Canada’s telecommunications companies don’t expect to be hit hard by the ongoing trade war with the U.S. but face other economic challenges that could limit their ability to attract new customers in the near future.
A report Monday by Desjardins says major providers that presented at its Montreal conference last week “were clear that they have limited exposure to tariffs,” while acknowledging the sector is not immune to negative macroeconomic pressures.
Analyst Jerome Dubreuil says in a note to clients that he wouldn’t be surprised to see one of the Big Three carriers report no net additions of new customers in its latest quarter, or even a decline.
He says management teams “generally sounded cautious” about their first-quarter subscriber additions given a “significant” slowdown in immigration.
The note says companies may also be aiming to divest assets this year to reduce debt amid slow industry growth, high dividend payouts and expensive spectrum payments.
The Desjardins conference was held March 17 and 18, and included presentations from Bell Canada’s parent company BCE Inc., along with Telus Corp., Quebecor Inc. and Cogeco Communications Inc.
This report by The Canadian Press was first published March 24, 2025.
Companies in this story: (TSX:BCE, TSX:T, TSX:QBR.B, TSX:CCA)
