Canada’s telecoms may shed assets amid slow growth. What could they cut?

When Bell Canada announced in June it was selling Northwestel Inc. to a consortium of northern Indigenous communities, the telecom giant hailed the $1-billion deal as a milestone in advancing Indigenous self-determination.

Bell said Northwestel, which provides phone, internet and television services in Canada’s north, would benefit from commitments by its new owner, known as Sixty North Unity, to double fibre internet speeds and expand high-speed availability.

But the deal also signalled a shift for Bell’s owner, BCE Inc., which appeared focused on “unlocking value from its business and monetizing standalone assets,” said CIBC analyst Stephanie Price in a recent research note.

That is to say, it was time to sell off parts of the company it no longer made sense to keep.

As Canada’s telecommunications sector copes with challenges such as slower growth and fierce competition, the dominant players are poised to continue shedding assets to reduce costs, industry watchers say.

Bell is not alone in that approach, Price added.

Rogers Communications Inc. has said it intendsto sell off certain assets, including nearly $1 billion in real estate. That comes after Rogers divested its stake in Cogeco in December 2023 for $829 million.

Analysts say the so-called Big 3 — Rogers, BCE and Telus Corp. — along with Quebecor Inc. and Cogeco, have an opportunity to pursue a range of divestiture options.

Canada’s largest telecommunications companies are behemoths, with wide-ranging divisions besides their phone and internet offerings. Those span from media to sports and entertainment, along with health products and services.

“The Canadian telecom environment has become more competitive recently, with pricing wars leading to slower top-line growth and a