Competition will cut telecom's profits, says Conference Board

OTTAWA – Increasing competition and higher costs will limit profitability for Canada's telecommunications companies this year, says a new report by the Conference Board of Canada.According to Canadian Industrial Outlook: Canada's Telecommunications Industry - Spring 2011, telecom providers managed to post profit growth of 10.3% in 2010, thanks in large part to lower costs. But with costs on the rise again, it predicts that pre-tax profits will dip by 9.5% to $6.7 billion in 2011.Costs will continue to grow, led by above-average wage increases and higher interest rates, averaging 4% per year between 2011 and 2015, while at the same...