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How the WIND Mobile launch sank the Big 3 stock prices
With the news from this morning that Globalive will be launching as early as next week, the big 3 (Rogers, Bell and TELUS) did not fare so well on the TSX today. I’m no stock trader but seeing the charts below only show a down cycle and that cannot be good.
All of them went south with these final numbers at the end of trading:
Rogers: Last Price of $31.05 or down 6.95%
Bell: Last Price of $27.35 or down 3.76%
TELUS: Last Price of $32.90 or down 2.32%
We reached out to Rogers, Bell and TELUS. Each organizations Spokesperson states the following:
Bell: “It’s disappointing as we think Globalive quite clearly does not meet the requirements for Canadian control. We will be taking a close look at the reasoning behind this decision.”
Rogers: “We believe competition is good for Canadian consumers. We’ve always thrived in a competitive environment and we’re ready to meet the competition head on.”
TELUS: Michael Hennessy, TELUS senior vice-president of Regulatory and Government Affairs stated “We are disappointed with Cabinet’s decision to give one competitor a unique advantage, after bidders that spent $4 billion in the last auction were explicitly told that the rules prohibited foreign ownership and control. This decision has implications extending well beyond the telecommunications industry, given it creates a precedent on what constitutes compliance with foreign control restrictions.”
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17 comments for “How the WIND Mobile launch sank the Big 3 stock prices”
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It’s funny how Rogers’ stock went down the most, yet they’re the only ones who’re cool with it… probably has something to do with that roaming contract they signed with WIND.
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Meanwhile, Nadir Mohamed was whining about how it’s “inconceivable” for a 4th national carrier to enter the Canadian market.
I’m glad Rogers’ stock went down the most, and I’m gleeful at the prospect of ditching them in less than a week.
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it doesn’t take a genius to figure out why rogers stock went down the most. rogers has the most wireless exposure and most to lose. bce has the least (they have much more presence in wireline/landlines etc).
second to that, if you go back 2 months, after globalive was denied by the crtc, rogers stock has climbed the most
all that happened on friday was that the market ‘corrected’ itself for the gains that rogers did over the past 2 months, which was not justified
rogers is now properly trading where it should be and is doing fine.
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I’m so glad that this has happend because if the whole world did the same that Canada does then Canada wouldn’t have any investements anywhere and our economy would’ve collapsed ages ago.
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Rogers cool with it because they are ready for this and planning something
Bell and Telus just launched new networks but havent seen number of ppl sign up as they thought so they are expected to be pissed
Bellus prob doesnt want to give good HSPA plans
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Rogers Globalive Bell are going to be the TOP 3 players in the future. The end for Telus is near
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I’m happy with Rogers response, Bell and Telus are acting like big babies.
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anyone find it funny that rogers stock went down 6.95% the same price as a system access fee? I have to say that i think rogers is the best out of the 3. if it wasnt for them we would still be using cdma.
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Haha. That’s totally true. I love the irony of the SAF.
I agree that Rogers response was the best, even though they don’t mean it. No company would gladly give up some of their market share in the name of competition.
I agree, too, that it’s too bad for Canadians’ money to be leaving our country, but at the same time, it will save Canadians a ton of money. No word on the official plans, but I have no doubt that they are going to shock the other wireless companies. It will cause a change for all customers, and in the long run make our incumbents more honest.
Many other countries around the world have foreign investors in their wireless companies, and that’s why their technology is more advanced, and their prices are so much lower than Canadians are.
In addition, Canada has a terrible penetration rate, and Wind will assist in getting even more Canadians to be able to afford a cell phone. Honestly, I can’t even imagine living without one anymore. When I travel out of Canada, I always turn off my cell phone, and it drives me crazy to not have it. Hopefully with Wind, Canadians will be able to afford to keep it on, because the rates won’t be so insane.
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im actually quite happy Rogers is being proactive… it’s good to see that some of this cat-mouse games are being put into the consumers advantage
I hate Rogers but I give them +1 for that response.
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Globalive/Wind need to be careful. Neither myself or my friends will ever use a firm that is tied to the same company that frequently outbound telemarkets its long distance services, even if you tell them to take them off your list. Sometimes they even use Call Display to hide who they really are or even tell you that they want to sell you a Yak plan from Bell Canada! You can never get your name removed from their list! DISGUSTING.
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Disappointing to see they’re not in Quebec. Hope they fail so that other carriers can come in the market and bring TRUE nation-wide competition.
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Did you just see what they went through to do what they’ve done so far? If you’ve got the money maybe you can back them. However they can’t afford to launch nationwide right now. No one would be able to.
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You should do your research dink, they tried to buy spectrum in Quebec, but other companies like Videotron bought it all up at 2 to 4 times the rate of the rest of the country so they could ensure a monopoly on specific quebec wireless…
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Globalive is clearly not a Canadian owned company. Orascom’s(their parent company) website states they have 498 million subscribers! That’s 15 times the population of Canada! Tony Clement has for some reason sold us all out. This will have implications across all industries and will lead to Canadian money going into the pockets of non-Canadians. It’s bad for the Canadian economy. All so some people can save $5 a month on their phone bill? Disgraceful.
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whatever one thinks about having a new player in the cell phone market, wind is still 65% foreign owned, and a dangerous precedence has been set.
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Are you serious? A dangerous precedence? The reason why we pay so much is because we don’t have any competition at all. This is suppose to be captialism in Canada. With no competition there is no innovation. By the way, do you actually think that our money is staying in Canada? Bell has call centres in India. Is you’re money staying here?
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