Toronto Telecom Stocks Steady after Ruling
Written on February 5, 2011 by Julia Woodard
Two significant rulings will influence the direction of Toronto-traded telecommunications stocks. BCE, Telus, and Rogers are all beneficiaries of a ruling against Wind Mobile.
Previously, the ruling was that:
The CRTC had ruled that a non-Canadian holds two-thirds of Globalive’s equity, is the principal source of technical expertise, and provides it with access to an established trademark.
This means that Egyptian-backed Globalive did not meet Canada’s foreign ownership rules.
Weeks later, the decision was reversed by Clement. This allowed Wind Mobile to sell mobile phones to Canadians in December 2009.
Both Rogers and BCE will trade under more favorable sentiment this week. BCE has performed better than Rogers in recent weeks. Bell – BCE reached 52-week highs recently.
Secondly, UBB – or usage-based billing, was a hot topic last week in Toronto. The support for the bill was questioned last week. Although telecom stocks did not react, the openness to competition for Internet access will be good for consumers. Ultimately, increased competition will force telecom companies to continue to innovate, and this will directly improve margins for Bell and Rogers.
BCE closed at $36.45 on Friday. Rogers Communcations closed at $35.72 on the Toronto markets.
By Chris Lau
- Toronto Financial Markets Examiner
Chris is an individual investor with more than 15 years of experience. He is also a registered part-time real estate agent in the Toronto (GTA)…
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