BCE Should Continue to Generate Returns on Its Fiber-to-the-Home Network Investment

BCE’s heavy investment in its new fiber network over the last several years has propelled the company to leadership in high-speed internet services in its core territory in eastern Canada. The firm is among the top broadband providers in the country, with 8.5 million wireline subscriptions across internet, television, and other broadband services. It has taken broadband share from Rogers and Quebecor. We expect this trend to continue, as BCE still lags in term of market penetration versus its two main competitors and the availability of further fiber network expansion opportunities.