3500 auction should result in “careful consideration” by gov: Bell’s Bibic

For BCE Inc. CEO Mirko Bibic, the high cost of the 3,500 MHz spectrum auction should result in the federal government making "careful consideration" in its assessment of wireless pricing going forward. "Given how the government designed the auction, it was the most expensive auction in Canadian history, a key factor that requires careful consideration in future assessments on auction frameworks and on future assessments of wireless pricing by the government," Bibic said on a Thursday morning second quarter earnings call with analysts. Bell spent some $2.07 billion for 271 licenses, covering a population of 34.3 million in the auction, the results of which were announced a week ago. Bell reported $5.7 billion in overall revenue for the quarter, a 6.4 per cent jump from the 5.35 billion the company reported this time last year. The increase in revenue also accounted for a $440 million jump in profits, up to 734 billion from the $294 million it reported a year ago. Last year was the first full quarter to reflect the impact of the early COVID-19 lockdowns. According to the company's quarterly report, the revenue gain "was driven by higher service revenues of 5 per cent from greater media advertising and subscriber revenues, and continued growth in our mobile phones, retail internet, and Internet protocol TV (IPTV) subscriber bases." Bell's wireless business reported a 10.7 per cent jump in revenue, up to $2.13 billion from $1.92 billion a year ago. The wireline side dipped slightly, reporting $3 billion in revenue, a 1.3 per cent drop from the $3.04 billion reported last year. The media division showed significant gains, with a 30.4 per cent jump in revenue, up to $755 million from $579 million a year ago. In subscriber metrics, Bell reported 46,247 net mobile phone subscriber additions, a jump from the 12,110 the company activated in the second quarter of 2020 just following the outbreak of the COVID-19 pandemic in North America. The company now boasts a total of 9.21 million mobile phone subscribers, up 2.6 per cent from the 8.98 million the company reported this time a year ago. Average billing per user (ABPU) jumped 3.3 per cent, up to $72.21 from $69.88 a year ago. The company reported 17,680 retail internet subscribers, a 7.1 per cent drop from the 19,023 subscribers they added a year ago, for a total of 3.75 million. Bell also lost 4,928 retail television subscribers, less than the 15,554 they lost a year ago, leaving the company with a total of 2.72 million television subscribers. -- Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

3500 auction should result in “careful consideration” by gov: Bell’s Bibic

News | August 5, 2021

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3500 auction should result in “careful consideration” by gov: Bell’s Bibic

News | August 5, 2021

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