Canadian Tier 1 Carrier Report Highlights: Increased Competition Heightens Market Intensity

Following the release of the US Tier 1 carrier quarterly reports, the Canadian Tier 1 carriers have now also issued their Q4 2024 reports.

Here we summarize some of the key highlights from all three reports.

Canadian Tier 1 Carrier Business Priorities 

Rogers

1. Build the biggest and best networks in the country 
2. Deliver easy to use, reliable products and services 
3. Be the first choice for Canadians 
4. Be a strong national company investing in Canada 
5. Be the growth leader in our industry 

Bell

1. Putting the Customer First 
2. Offer the Best Networks & Services 
3. Business Technology Services Leadership 
4. Build a Digital Media & Content Powerhouse 

TELUS

Long-term (2025 & Beyond) 

1. Building global capabilities across data technologies and software-based services 
2. Providing integrated solutions that differentiate TELUS from our competitors 
3. Partnering, acquiring, and divesting to accelerate the implementation of our strategy and focus our resources on core business 
4. Focusing relentlessly on the growth markets of data and GenAI with the national expansion of broadband, complemented by international growth for TELUS Health, TELUS Agriculture & Consumer Goods and TELUS Digital 
5. Building a global brand and exemplifying a customers first culture, by investing in people, that are empowered through innovation, teamwork, and social purpose 

Short-term (2025)

1. Elevating our customers, communities, and social purpose by honoring our brand promise, Let’s make the future friendly™ 
2. Leveraging TELUS’ world-leading technology to drive superior growth across mobile, home and business services 
3. Scaling our innovative digital capabilities in TELUS Digital, TELUS Health and TELUS Agriculture & Consumer Goods to build assets of consequence 

Q4 2024 Subscriber Metric Key Takeaways 

• Bell, Rogers, and TELUS all pointed to the challenges of an increasingly competitive Canadian market. They anticipate continued market intensity in 2025, with wireless growth further constrained by slowing immigration and population growth. However, TELUS also predicts Canada’s mobile phone penetration rate will continue to increase, as customers adopt additional mobile devices and services. 
• Partially due to the heightened competitive environment, it’s no surprise we saw both Bell and TELUS report year-over-year decreases in Mobile Phone-Only ARPU (average revenue per user).

• Q4 2024 saw Bell’s lowest Mobile Phone-Only ARPU in at least three years at $57.15 (a 2.7% decrease YoY), while TELUS had a Mobile Phone-Only ARPU of $58.05 (down 0.8% YoY).
• Meanwhile, Rogers’ Mobile Phone-Only ARPU remained stable with a 0.03% increase YoY.
• Rogers’ churn also reduced slightly YoY, coming in 1.53% in Q4 2024 versus 1.67% in Q4 2023.
• Both TELUS and Bell also reported increases in YoY churn, attributing their rise in customer losses to an increase in customers switching to different carriers in response to more intense marketing and promotional price competition.
• TELUS also stated they’re seeing an increase in the adoption of BYOD plans.
• Mobile phone net adds were down year-over-year across the board, driven by higher mobile phone churn.
• Although net additions for mobile phones declined, carriers are optimistic about strong growth in other segments such as Wireline and IoT. IoT subscribers are expected to continue into 2025. While IoT has a lower ARPU compared to mobile phone services, IoT products and services are often added to existing accounts or drive additional sales, making it a promising option for increasing revenue and profits.

What Does All This Mean? 

The Canadian carriers’ subscriber results and business priorities indicate a focus on: 

Increasing Revenue and Reducing Costs 

Maximizing Promotional ROI and Adjusting to Increased Competition 

• Intense competition is driving higher churn rates for Bell and TELUS, while Rogers has seen slight improvement. Promotional intensity will likely remain high, requiring real-time analytics and dynamic pricing tools to ensure promotional strategies remain profitable without eroding margins. 

Capitalizing on Growth in Connected Devices & IoT 

• Despite declining mobile phone net adds, connected device growth remains strong and is connected to continue in 2025. 
• Carriers must focus on seamless activations, bundling, and upselling IoT products. Retailers need omnichannel solutions to improve the customer journey and capture incremental revenue. 

Addressing BYOD Growth and Longer Upgrade Cycles 

• TELUS highlighted increased BYOD adoption, meaning fewer subsidized sales and lower upgrade rates. 
• Retailers need to leverage trade-in programs, accessory bundling and device lifecycle management to offset declining smartphone sales and increase attachment rates. 

Enhancing Customer Experience to Improve Retention 

• Faster activations and a frictionless sales experience are key to keeping customers engaged. 
• Sales associates need user-friendly, easy-to-train-on technology that enhances the in-store experience and improves efficiency. 

Want to stay on top of industry news and trends? Subscribe to monthly The Overview newsletter.