Competitive pressures will limit telecom industry profitability: report

OTTAWA – Canada’s telecommunications industry will grow at a modest pace over the next four years, but significant shifts in segments of the market will constraint profitability, according to the Conference Board’s report, entitled Canadian Industrial Outlook: Canada’s Telecommunications Industry - Spring 2008. “Fierce competitive pressures in growing segments of the telecommunications industry will limit price increases. This increasing competition benefits consumers – but will constrain profit growth for telecommunications companies,” said Michael Burt, associate director of the report. The number of wired phone lines is steadily declining, but increasing demand for wireless services will sustain overall growth in the...