Investment Q&A

While increased competition is good for the consumer, it is probably not great for the incumbent operators who may have gotten a bit complacent on their offerings and pricing. We wouldn't really be concerned long-term as they will have an ability to adapt to the competitive landscape and the valuations are reflecting some of these risks already. Overall, it just makes it a bit harder to get excited about any 'growth' story with these names at the margins on top of what is already a slow growth GDP type of outlook for the telcos. 

Specifically on T, Starlink’s direct-to-cell technology is poised to introduce new competition specifically targeting areas underserved by Bell, Rogers, and Telus. This satellite-driven service could impact Telus’s position, particularly in rural and remote regions that have historically relied on traditional telecom providers for connectivity. That being said, Telus has generally prioritized its urban and suburban wireless networks, leaving rural markets at risk of disruption from satellite competitors, especially if Starlink’s technology delivers reliable direct-to-cell service and supports emergency communications and VoIP at competitive rates. But it would be too expensive for Telus to really compete in rural, so it seems to have made a business choice here not to spend. Thus, Telus is likely generally OK here for at least the mid-term.