Skip to Content
US Videos

A Top Stock in Telecom

We think this company is well-positioned to increase market share.

Mentioned: , , ,

The pandemic has materially affected the businesses of Canada's wireless carriers. Not only do we believe the industry in general is poised for dramatic business improvement when the pandemic ends, but we think BCE's business in particular is best positioned among its peers: We think it's favorably positioned in both wireless and wireline.

Over much of its wireline footprint, we think BCE is now a strong alternative to other cable companies, including Rogers, its primary competitor. Historically, BCE's copper-based network has offered less quality than cable competitors for television and broadband service. However, over the last several years, BCE has been building out fiber to the home, which now passes about 5.5 million homes and businesses. With its anticipated fiber-to-the-home build-out now nearly 60% complete, we believe it is substantial enough to impact results in the near term, and we think the runway extends for several years, as it continues increasing the number of homes it passes. The company eventually intends to pass 9 million to 12 million homes and business. It is also looking to upgrade service to more rural locations with its fixed wireless offering, which is now available in over 400,000 locations.

Morningstar does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.