DBRS Releases Commentary on Canada’s Newly Competitive Wireless Market
DBRS has today published a commentary that looks at how long-established incumbent carriers in Canada will be affected by the arrival of new entrants in the wireless market. DBRS believes that although the impact on their EBITDA margins and wireline telephony businesses could be considerable, the incumbents should be able to weather the competitive storm, with no major impact on their credit profiles.
“The competition has now officially arrived,” says Chris Diceman, Senior Vice President, Communications and Media. “DBRS has observed many wireless markets over the years where three players operate in relative harmony and it is the addition of a fourth (or even fifth) carrier that can disrupt the competitive landscape. While at least initially there will be no truly ‘national’ fourth or fifth carrier in Canada, we expect competition to heat up in the major markets across the country, growing most intense in the nation’s largest cities.”
A copy of this commentary is available by contacting us at info@dbrs.com.