The Liberal government’s record immigration targets might not benefit people trying to buy their first home but Canada’s top telecommunications companies are raking in the dough due to the influx of new subscribers.
Cellphone plans are among the first things new immigrants sign up for upon arrival.
According to the credit-rating agency Morningstar DBRS, the few major carriers allowed to operate in Canada have seen cell plan subscriptions explode.
“For telecommunications incumbents, such as Bell Canada, Telus Corp., Rogers Communications Inc. and Videotron Ltd., international migration was a material contributing factor to strong subscriber growth in the 2022—23 period as more than a million immigrants entered Canada,” said diversified industries VP Vikas Munjal.
“That said, changes in policy or regulation, overall economic conditions, including a reduced or slower immigration flow or emigration given the ongoing cost of living crisis, as well as a maturing wireless market will likely challenge subscriber growth.”
According to Rogers CEO Tony Staffieri, the company is doing “extremely well” in signing up new immigrants to their plans.
Meanwhile, Quebecor Inc. CEO Pierre Karl Peledaeau, who owns the subsidiary Videotron, said they were doing “extremely well” due to the immigration targets.
Despite the inflow of new subscribers, cell plans by Canada’s top biggest subscribers are not getting any cheaper.
Rogers and Bell announced that they plan on increasing wireless data phone plan prices despite a promise from the Trudeau government that prices would come down.
Rogers revealed plans to make price adjustments to several phone plans including for Fido customers.
Prices hiked as much as nearly $9 per month depending on the bundle.
“We are committed to delivering mobile and residential services with the highest standard of quality and reliability to bring our customers the best network experience,” a Rogers spokesperson said.
