Analysts say growth for Canada’s telecommunications sector could be hindered by an “irrational” pricing environment and ongoing challenges to attract new customers.
The outlook could discourage investors as the sector’s major players are set to report their first-quarter earnings in the coming weeks.
Industry watchers had pointed out a relative slowdown in the back half of last year when it came to competitive intensity among the Big Three telecoms, after more than two years of intense competition to gain customers that often featured heavy discounts being offered.
However, Desjardins analyst Jerome Dubreuil says offers launched over the first three months of this year “rank among the most aggressive we have ever observed” which could lead to lower valuations of the companies if the trend continues.
He calls it a “disappointing” turn of events, which raises the question of whether lower pricing could become the norm in an environment with four national carriers, after Quebecor Inc.‘s Videotron subsidiary acquired Freedom Mobile in 2023.
National Bank analyst Adam Shine says stocks have “over-corrected” lately, reflecting fragile investor sentiment toward the sector, adding that executives would be wise to emphasize that “discipline is back in focus” when they report their earnings.
This report by The Canadian Press was first published April 13, 2026.
Companies in this story: (TSX:QBR.B)
