Telecom Companies Blame Slow Growth on Immigration Changes
Canadian telecom leaders Bell, Rogers, and Telus are pointing fingers at immigration policies for their sluggish subscriber growth. A recent report highlights that these companies attribute their business slowdown to the federal government's decision to cut back on new immigrants coming into Canada. In the first quarter of this year, they collectively gained fewer than 54,000 new mobile subscribers. This marks the slowest growth rate in four years.
Government Policy Shift
In October 2024, Prime Minister Justin Trudeau announced a significant change: a roughly 20% reduction in the number of permanent residents allowed into Canada for 2025 and 2026. Previously, Canada had welcomed many immigrants to help fill labor gaps. However, Trudeau admitted that this influx had not been balanced with the needs of housing and healthcare systems.
Impact on Subscriber Growth
The drop in new arrivals has clearly played a role in slowing subscriber growth for telecom companies. But there's more at play here; rising costs for wireless services are also affecting potential customers‘ decisions. As telecom providers continue to hike prices, many people may think twice before signing up.
Competition from Quebecor
On a different note, Quebecor is making waves with its brands Freedom Mobile and Videotron. The company reported adding 54,000 new wireless customers during the first quarter of 2025-almost half of all new subscribers across Canada during that time frame. Quebecor credits its competitive pricing strategy as key to attracting these customers. This suggests that affordability is crucial when it comes to winning over users.
New Leadership's Stance on Immigration
With Mark Carney now serving as Canada's Prime Minister, further changes may be ahead regarding immigration policy. He has promised to limit immigration even more by capping temporary workers and international students entering the country. His administration aims to reduce temporary residents from 7.3% down to just 5% of Canada's total population by 2028.
Conclusion: A Complex Situation Ahead
The combination of reduced immigration numbers and rising service costs presents challenges for Canadian telecom companies like Bell, Rogers, Telus-and even competitors like Quebecor who are finding success through lower prices.
