LeCanadian

Top Menu

  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

Main Menu

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
Sign in / Join

Login

Welcome! Login in to your account
Lost your password?

Lost Password

Back to login
  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

logo

Header Banner

LeCanadian

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • 7 reasons why online casinos are so popular in Ontario

  • La Commission indépendante soutient le recours de la Cour suprême contre le déni des droits des non-francophones par le Québec

  • Independent Commission endorses Supreme Court of Canada challenge against Quebec’s denial of rights to non-francophones

  • Ottawa International Crafts & Book Expo 2023: An assembly of literary brilliance

  • Diane Descôteaux – Une haïkiste passionnée: Le Salon d’Ottawa

Business
Home›Business›CRTC’s Move to Slash Wholesale Rates Could Hurt Revenue, Network Investment: Analysts

CRTC’s Move to Slash Wholesale Rates Could Hurt Revenue, Network Investment: Analysts

By admin
October 13, 2016
1939
0
Share:

The fallout from the federal telecom regulator’s move to slash wholesale Internet rates continues as more analysts predict the decision could be bad for big players’ broadband revenue and potentially dampen investment in networks.

Stock prices for the largest telecom and cable companies dipped Friday after the Canadian Radio-television and Telecommunications Commission’s after-market Thursday announcement of cuts, dramatic in some cases, to the wholesale rates incumbents can charge resellers for access to their high-speed Internet networks.

Scotiabank lowered its price targets by one per cent to two per cent for cable companies Rogers Communications Inc., Quebecor Inc. and Cogeco Communications Inc. to reflect expectations of lower average revenue per user, analyst Jeff Fan wrote in a note to clients Tuesday.

The decision is expected to have a much larger impact in Quebec and Ontario, home to an estimated 70 per cent of revenue from wholesale customers, Fan wrote. He didn’t change his targets for Shaw Communications Inc. and Telus Corp. since there is less wholesale activity in the West.Advertisement

“We are also concerned that this Order could ultimately affect the return of network investments, which could reduce the level of aggregate investment in fixed broadband infrastructure,” Fan wrote.

Barclays analyst Phillip Huang agreed the decision could lead to slower broadband investments.

“The cables and telcos are already locked in an intense and expanding price battle across the major markets in Canada,” Huang wrote Tuesday, noting that cable companies are upgrading their networks as telecoms spend billions on fibre-to-the-premises connections.

“It remains to be seen whether (the decision) could trigger a slowing in broadband investments, given those investments are now likely to generate lower returns and longer paybacks,” he wrote.

But both analysts question the extent resellers will pass their cost savings on to consumers given the rates announced last week are only interim. Final rates are expected to take a few more months.

“We believe that in the prior higher rate regime, Internet resellers were unprofitable and that the new rates provide some breathing room,” Fan wrote.

He expects resellers would need to reduce their prices significantly in order to attract more people to their services. But that could be challenging given they don’t typically sell bundled services (the big players offer deals when people sign up for home phone, television and Internet) and still have high costs for users that use a lot of bandwidth.

Meantime, Huang expects the incumbents could focus on their broadband flanker brands (Rogers’ Fido and Bell’s Virgin) to defend against the strengthened resellers.

Read More..

Post Views: 2,086
Previous Article

Hydro One Scrambles to Revamp Customer Service ...

Next Article

Babcock Happy with Matthews and Other Kids, ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Related articles More from author

  • Business

    Some flexibility on NAFTA’s regional rules of origin, Freeland says

    November 25, 2017
    By admin
  • Business

    Wal-Mart Tackles Food Safety with Blockchain Test

    November 19, 2016
    By admin
  • Business

    Comparing EU and US Forex companies for Canadians

    March 23, 2018
    By admin
  • Business

    Why Taking Time Off Can Benefit Your Business

    May 19, 2016
    By admin
  • Business

    Early summer travels boost Transat’s earnings, outlook

    August 22, 2017
    By admin
  • Business

    After Bell’s Email Migration, I Started to Get Sex Spam: Roseman

    November 10, 2016
    By admin

Featured Petition

  • Bell Baker’s John Summers – Stop a Crime Against Humanity – What would his Mother think?
  • John E Summers: Ottawa Lawyer Attacks Motherhood and Civil Rights – Support His Disbarment
  • Stop Ottawa Lawyer John Summers’, Marcella Carby-Samuels’ & David Tenenbaum’s Ab
  • Week
  • Month

Week

Sorry. No data so far.

Month

  • 7 reasons why online casi... In the ever-evolving landscape of entertainment and lei...

Popular on The Le Canadian

  1. The Independent Canadian Commission on Civil and Human Rights
  2. AgoraCosmopolitan
  3. Ottawa Market
  4. Agora Publishing Consortium
  5. Le Journal Canadien
  6. Dominion: Food News
  7. LeCanadian.com
  8. The Ottawa Star
  9. Capitalistocracy.com
  10. Agora Books Author House
  11. First Nations Press
  12. The Etiquette Show
  13. Ontario People's Front





Mark's



Recent Posts

  • 7 reasons why online casinos are so popular in Ontario
  • La Commission indépendante soutient le recours de la Cour suprême contre le déni des droits des non-francophones par le Québec
  • Independent Commission endorses Supreme Court of Canada challenge against Quebec’s denial of rights to non-francophones
  • Ottawa International Crafts & Book Expo 2023: An assembly of literary brilliance
  • Diane Descôteaux – Une haïkiste passionnée: Le Salon d’Ottawa
  • Diane Descôteaux – Une haïkiste passionnée: Le Salon d’Ottawa
  • How Canadians can access online casinos through mobile phones
  • Comment gérer un retard de vol ?
  • 5 ways sudoku boosts brain health
  • 10 tips to successfully market your law firm

Most Viewed Posts

  • Automated China –Mass-Producing the Future (61,385)
  • Health: Shampoo Helps Hair Loss Sufferers (57,791)
  • Citizens of Italy unleash mass protests against mandatory vaccination law (39,211)
  • Why Investors are Putting Their Money on High-End Real Estate (37,246)
  • Montréal : le cœur battant de la génération Y (37,089)
  • Une Autre Facette de Richard Lipman : Le Soutien d’un Psychologue à la Fondation Fauna (32,513)
  • Introduction To How And Where You Can Trade CFDs (30,169)
  • Canada’s Property Values Rise, In Spite of Signs of Market Slowdown (21,164)
  • “Not Gonna Write Poems” A Poetry Book by Dr. Michael Lee: Could He Be The Next Shel Silverstein? (17,364)
  • Smoking is Still a Problem in Society – But it’s a Problem That’s Being Addressed (16,160)

Visitors

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating