Outlook negative for wireline, positive for wireless and cable

TORONTO – The outlook for Canada’s traditional fixed-line telecom industry in 2006 is poor, while things are looking better for wireless services and the cable industry, according to the latest credit ratings report by Standard and Poors. Competition for wireline business will hurt incumbent telcos (Aliant, Bell Canada, Manitoba Telecom Services, and Telus) as the cable operators and other players enter the telephony market, the report says. Likewise, though, the cablecos (Cogeco, Rogers, Shaw, and Videotron) will face more competition from telephone operators providing video services via DSL. “The blurring of boundaries between wireline, wireless, and cable will continue,” the...