Canada's Immigration Influx Spurring Telecom Subscriber Growth

In this commentary, we discuss the impact of Canada’s immigration influx on telecom subscriber growth.

Key highlights are as follows:
-- Canada's immigration influx has fueled Telecom subscriber growth.
-- Reduced immigration inflow or maturing wireless market could significantly increase market competition.
-- Over the near-to-medium term, Telecom players have a number of levers to mitigate such headwinds; however, continued investments are required to boost network and technological advancements.

“For telecommunications incumbents, such as Bell Canada, Telus Corporation, 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 Vikas Munjal, Vice President of Diversified Industries at Morningstar DBRS. “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.”