Shares in Canada's Big Three Surge as Verizon Backs Off

Posted by Techvibes NewsDesk

Shares in Canada's big three telecom companies surged today on news that Verizon said it's no longer (and never really was) interested in entering Canada's wireless market.

Stock in Rogers soared the most in afternoon trading on the TSX and closed up 7.2%, or $3.00, to $44.59. Telus rose 6.7%, or $2.18, to $34.50 at the close, while Bell was up 3.9%, or $1.67, at $44.86.

You'll see from the chart below that Rogers is now trading only $2 below it's share price since rumours of Verizon coming north started circulating.

Part of the Big Three's Fair for Canada argument was that Verizon's potential entry into Canada was eroding Canadian pension plans as many include shares of the three telecommunications companies.

SEE ALSO: Verizon Not Coming to Canada and CEO Says Story was 'Way Overblown'

Robert Farmer, president of the Canadian Federation of Pensioners, which represents a quarter of a million retirees, even fired off a letter to Prime Minister Stephen Harper, warning that the failure of any of the big three Canadian telecommunications companies would bring “irreparable harm to all pensioners.”

Until today the trio had cumulative losses of almost $15 billion on the capital markets since news broke in June that Verizon was making an offer to purchase Wind Mobile.

Today Rogers, Telus, and Bell they made up a big portion of those losses.

Company:
Telus Corp.
Website:
http://www.telus.com
Location:
Vancouver, British Columbia, Canada

Technology is a key enabler for TELUS and our customers, providing advantage and differentiation in the marketplace. By managing the life cycle of current technologies and the timely introduction of new technologies we deliver superior service value to our customers and long-term growth oriented investment performance to our shareholders. For investors, TELUS is succeeding in managing technology and capital... more

Company:
Bell Canada
Website:
http://www.bell.ca
Location:
Vancouver, British Columbia, Canada

Bell is Canada's largest communications company, providing the most comprehensive and innovative suite of communication services to residential and business customers in Canada. Operating under the Bell brand, the Company's services include Bell Home Phone local and long distance services, Bell Mobility and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television,... more

Company:
Rogers Communications
Website:
http://www.rogers.com
Location:
Toronto, Ontario, Canada

We are a diversified Canadian communications and media company. We are engaged in wireless voice and data communications services through Wireless, Canada's largest wireless provider and the operator of the country's only national Global System for Mobile Communications ("GSM") based network. Through Cable we are one of Canada's largest providers of cable television services as well as high-speed Internet access... more


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Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property.Founded in 2002, Techvibes covers technology and business news that impacts Canadians. We combine breaking local news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and publishes general news stories. If you have a story you would like covered, email... more



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