5G will fuel profits at these two telecoms

Article Excerpt

5G wireless networks are up to 100 times faster than the current systems. That extra speed will not only help BCE and Telus attract new customers, it will also spur more businesses to use automobiles and other objects connected to the Web (known as the “Internet of Things”). That should spur their earnings for years to come. BCE INC. $63 is a buy. The company (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares o/s: 905.7 million; Market cap: $57.0 billion; Price-to-sales ratio: 2.5; Dividend yield: 5.6%; TSINetwork Rating: Above Average; www.bce.ca) now expects to spend a total of $14 billion on its networks (including 5G) between 2020 and 2022. That’s up $2 billion from its original plan. In addition to hardware, BCE recently agreed to purchase new wireless spectrum from the Canadian government for $2.07 billion. It expects to be able to offer 5G to 70% of Canada’s population by the end of 2021. 5G will open up new markets for BCE…