underscored by its demonstrated leadership in customer service excellence, digital transformation and heartfelt caring in the communities where team members live, work and serve.' Barclays is acting as the exclusive financial advisor to Telus, while Stikeman Elliott and A&O Shearman are providing legal counsel. In May 2025, Telus announced plans to invest more than C$70bn ($51bn) in Canada by 2029 to enhance its network infrastructure. The investment will focus on launching two new AI data centres, expanding wireless coverage in rural areas, and reducing greenhouse gas emissions through eco-friendly technologies. "Telus proposes full acquisition of Telus Digital" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
The Best Way to Deploy $10,000 in This Market Environment
Written by Adam Othman at The Motley Fool Canada April 2025 saw global stock markets enter a strange phase of declines when the newly reelected US President, Donald Trump, announced new tariffs. Trump did not spare any country from tariffs, including Canada and Mexico. Among the targets for new tariffs was China which, in turn, applied tariffs on US goods as well. That followed a bit of back and forth, which also saw Trump suspend tariffs for 90 days across the board, except on China. As of this writing, the tariffs remain at a standstill, and the US-China trade tensions seem to be easing up. However, nobody knows how long that'll last. There is a high likelihood of things turning south. Since the announcement of tariff suspensions, the S&P/TSX Composite Index, the benchmark index for the Canadian stock market, has climbed by over 17%. However, many analysts still fear a recession. If a recession does come to pass, it may be better to prepare and implement a defensive strategy. The goal should be to identify and invest in TSX stocks capable of weathering a potential recession and emerging stronger on the other side. Against this backdrop, the following two TSX stocks might be good picks to consider. Telus Corp. (TSX:T) is one of the top telecom companies in Canada. The $33.5 billion market capitalization company, headquartered in Vancouver, is one of the Big Three telcos. It has around a third of the mobile phone subscriber market. Telus also has a wireline presence in the Quebec region. More recently, the company has started increasing its fibre optic footprint to upgrade its infrastructure and offer better value to customers. In this day and age, everyone needs to be connected with the rest of the world. Telcos like Telus are and shall continue to be essential businesses. Telus fulfills an important need for its consumers with its wireline and wireless internet services. The company also has several subsidiaries operating in various sectors to diversify the its revenue streams. As of this writing, Telus stock trades for $21.99 per share and boasts a juicy 7.6% dividend yield that you can lock into your portfolio today. Fortis Inc. (TSX:FTS) is undoubtedly my top pick when it comes to investing in utility companies. Utility businesses don't offer much in terms of capital gains. Typically, utility stock prices are less affected by the rest of the market. As boring as that might be for growth-focused investors, it is this same defensive factor that makes them a good holding during market downturns. Fortis is a $32.6 billion market cap utility holding company that owns and operates several electric and natural gas utility businesses across Canada, the US, and the Caribbean. It serves over 3.4 million customers, operating in highly rate-regulated markets. Most of its revenue comes from long-term contracted assets. All these factors mean it generates stable and predictable cash flows across market cycles. In turn, the company can use the proceeds to fund capital programs and increase shareholder dividends. As of this writing, FTS stock trades for $64.93 per share and boasts a 3.8% dividend yield, accompanied by a 50-year dividend-growth streak. Considering how stocks across the board seem to be appreciating in value right now, preparing for a recession might seem like you're being overly cautious. However, it is always a good idea to hope for the best but prepare for the worst. To this end, making defensive investments focusing on financial resilience and capital protection makes sense. Fortis stock and Telus stock are two blue-chip Canadian stocks that I feel will work well for this goal. The two industry-leading stocks offer the kind of cash flows and revenue supported by defensive business models that can make them excellent long-term holdings for your self-directed portfolio. The post The Best Way to Deploy $10,000 in This Market Environment appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and TELUS. The Motley Fool has a disclosure policy. 2025
