BCE Inc.’s ((BCE Quick QuoteBCE - Free Report) ) wing Bell announced plans to expand and bolster its wireless service in 224 communities across Canada by early 2026. This ambitious initiative includes building new towers and upgrading existing infrastructure to deliver faster download speeds, higher-quality video calls, seamless streaming and support for cutting-edge AI applications. The work is already progressing in urban, rural and northern communities, ensuring that Canadians across the country will benefit from better coverage, faster speeds and more reliable connectivity.

Since 2020, Bell has invested nearly $24 billion in its wireless and Pure Fibre networks, highlighting its commitment to expanding connectivity and improving service across the country. Currently, Bell’s wireless network covers more than 99% of Canadians, with 89% of the population having access to 5G/5G+ services, offering ultra-fast speeds and low latency for next-generation applications.

This latest expansion reflects Bell’s vision of a fully connected Canada, where reliable, high-speed wireless services are available throughout the country. With continued investment and innovation, Canadians can expect a future of seamless connectivity, advanced applications and unparalleled network performance.

Strategic Spending Aids BCE Amid Regulatory Hurdles

Significant investments in network coverage, customer retention, lucrative data plans and the launch of new handsets are likely to drive subscriber base expansion. It is witnessing operating profitability growth across its wireless, wireline and media segments. Bell Media’s Crave is currently a bilingual TV and streaming service offering more than 6,000 hours of exclusive francophone content from Crave and Super Écran as well as French-language versions of Showtime and HBO programming. The company has also launched ad-supported tiers on Crave and Addressable TV and Audio advertising to tap the growing demand for the digital advertisement market.

BCE has also outlined a roadmap to sustain growth, manage costs and optimize capital allocation. Its 2025 priorities include enhancing customer experience, expanding fiber and 5G networks, growing business technology services and driving digital media growth. The company is leveraging AI and automation to modernize operations, streamline support and deliver a seamless digital experience.

Through Bell, BCE has activated Canada’s largest 5G network, delivering unmatched mobile data speeds in Montreal, Toronto, Calgary, Edmonton and Vancouver. Continued investment in pure fibre and 5G strengthens its position in a competitive market. In partnership with Nokia, BCE also completed a 50-gigabit passive optical network trial, boosting Internet speeds using existing fiber infrastructure.

However, BCE faces mounting challenges amid a tough macroeconomic and regulatory environment. Economic uncertainty, persistent inflation and recession fears are hurting consumer confidence, while a sharp drop in its share price has raised its cost of capital. Adverse CRTC rulings, intense competition and slower immigration further weigh on the outlook. For 2025, BCE expects revenue and EBITDA headwinds from pricing pressures, weaker subscriber growth and higher media costs, with adjusted EPS now projected to decline 10–13%, pressured by rising interest, depreciation and increased shares from its dividend reinvestment plan.

How BCE’s Broader Communication Services Peers are Placed

Lumen Technologies ((LUMN Quick QuoteLUMN - Free Report) ) is gaining from opportunities arising from the proliferation of AI, which is fueling demand for its Private Connectivity Fabric (PCF) solutions. It has secured a total of $9 billion in PCF deals, up $500 million since the first quarter. Focus on “cloudifying” telecom and driving the adoption of its network-as-a-service (NaaS) solutions is another tailwind. Lumen plans to eliminate $1 billion in costs, with more than $350 million of run-rate cost benefit now anticipated in 2025.

Lumen continues to expect adjusted EBITDA in the band of $3.2-$3.4 billion, although it anticipates reporting numbers near the high end of the range. Stiff competition in AI, high costs and massive debt remain concerns. The sale of Mass Markets' fiber-to-the-home business to AT&T is intended to reduce debt.

TELUS Corporation ((TU Quick QuoteTU - Free Report) ) is gaining from strong momentum in the Health Service segments. TELUS Health services revenues grew 16% year over year in the second quarter of 2025, driven by global acquisitions in employer solutions, including Workplace Options and supported by growth in payvider offerings such as health benefits management, collaborative health records and virtual pharmacy solutions. Increasing mobility and fixed customer additions bode well for TELUS.

However, TELUS reaffirmed its 2025 outlook, targeting 2–4% growth in TTech operating revenue and 3–5% adjusted EBITDA growth with capex to be around $2.5 billion. Frequent acquisitions and declining ARPU may pose risks to TELUS’ growth and profitability. In the second quarter, Mobile network revenues fell 1% year over year due to a decline in mobile phone ARPU. Competition and high debt remain concerns.

Strength across key markets, improved operational efficiency and ongoing portfolio reshaping amid market challenges and forex headwinds aid Telefonica, S.A. ((TEF Quick QuoteTEF - Free Report) ) performance. Steady traction in both B2B and B2C sales propels the growth trajectory. To focus on high-margin areas, it has curbed its presence in Hispam by exiting Argentina and Peru and has started to sell its stake in Telefonica Colombia. Momentum in Telefonica Tech and Infra units bodes well. 5G coverage remains a top priority, with Spain at 94%, Germany at 98%, Brazil at 64% and the U.K. at 78%. Its ability to generate ample FCF anchors its strategic investments.

However, high debt load and stiff rivalry hurt it, while reliance on a few key suppliers creates risks for the business. For 2025, Telefonica continues to expect organic growth in revenues, EBITDA and EBITDAaL minus CapEx.