The Successful Investor Hotline – Friday, July 11, 2014

Article Excerpt

BCE INC., $48.80, Toronto symbol BCE, fell slightly in response to the federal government’s new plan to auction off more blocks of high-quality wireless frequencies (or spectrum). Ottawa has set aside 60% of this spectrum for smaller wireless providers. It will also limit how much of the remainder that larger providers like BCE can buy. Ottawa hopes these moves will encourage other wireless carriers, which mainly operate in certain regions, to expand into other parts of Canada. The new rules are unlikely to substantially hurt BCE’s wireless operations, which supply 28% of its revenue. Meanwhile, the company continues to see strong demand for its Fibe service, which uses fibre optic cable to deliver high-speed Internet and digital TV. As of March 31, 2014, it had 534,110 Fibe TV subscribers in Ontario and Quebec, up 80.6% from a year earlier. BCE is a buy. BCE was recently covered in the June 2014 issue of The Successful Investor. Click here to access it. BCE was recently covered…