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SaskTel’s profits could be at risk, according to an analysis done on the Crown.
The report was done to see if SaskTel was left vulnerable because of Bell’s friendly deal of Manitoba Telco earlier this year.
Some of the risk is not new to those running the Crown but could now increase as a result of the acquisition.
“SaskTel has been extremely successful in the highly competitive communications industry for decades and we will continue to work hard to develop and implement a successful strategic business plan that meets the needs of Saskatchewan residents,” SaskTel president and CEO Ron Styles explained in a news release.
But would it be fair to say the risk-analysis doesn’t paint a rosy future for SaskTel?
“I wouldn’t go that far, I would say it highlights the sort of pressures, problems and issues that we face today,” Styles maintained. “Only time will tell whether or not they can handled by the corporation.”
Styles said SaskTel will do that by continuing to improve the network to provide more products and services.
Highlights of the report include:
- With the deal in Manitoba, the federal government may create incentives to encourage competition for wireless providers. This incentive could lower costs for companies competing against SaskTel, which could reduce the Crown’s ability to expand.
- With Bell setting up a western headquarters in Winnipeg, SaskTel could lose more Saskatchewan customers.
- Rogers may look to improve its standing with cable companies in Manitoba, which could impact companies and customers in both Manitoba and Saskatchewan.
- The risks faced by SaskTel may lower its net income, making the corporation unable to put as much money back in the government’s coffers
