Telus, Rogers, BCE slip following spectrum news, downgrades

As part of its ongoing efforts to boost mobile competition, the Canadian government plans to sell 30MHz. of spectrum in the 2.5GHz. band (good for urban areas) to smaller carriers. Strict rules will be placed to prevent the transfer of spectrum to bigger carriers.

Telus (TU -2%), Rogers (RCI -1.8%), and BCE (BCE -1.2%), who between them have 90% of the Canadian mobile market, are trading lower. BofA/Merrill has downgraded Telus and Rogers to Neutral in response to the news.

Earlier this year, the carriers bought the lion's share of the (rural-friendly) 700MHz. spectrum sold through an auction that raised $4.78B.

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Comments (5)
  • maybenot
    , contributor
    Comments (6782) | Send Message
    Good. But, not good enough. TU needs to drop down even more. Had too much of a run up of late.


    Need more 'bad' news.


    Long BCE, RCI, SJR (and wanting TU)
    7 Jul 2014, 02:07 PM Reply Like
  • Freedtoo
    , contributor
    Comments (30) | Send Message
    Competition between the big three is strong, just try to cancel your subscription and you will be quite surprised at the reaction. Instead of trying to hurt successful Canadian companies perhaps our government should support and encourage their continued success and get out of the way.
    7 Jul 2014, 02:39 PM Reply Like
  • DrT
    , contributor
    Comments (314) | Send Message
    I aree, it's all about trying to win cheap (for them) political points with voters.
    7 Jul 2014, 11:44 PM Reply Like
  • User 509088
    , contributor
    Comments (1769) | Send Message
    they chum the water, pretending to help the small holder, help competition, but if someone offshore wants to build a network, that person is blocked from doing so.


    every so often the regulator lets a big one buy a small one or two.


    what they really want is a u.s. phone co in their market. it makes the federal gov't weak in the knees.
    8 Jul 2014, 07:50 AM Reply Like
  • zeeking57
    , contributor
    Comments (34) | Send Message
    how badly will this announcement really impact RCI's growth, considering their revenue diversity?
    8 Jul 2014, 01:09 PM Reply Like
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