Should Verizon (VZ) enter the Canadian market (previous), investors in Canadian wireless...

Should Verizon (VZ) enter the Canadian market (previous), investors in Canadian wireless providers can expect a hit of up to 18% in stock prices, according to Desjardins analyst Maher Yaghi. Yaghi thinks that BCE stock could decline by 10%, Telus (TU) by 17% and Rogers Communications (RCI) by 18%, if as he expects Verizon gained 15% Canadian market share.

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Comments (7)
  • Eder
    , contributor
    Comments (9) | Send Message
    I don't think Verizon will be able to compete in Canada. We don't cater to foreign competition.
    24 Jun 2013, 11:05 PM Reply Like
  • Cdn_divman
    , contributor
    Comments (164) | Send Message
    Even if you're right that wont stop the competing stocks from going down on the news.
    24 Jun 2013, 11:30 PM Reply Like
  • B101
    , contributor
    Comments (35) | Send Message
    Eder, foreign competition will have little to do with how Verizon performs. If you need proof of this, look at the current Canadian retail based market. Most of the major stores & businesses are American owned.


    The bigger picture will be how Verizon positions themselves with their Canadian customers. If Verizon offers the 'Average Canadian User' a better value of service for a savings to the already over priced Canadian cell phone market, then they might just have something.


    I also believe Maher Yaghi view listed above to be over exaggerated.
    25 Jun 2013, 01:05 AM Reply Like
  • dunnhaupt
    , contributor
    Comments (2252) | Send Message
    Maher Yaghi's view may be mere wishful thinking. It will not be that easy to convince Canadians to change to a foreign service provider for no reason at all. Remember how German giant Telekom failed miserably trying break into the US.
    25 Jun 2013, 06:23 AM Reply Like
  • bjamesh
    , contributor
    Comments (275) | Send Message
    Good luck to Verizon trying to set up a tower network. The sharing of tower space owned by Telus, Bell and Rogers will be a challenge as the start-ups have found. While the incumbents are supposed to provide space to whomever, sometimes critical towers "have no space" left. The number (density) of towers in any location is regulated. Also, I'm fairly certain the three main wireless carriers don't just give away their real estate.


    Verizon will also find out about those annoying roaming fees the main networks like to apply. And sometimes a lot of calls will get dropped in the process.


    Don't forget the main wireless companies also have their lower price point subsidiaries which cater to certain segments of the market, ie younger first time users and those on a budget.


    Not sure if the foreign ownership rules/spectrum auctions will work in Verizon's favor.


    Bottom line: don't expect Bell (BCE), Telus (TU) or Rogers (RCI) to roll over and play dead.


    Disclosure: long BCE, TU, SJR, VZ and VOD
    25 Jun 2013, 05:26 PM Reply Like
  • JohnEarlBurnett
    , contributor
    Comments (22) | Send Message
    With Canada's population less than that of the state of California,(below 38 million) the costs to build a network just don't add up to make it profitable for $VZ to enter the Canadian market at this time...
    I only see this happening if $VZ were to get into bed with one of the preexisting Canadian companies Ie: $RCI Etc. (and I just don't see that happening)
    26 Jun 2013, 02:19 PM Reply Like
  • JohnEarlBurnett
    , contributor
    Comments (22) | Send Message
    UPDATE: Maybe this opportunity changes the game??... "Verizon has signed a nondisclosure agreement with #Mobilicity, a small upstart wireless carrier in Canada, in preparation for talks over a possible deal" [600,000 subscribers] $VZ $RCI $TU $BCE #Canada
    27 Jun 2013, 09:23 AM Reply Like
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