Q: I have held Telus for 10+ years and have been fine with the results but for the last year or so I have been wondering if they could be in risk of someone providing a product to compete with them for cell and internet coverage over satellite. I am aware of a few products for internet over satellite now. I read an article about perhaps Apple of going this route for their cell phones. With the recent announcement of the increased spend for Telus how likely do you see them in the position of shrinking revenue and earnings. Has the risk of the company increased.
5i Research Answer:
The Canadian market remains protected by regulations and competition has been limited. US providers are at a disadvantage until government rules change. This makes consumer prices higher, but it is a difficult country to cover and not that big of a market. So, while the threat of competition always exists, it is not something we would see as a major concern currently, especially in an ongoing trade war situation.
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