RBC Dominion Securities Inc. Drew McReynolds, CFA, Caleb Ho, CPA, CFA CA, CPA (Analyst) (Associate) (416) 842-3805 (416) 842-3806
[email protected] [email protected] Riley Gray (Associate) (416) 842-4123
[email protected] August 31, 2020 Canadian Telecommunications Services August Channel Checks and Market Developments We summarize notable market developments within the Canadian telecommunications sector since July. For more detail on sector trends, please see our August 21, 2020 report entitled "Q2/20 Review - Wireless Competitive Intensity in Focus (Again)". EQUITY RESEARCH Notable sequential pick-up in promotional activity with what appears to be less back-to- school fanfare We observed a healthy dose of main brand promotional activity in August focused on the 20GB data bucket that was largely characterized by handset and plan pricing discounts, alongside what appears to be less YoY back-to-school promotional activity. On a sequential basis, promotional activity not surprisingly stepped up in August driven by incumbent responses to the launch of Shaw Mobile last month. Notably: (i) the iPhone 11 was offered on discount (~$520 off) by incumbent operators on refurbishing unlimited plans; (ii) in mid-August, while pricing on the promotional $80/20GB unlimited plans was momentarily increased to $85/20GB, $75/20GB pricing was re-introduced by all incumbents with this pricing remaining in-market through the end of August; (iii) in mid-August, TELUS launched a ‘Great Big Sale’ offering the aforementioned $75/20GB “Peace of Mind”