The Globe and Mail reports in its Saturday edition that Canadians have a long and proud history of hating their cellphone providers. The Globe's John Heinzl writes that "We're getting screwed by the telecom oligopoly in this country!" they like to complain, especially when they see what is on offer in the United States and Europe. The good news is that wireless prices in Canada have finally started dropping as competition intensifies after Quebecor's acquisition of Freedom Mobile in 2023. The bad news? With industry profits and stock prices under pressure, investors are now the ones complaining. Nowhere is the frustration more evident than with BCE. Weighed down by debt and with its dividend payout ratio well above 100 per cent, the company laid off thousands of workers and agreed to sell its 37.5-per-cent interest in Maple Leaf Sports and Entertainment to Rogers for $4.7-billion. A few weeks later, BCE said it will use the proceeds to purchase U.S.-based Ziply Fiber for about $5-billion. Underlining its stretched finances, BCE also put dividend increases on hold through 2025. With the stock yielding more than 11 per cent and investors bracing for a potential dividend cut, the BCE hate-fest may just be getting started.
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