Briefing

Telus net income falls 39 per cent in second quarter in latest sign pandemic is hurting telecoms

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The Vancouver-based firm netted $315 million in the second quarter, as higher bad-debt expenses, store closures and reduced roaming fees all weighed on results. (The Logic)

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Talking point: Telus fared better than Rogers, which reported a 53 per cent income drop last week, but the firms are facing similar challenges. Global travel restrictions have largely wiped out revenue from roaming fees, and a decision by both firms to waive home-internet overage charges until June 30 had a similar effect on that revenue stream. Not all challenges are short term, however. On Tuesday, the federal government reiterated its call for Rogers, Telus and Bell (which reports on August 6) to drop their prices by 25 per cent, and released a monitoring report showing cellphone prices haven’t decreased in any province other than Quebec. On Thursday, Shaw launched a new wireless service designed to take customers away from Telus in B.C. and Alberta. All the major telecoms are also competing with each other to roll out 5G and simultaneously battling cord cutters and the Competition Bureau.