CRTC has been ahead of Telus when Telus allowed them to do so, although it delayed the final decision on the matter until the summer, Bell said, in this direction that has left large players reluctant to invest in their own network expansion.
“Frankly, we are not building the fiber business for Telus’ interests, and that’s what CRTC policy is now forcing us to do,” Bibic told analysts on the company’s fourth-quarter earnings call.
He said the CRTC will allow incumbents to “meaningless” when Internet services are “Canadian productivity is already behind”.
“I don’t understand why regulators have policies that create investment curbs, put employment risks and put buildings at risk of critical infrastructure,” he said.
“It seems that at the wrong time it is totally wrong policy.”
CRTC said its wholesale fiber rules are designed to provide a competitive environment for smaller internet providers, many of whom are struggling to compete with the big players.
After formulating limited edition rules at the end of 2023, Bell responded that it announced it would cut its online investment plan by more than $1 billion in 2024-25. By the end of last year, Bell had achieved a decrease of more than 70% and this year will be “more than we expected” to respond to the latest decisions from regulators, Bibich said Thursday.
“If the CRTC revokes its decision, we will re-examine our plans to establish,” he said.
The move raises analysts’ questions about Bell’s investment strategy, especially considering its $5 billion acquisition of Ziply Fiber, a U.S. fiber internet provider, which operates in Pacific Northwest. Bibic notes that the deal is expected to end this year as Bell tries to transform into a “fiber-first company.”
An analyst asked Bibic what would happen if Telus did come to resell Bell’s fiber services and the opportunity the company would have to resell fiber services in other markets in the future.
Bibic said the best form of competition comes from companies that build their own infrastructure.
“We always prefer to compete based on the network we have,” he said.
“We want to build. We want to compete with other companies that have built their own well-capitalized companies, we are ready to be here, obviously in Canada, and we are ready to seize the growth opportunities in the United States.”
Despite the $4.7 billion B.C. selling its shares in Maple Leaf Sports & Entertainment to Rival Rival Rogers Communications Inc., the Ziply Fiber deal was mostly raised to a large extent.
Bibic said it was one of several ways the company sought to make profits through non-core assets, and he also highlighted the $100 million B.C. Northwestel Inc. sale. Split, including MLSE and Northwestel deals for numbers.
The company reported net earnings attributable to public shareholders of $461 million or 51 cents per share for the quarter ended December 31, compared with profits of $382 million or 42 cents per share for the past three months of 2023 .
Its operating income in the fourth quarter totaled $6.42 billion, down from $6.47 billion in the same period last year.
BCE said it earned 79 cents per share, which was adjusted profit of 76 cents a year ago, according to an adjusted basis. Analysts expect an adjusted profit of 72 cents per share, according to estimates compiled by LSEG Data & Analytics.
In the 2025 outlook, the company provides revenue guidance, from an annual decline of 3% to a growth of 1%. Adjusted EPS is expected to be between 8% and 13% in 2025, while declines in 2024.
BCE hopes to keep its dividend at its current level after suspending any future hikes in November.
Desjardins analyst Jerome Dubreuil said the guide roughly meets expectations, but “may not be enough to change investors’ perceptions of stocks.”
“BCE has announced large capital expenditure cuts, which may be the right choice in this environment,” he wrote.
“However, we think it’s fair to say that we shouldn’t rely on CAPEX (Canada) to improve the highest line in the future.”
He said he would not rule out dividend cuts later in 2025 “accelerated spending in the U.S. given the uncomfortable spending situation in the U.S.”
BCE stocks traded at $34.28 in the middle on Thursday, down $1.62 or around 4.5% on the TSX.
In the most recent quarter, 56,550 net postpaid mobile subscribers were added, down 56.1% from the same period last year, due in part to a slowdown in Canada’s population growth.
It also cites higher churn, a measure of subscribers who canceled the service, increasing to 1.66%. Bell’s wireless phone revenue averaged $57.15 per user, down 2.7% from the previous year.
“We need to stir,” Bibic said in a phone interview.
“I’m still not happy with Churn, but we’ve already made the process and we know we have to solve it. I think in your environment of slowing growth and falling prices, you need to manage the cost structure and you need to keep customers.”
