We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BCE Unit to Wind Down CDMA Network for 4G LTE in Canada
Read MoreHide Full Article
In a concerted effort to remain abreast of latest technological updates, BCE Inc. (BCE - Free Report) has decided to close down its legacy CDMA wireless network by Apr 30, 2019. The strategic move follows the transition of 99% its users to 4G LTE network as the company aims to have a uniform coverage across Canada.
Bell, BCE’s wholly owned subsidiary, initiated the process to wind down its CDMA network in 2017, and has almost completed it barring a few areas in Manitoba, Ontario, Québec and the Atlantic provinces. The company has notified users in these areas about the final phase of the transition by the end of this month.
Bell has supported the expansion of the LTE services through continued repurposing of wireless spectrum to increase capacity and coverage. With superior network facilities ensuring high data speed and exclusive services, the company has reportedly achieved the industry’s highest monthly blended average billing per user in 2018 and reductions in customer churn. The healthy growth trajectory has been further boosted by services such as Whole Home Wi-Fi and app-based live television service Alt TV, enhancing its position as Canada’s largest Internet service provider with net Internet subscriber additions up 22.7% year over year in 2018.
The company continues to focus on six strategic areas — investment in broadband network and services, accelerating wireless services, leveraging wireline momentum, expanding media coverage, improving customer service and achieving a competitive cost structure. These initiatives are expected to generate higher revenue per user and attract new customers.
With diligent execution of operational plans in the highly competitive Canadian communications industry, Bell has reported strong gains in wireless, Internet, TV and streaming customers. This, in turn, has enabled the company to reward shareholders with risk-adjusted returns through 15% increase in dividend and a total shareholder return of 261% over the past decade.
Shares of BCE have outperformed the industry with an average return of 8.8% compared with growth of 5.8% for the latter over the past six months.
The company’s wireless segment is expected to benefit from the postpaid business as it continues to enjoy solid subscriber addition. Significant investments in network coverage, customer retention, lucrative data plans and the launch of new handsets will likely drive subscriber base expansion for this Zacks Rank #3 (Hold) firm.
Deutsche Telekom has a long-term earnings growth expectation of 8.8%.
Telstra has a long-term earnings growth expectation of 3.7%.
Telecom Italia is currently trading at a forward P/E (F1) of 8.6x.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
BCE Unit to Wind Down CDMA Network for 4G LTE in Canada
In a concerted effort to remain abreast of latest technological updates, BCE Inc. (BCE - Free Report) has decided to close down its legacy CDMA wireless network by Apr 30, 2019. The strategic move follows the transition of 99% its users to 4G LTE network as the company aims to have a uniform coverage across Canada.
Bell, BCE’s wholly owned subsidiary, initiated the process to wind down its CDMA network in 2017, and has almost completed it barring a few areas in Manitoba, Ontario, Québec and the Atlantic provinces. The company has notified users in these areas about the final phase of the transition by the end of this month.
Bell has supported the expansion of the LTE services through continued repurposing of wireless spectrum to increase capacity and coverage. With superior network facilities ensuring high data speed and exclusive services, the company has reportedly achieved the industry’s highest monthly blended average billing per user in 2018 and reductions in customer churn. The healthy growth trajectory has been further boosted by services such as Whole Home Wi-Fi and app-based live television service Alt TV, enhancing its position as Canada’s largest Internet service provider with net Internet subscriber additions up 22.7% year over year in 2018.
The company continues to focus on six strategic areas — investment in broadband network and services, accelerating wireless services, leveraging wireline momentum, expanding media coverage, improving customer service and achieving a competitive cost structure. These initiatives are expected to generate higher revenue per user and attract new customers.
With diligent execution of operational plans in the highly competitive Canadian communications industry, Bell has reported strong gains in wireless, Internet, TV and streaming customers. This, in turn, has enabled the company to reward shareholders with risk-adjusted returns through 15% increase in dividend and a total shareholder return of 261% over the past decade.
Shares of BCE have outperformed the industry with an average return of 8.8% compared with growth of 5.8% for the latter over the past six months.
The company’s wireless segment is expected to benefit from the postpaid business as it continues to enjoy solid subscriber addition. Significant investments in network coverage, customer retention, lucrative data plans and the launch of new handsets will likely drive subscriber base expansion for this Zacks Rank #3 (Hold) firm.
Some better-ranked stocks in the industry are Deutsche Telekom AG (DTEGY - Free Report) , Telstra Corporation Limited and Telecom Italia S.p.A. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Deutsche Telekom has a long-term earnings growth expectation of 8.8%.
Telstra has a long-term earnings growth expectation of 3.7%.
Telecom Italia is currently trading at a forward P/E (F1) of 8.6x.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>