Wireless promos up compared to last year: Barclays

Leading up to Canada’s 150th anniversary, wireless promotions from incumbents and their flanker brands have increased noticeably compared to last year, according to Barclays Capital analyst Phillip Huang. Promotions in the quarter encompassing April, May and June included Rogers Communications Inc. and Telus Corp. offering two extra gigabytes of data on top of certain data plans in most regions, while BCE Inc. began offering $270 off certain phones in Manitoba, Huang said in a Monday note. “While we do not believe any of these new plans were particularly disruptive to the overall market, they were on average more attractive than the promotions we observed in the prior year,” Huang said, adding June saw a noticeable increase, particularly for handsets. “We believe the level of promotions into quarter end have been more attractive vs. the prior year with more broad-based marketing and many offering $150 gift cards on top of the already discounted handsets and promotional plans,” Huang said. According to their websites, Rogers, Telus and Bell are all offering two extra gigabytes of data on top of certain data plans, while also offering a minimum of $100 off any device with the trade in of another eligible smartphone and activation of the new one on a two-year plan. Bell MTS’ website does not currently offer a $270 discount. Shaw Communications Inc.’s Freedom Mobile is also offering an extra two gigabytes of data on phone plans valued at $40 and above, according to its website. In light of Shaw’s recent purchase of Quebecor Inc.’s spectrum, Huang noted promotions from the incumbents’ flanker brands have been targeting Freedom Mobile. For example, in the quarter, Telus’ Public Mobile began offering 4GB at $40 per month to Freedom customers, while Rogers’ Fido starting offering the same amount of data for $45 per month targeting the same customers, Huang said. Those promotions could impact Shaw’s near-term wireless subscriber results, Huang said. Shaw reports its third quarter earnings on Wednesday. “With more attractive and broadly marketed discounts this year leading up to the big July 1st Canada Day long weekend…we estimate the industry is on-track to see some compression in Q2 service margins,” Huang said.

Wireless promos up compared to last year: Barclays

Brief | June 26, 2017

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Wireless promos up compared to last year: Barclays

Brief | June 26, 2017

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

Telecoms testing their networks for the future of quantum connectivity

Telus’ arguments for incumbent access to wholesale regime not supported by competitors

Bell won’t participate in subsidized broadband projects if wholesale access for Big Three continues, signs agreement with CNOC

Rogers’ purchase of Bell’s MLSE stake not being challenged by Competition Bureau ‘at this time’

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us