Morningstar Rating

Stock Research and Analysis

by Michael Hodel, CFA

Bulls Say

Smartphone penetration in Canada remains low for a developed country (roughly 55% at the end of 2014), providing a long runway for growth for BCE’s wireless business.
Despite losing out on the NHL deal, BCE’s remaining content portfolio remains solid, including full control of CTV (Canada’s largest private TV broadcaster) and a controlling stake in TSN, Canada’s version of ESPN.
BCE benefits from a network sharing agreement with Telus that requires BCE to upgrade and maintain only half of a nationwide network that it can make available to all of its wireless customers. Read more 

Bears Say

The CRTC will continue to push for new entrants and increased competition in the Canadian wireless market, which remains the biggest wild card in BCE’s long-term performance.
The satellite video and fixed-line telephone businesses will continue to erode as customers rely more heavily on fiber-based cable networks and wireless phones.
We anticipate BCE to face heightened competition for its fixed-line business on both the consumer and enterprise side from cable companies such as Rogers and Videotron. Read more 

Management

George Cope is president and CEO of BCE and Bell Canada after leading the company's customer-facing units, including the residential, enterprise, and wholesale groups. Before coming to BCE, Cope led Telus Mobility after serving as president and CEO   Read more 

Profile

BCE is the largest communications company in Canada. It has 7 million fixed-line phone subscribers, 8 million wireless customers, 3.3 million high-speed Internet customers,  Read more 

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