Globe says Telus, others seen as keeping their pos
BCE Inc (2)
Symbol C : BCE
Shares Issued 775,802,556
Close 2013-06-07 C$ 45.49
Recent Sedar Documents
View Original Document
Globe says Telus, others seen as keeping their postions
2013-06-10 08:50 ET - In the News
See In the News (C-T) Telus Corp (2)
The Globe and Mail reports in its Monday edition in its latest efforts to foster more competition in the wireless industry for consumers, Ottawa may have given a gift to investors. The Globe's Simon Avery writes the Big Three telcos saw more than $2.5-billion wiped from their combined market valuations last week after the government brought its weight to bear on the sector. First, the CRTC imposed new rules of conduct, which included caps on data charges and a two-year limit on the duration of wireless phone contracts. Then Industry Canada rejected Telus's plans to purchase Mobilicity. The shares of Telus, BCE and Rogers Communications are down from February. Some of the weakness reflects concerns about rising rates on government bonds, which make the yields on telecom stocks less attractive. Increased regulation and uncertainty are also dragging down the share prices of the incumbent carriers, giving investors a chance to buy into the high-yielding sector at a discount. At current prices, Rogers and Telus are paying dividends of almost 4 per cent and BCE of 5 per cent. Tim Casey, an analyst at BMO Nesbitt Burns, still rates the telcos "outperform." In short, the oligopoly remains intact.