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National Bank on Telcos' Weak Strategy
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National Bank on Telcos' Weak Strategy
Jul 29, 2024 10:52 AM

01:26 PM EDT, 07/29/2024 (MT Newswires) -- In its "Weekly Wireless Tracker", National Bank notes that investors have been told that billions spent on wireless capex and spectrum and the rollout of fibre by telcos was done to create superior networks.

However the premium networks are not commanding premium pricing, notes analyst Adam Shine. In wireless, Telus ( TU ) is materially discounting 5G through its fighter brand, Public Mobile, where offers are nearly half of what the Big 3 are charging for 5G on their flagships. "The strategy to blanket Freedom/Fizz with little breathing room among offers persists, but is doing more damage to Big 3 shares and investor perceptions regarding the merits of investing in the sector than on Quebecor where wireless loading will occur given industry volumes and consumer behaviour.,"Shine writes.

In wireline, Bell's ongoing fibre promotions seem to be "leaving a lot of money on the table."

Price: 46.02, Change: -0.13, Percent Change: -0.29

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