MVNO decision consistent with traditional facilities-based policy: Bell’s Bibic

BCE Inc. CEO Mirko Bibic told shareholders Thursday that it is "too soon" to properly assess the impact of the CRTC's decision to mandate access to incumbent networks like Bell's for a limited number of spectrum-holding mobile network operators. "We have to submit our rates regarding the way the competitors have access to our network. So it's too soon to evaluate the impact of that ruling," Bibic said Thursday morning at Bell's annual shareholders meeting. "But despite the fact that the access was mandated, the decision supports the major investments that we are making into the network. And we hope that the federal government and the decision of the CRTC will continue to make decisions that will support our investments." Earlier in the morning, on the company's first quarter earnings conference call, Bibic told financial analysts that "given the range of potential MVNO decisions that had been considered, the CRTC did at least lay out in the decision that is, in a sense, consistent with our traditional facilities-based policies." Bell reported operating revenues of $5.71 billion -- a 1.2 per cent bump from the $5.64 billion the company reported in the equivalent quarter a year ago. In its report to shareholders, the company stated the revenue increase was “driven by higher product revenues, primarily due to greater sales of wireless premium mobile phones, along with higher equipment sales to large enterprise customers attributable to increased demand, mainly from the government sector." The company's net earnings dropped 6.3 per cent to $687 million from $733 million last year, which Bell stated was "mainly due to higher severance, acquisition and other costs and higher depreciation and amortization." Bell announced on the quarterly call that it would be reporting phone and wireless mobile connected devices separately. "These changes are consistent with the way we manage our business, reflect our focus on mobile phone subscribers and align to industry peers," the company's quarterly earnings report said. As a result, the company has revised its previously reported 2020 subscriber figures for comparison. Bell reported an addition of 2,405 net phone additions, which included 32,925 postpaid phone subscriber additions, and 30,520 prepaid subscriber losses. The net phone subscriber additions are an increase from the first quarter of last year, when the company lost 2,496 net phone subscribers. The company now has 9.17 million total wireless phone subscribers, a 2.2 per cent increase on the 8.97 the company reported this time last year. Bell also reported 74,159 subscriber additions in mobile connected devices, a 51.5 per cent increase from the 48,964 the company reported this time last year, making for 2.13 million total mobile connected device subscribers, a 13.5 per cent bump. On the wireline side, Bell reported adding 21,208 internet subscribers, a 6.1 per cent decrease on the 22,595 they added in the first quarter of 2020. The company also lost 9,112 television subscribers, roughly half the 18,555 subscribers the company lost a year ago. Included in the television numbers were 10,696 IPTV additions, and 19,808 satellite subscriber losses. The company reports a total of 3.73 million internet subscribers, 4.3 per cent more than this time last year, while the company has 2.72 million television subscribers, a 1.1 per cent decrease from last year. Bell's average billing per user (ABPU) for mobile phones dropped 2.4 per cent, down to $70.34 from $72.78 a year ago, which the company attributed to the continued loss of roaming revenue because of reduced travel during the COVID-19 pandemic. –Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

MVNO decision consistent with traditional facilities-based policy: Bell’s Bibic

News | April 29, 2021

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MVNO decision consistent with traditional facilities-based policy: Bell’s Bibic

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